I live in the US. I tried to purchase the 220 volts home appliances to ship them to North Africa. The vendor in Chicago asked me the shipment address I gave him the address of North Africa. He said he needs the address in Chicago so I gave him the address of the freight forwarder in Chicago. Then he tried to take sales tax of the items. I told him that these items are 220 volts to export them to north Africa and you shouldn't charge tax for it but he refused. Any help. I need a government article to show it to him.
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2I'm voting to close this question as off-topic because this is not about personal finance.– ChrisInEdmontonCommented May 24, 2019 at 12:45
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2He's not shipping it to North Africa, he's shipping it to Chicago. From his point of view, this is a simple sale, there's no export going on.– ChrisInEdmontonCommented May 24, 2019 at 12:47
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1I wonder if the salesman doesn't want to do the extra paperwork to ship out of USA, but that would be strange for a company selling 220V equipment.– Andrew LazarusCommented May 24, 2019 at 18:40
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@ChrisInEdmonton - mixed feeling on this. Not a great PF question, but small business should be on topic, so abstaining from the vote.– JTP - Apologise to Monica ♦Commented May 24, 2019 at 19:12
1 Answer
In most states you can get an exemption for sales tax if you fill out the correct paperwork and meet the requirements.
For Illinois the state handles this process:
There are varius ways you can qualify for an exemption:
Sales to not-for-profit organizations that are exclusively charitable, religious, or educational
Sales to out-of-state buyers.
PUB 104 list even more details including an exemption for items being resold:
Sales for resale
The sale for resale exemption applies to sales made to businesses that purchase items tax free to resell. The tax and, if applicable, surcharge are collected and paid when the items and prepaid wireless services are sold at retail.
You will need to determine what you need to do so that you don't needlessly pay the taxes if you are supposed to be exempt.