Search Category: Sellers/Vending

Wholesalers Recordkeeping

You must keep records of all the purchases and sales your business makes. Your records must show that taxes have been properly reported and forwarded to the Tax Commission.

Records you must keep

  • Normal accounting books (which can include information stored on computers). Normal records include general ledgers, sales journals, purchases journals, etc.
  • Documents that support entries in the books of account.

    Examples:

    • Receipts
    • Customer invoices and credit granted for returned items
    • Cash register tapes
    • Job/work orders
    • Contracts
    • Purchasing records
    • Bank and credit card statements
    • Tax returns and all schedules or working papers used to prepare the returns
  • Copies of sales tax resale or exemption certificates. Keep certificates as long as the buyer is a customer, plus four years.

What the records must show

  • Gross receipts from sales and services made in Idaho – even sales that you or your customer may consider exempt from tax. If you deliver the product or service somewhere other than your place of business, you must also keep records that prove where delivery took place.
  • The identity of customers claiming an exemption, the type of exemption, and what was sold exempt
  • All untaxed sales claimed on tax returns
  • The total purchase price of anything bought for sale, rental, lease, or your own use
  • The amount of sales tax collected from your customer or that you paid to a vendor

Keep all sales and use tax records for at least four years.

  • You must keep all sales and use tax records for at least four years unless you have written permission from the Tax Commission to destroy them.
  • If you don’t have an Idaho seller’s permit number, you’ll need to keep your records for seven years.

Selling Goods – Wholesalers

Selling to resellers

Wholesalers can sell goods without collecting tax from customers who will resell the goods. If the customers won’t resell all the goods, you must collect tax on the items they won’t resell. (See Selling at retail below.) To sell goods to a customer without collecting tax:

The resale/exemption certificate must have all areas that apply completed, and be signed and dated.

Selling at retail

If you only make wholesale sales, you don’t need a seller’s permit. But if you sell to customers that don’t resell all the goods you sell them, you’re acting as a retailer for those sales. Retailers must get an Idaho seller’s permit and collect sales tax. Read more on our Retailers page.

Wholesalers Basics Guide

If you’re a wholesaler and only sell to resellers, you can buy goods you’ll sell without paying sales tax (tax exempt).

Wholesaler defined

A wholesaler can be an individual, a business, a nonprofit organization, or a government agency. A wholesaler:

  • Only sells goods to a customer who will resell them, or
  • Only leases goods to a company that will lease or rent the goods to someone else

Buying Goods for Resale – Wholesalers

Form ST-101

If you buy goods for resale from Idaho sellers, you must give them a completed pdf Form ST-101 – Sales Tax Resale or Exemption Certificate.

Fill in the form:

  1. Write the name and address of both the seller and your business at the top of the form.
  2. In section 1 “Buying for Resale,” line a — write the nature of your business and describe the products you sell.
  3. On line b — check the second box that says “Wholesale only; no retail sales”. Wholesalers don’t need a permit to buy exempt for resale.
  4. Under “Buyer” at the bottom of the page — sign the form. Fill in the rest of the fields (name, title, EIN or driver’s license information, and date).

Out-of-state businesses

If you’re an out-of-state business that buys from registered Idaho retailers, you can give them a completed Uniform Sales and Use Tax Certificate – Multijurisdiction instead of form ST-101.

Fill in the form:

  1. Write the name and address of both the seller and your business at the top of the form.
  2. Check the box for “Wholesaler.”
  3. Write “Wholesale sales only” in the section that asks for your permit number.
    Note: If you have an Idaho permit, write it in the permit number section.
  4. Sign and fill out the bottom of the form.

The seller should keep the certificate and not charge tax on your future qualifying purchases.

Pay tax on goods you won’t resell

You must pay tax on items you buy that aren’t for resale to your customers.

Examples

  • Warehouse shelving, equipment, and supplies
  • Merchandise display racks
  • Cash registers
  • Cash register tape and sales invoices
  • Flyers handed out to customers
  • Advertising inserts
  • Office equipment and supplies
  • Goods you take from your resale inventory to use yourself or give away

Laws and Rules for Food, Meals and Drinks

Learn more about food, meals and drinks:

Learn more about Idaho tax statutes 

Learn more about our Rules 

Recordkeeping for Food, Meals, and Drinks

You must keep records of all the purchases and sales that your business makes. Your records must show that you properly collected, reported, and paid or forwarded taxes to Idaho.

