Free Consultation|USA Only +1 (866)754 4460|Outside USA +1 (516)822 3100
InfoTaxSquare.com - Website Logo
  You are here : Home  >   Services  >   Article Directory of Sales Tax Registration  
TESTIMONIALS
InfoTaxSquare.com - Testimonials  


Difference Between Employer ID Number and State Tax ID Number

 
4.3/5 stars (3 votes)
Category : > Article Directory of Sales Tax Registration
Posted On : Mon Feb 22nd,2010

 
Understand the significance and distinction between an EIN and Sales and Use Tax. State Tax ID Number is also recognized as a sales and use tax.
 

What is the difference between an EIN and State ID Number?

Sales and Use tax permit is used to collect sales tax from consumers on taxable goods and services, whereas Employer Identification Number is used to file taxes and hire employees.

Employer Identification is issued by the Internal Revenue Service, whereas State Tax Id Number or Sales and Use Tax certificate is issued by the department of revenue of the state where the business is registered and conducted.

Sales tax is applied to tangible goods and taxable services such as clothing, cars, furniture, household items, and other goods, whereas Employer Identification Number is used to file business taxes such as payroll, withholding and business.

Sales tax id number or sales tax exemption certificate is a legal document which is issued by the state. This certificate gives a business an authority to collect required sales and use taxes from the end users on taxable items.

A sales tax is charged at the end-purchase of a good and provision of services including internet sales. Sales tax is imposed on tangible personal property which is movable.

A seller charges sales tax if it has 'nexus' where it is located. Nexus, or physical presence, is established if a business maintains a temporary or permanent presence of people (employees, service people or independent sales/service agents) or property (inventory, offices, warehouses) in a given locality. There is no over-arching definition of nexus, so each taxing locality may define it differently - and many do, leading to endless problems for businesses which have operations in multiple states.

The Internal Revenue Service does not charge to issue an EIN to a vendor, whereas generally there is a fee to obtain a state tax ID number.

The sales tax id number is also recognized by following mentioned names:

  • Reseller permit

  • Sales tax vendor id number

  • Reseller tax id

  • Sales tax permit

  • Reseller certificate and

  • Sales tax exemption certificate

  • Sales Tax Certificate of authority

  • Sales tax ID number

  • CRS Number

  • County vendor license

  • General excise tax

What is a similarity between State Tax ID and EIN?

A new Employer Identification Number and State Tax ID Number is issued to a unique business entity and same EIN and State Tax ID is used for the multiple businesses if doing business under social security number or  personal name.

 

 

 

  

Nashib Umer

Author of One Magic Click Optimization


Committed to give our users most updated news!
For instant news please subscribe at www.infotaxsquare.com


Leave Your Comments
Your name :
Email Address : Will not be published
Please enter your email if you want us to send answer to your email. We have a strict policy of not to share your email address with any other party.
Your message :
Insert these letters into the textfield below: (required, case-sensitive): dCVQQ
Do you want to Subscribe for
InfoTaxSquare Business News Bulletin?
Yes
No
Comments (18)
Mian Majid   wrote on : Wed Apr 21st,2010
You guys doing a wonderful job by educating the people who are new in business or planning to open business. It's a great help. thanks and best wishes.      View Detail
Reply : infotaxsquare.com
 
Dear Mian Majid:

Thanks for choosing InfoTaxSquare.com for your business needs and for your appreciation.

InfoTaxSquare.com
Business Documents
Filing!


Sandy   wrote on : Wed May 25th,2011
Is there a site or information out there that is available to see samples of each state's sale tax number. We host a private trade show and want to make sure the general public is not admitted and we require them to bring along the state sales tax number. However, because each states differs we are unable to really verfiy whether that number is correct or they are just creating a number. If we even would know the format for each state would be very helpful. Can you help?      View Detail
Reply : infotaxsquare.com
 
Dear Sandy,

Thanks for choosing InfoTaxSquare.com for your business needs. To gather the information we suggest you to call each state.

Committed to give our users most updated news!
For instant news please subscribe at www.InfotaxSquare.com


InfoTaxSquare.com
Business Documents
Filing!



Betty beebe   wrote on : Tue Aug 02nd,2011
How do I find my sales tax I'd number and get the certificate?      View Detail
Reply : infotaxsquare.com
 
Dear  Betty Beebe,

Thanks for choosing InfoTaxSquare.com for your business needs. Are you looking for a duplicate copy Sales Tax ID Number or wants to apply for a new one?

Committed to give our users most updated news!
For instant news please subscribe at www.InfotaxSquare.com


InfoTaxSquare.com
Business Documents
Filing!





Load More
 


InfoTaxSquare.com - 10 Successful Years
Copyright © 2010, Infotax Square All Rights Reserved.
InfoTaxSquare.com - Allows Payment Processing With Visa, MasterCard, American Express and Discover
Terms and conditions, features, support, pricing and service options subject to change without notice.