Records you must keep

  • Normal books of account
  • Documents that support entries in the books of account
  • Tax returns and payments
  • Copies of sales tax resale or exemption certificates (Form ST-101)
    Note: Keep a buyer’s exemption certificate for as long as you do business with that buyer, plus four years. We’ll bill you for tax due if you don’t have completed exemption certificates for buyers you sell exempt to. It’s always a good idea to make sure your customer’s exemption certificate is still valid and up-to-date.

What your records must show

  • Gross receipts from sales and services made in Idaho — even sales that you or your customer might consider exempt from tax. You must also keep records that prove where delivery took place when you deliver the product or service somewhere other than your place of business.
  • The identity of customers claiming an exemption, the type of exemption, and what you sold them exempt.
  • All deductions claimed in filing returns.
  • The total purchase price of anything bought for sale, rental, lease, or your own use.
  • The amount of sales tax collected from your customer or that you paid to a vendor.

You must keep all sales and use tax records for four years. You should keep them for seven years if you don’t file returns.

Buying Goods for Resale – Food, Meals, and Drinks

Some of the things you use to sell or serve food, meals and drinks are exempt.

Exempt goods when buying for resale

You can buy goods without paying tax if the goods are all of the following:

  • For resale to customers
  • Included in the fee charged to customers
  • Single-use items used by the customers

You must give your vendor a completed pdf Form ST-101 – Sales Tax Resale or Exemption Certificate, to buy these goods exempt.

Taxable goods

You must pay tax on items that you don’t intend to sell, aren’t included in the price to your customer or that your customers don’t directly use up.

Exempt Uses – Food, Meals and Drinks

Giving away food, meals and beverages from your resale inventory isn’t subject to use tax in certain situations.

Employee meals

Retailers in the business of selling prepared food and beverages don’t owe use tax on the value of the food or beverages given to their employees.

This exemption applies only to prepared food and beverages given to employees. Prepared food and beverages sold to employees at a discount are taxable on the discounted price.

Prepared food

For this exemption, prepared food means food intended for human consumption that’s one or more of the following:

  • Heated when given away
  • Consists of two or more ingredients that the retailer combines and gives away as a single item
  • Is customarily served with utensils

Prepared beverage

For this exemption, prepared beverage means any beverage intended for human consumption.

Tastings or donations

Food and beverages given away as tasting samples aren’t subject to use tax in either of these cases:
  • The food or nonalcoholic sample you’re giving away is available for sale where you’re handing it out (e.g., grocery stores).
  • The wine or beer sample you’re giving away to a potential customer is the maximum serving allowed by Idaho and U.S. law, at a place that sells such beverages.
You don’t owe use tax on donations of food or beverages to individuals and current Idaho-registered nonprofit organizations.

Exempt Sales – Food, Meals and Drinks

Sales of food, meals and drinks to certain customers, governments and organizations are exempt.

Sales to Idaho or U.S. government agencies

Sales billed to and paid directly by the U.S. federal government or an Idaho government agency (state, county or city) are exempt. They can pay the charges by check, credit card or cash. The qualifying agency must give you a completed pdf Form ST-101 – Sales Tax Resale or Exemption Certificate to buy the food, meals or drinks exempt. Or, when paying with cash, a pdf Form ST-104G – Sales Tax Exemption Claim – for Cash Purchases by Government Agencies, can be used. Traveling government employees can’t use this form to buy meals, drinks or lodging exempt.

Sales to organizations exempt from Idaho sales and use tax

Qualifying organizations can buy food, meals and drinks exempt when they pay or are billed for it directly. Employees can’t pay the charges and be reimbursed. Qualified organizations are listed in Idaho Code section 63-3622O and on pdf Form ST-101 – Sales Tax Resale or Exemption Certificate. The organization must give you a Form ST-101 that’s filled out completely and accurately to buy food, meals or drinks exempt. Otherwise, you could be responsible for paying that tax yourself.

Programs that provide nutritional meals for the aging

Meals that are part of a program to provide nutritional meals for seniors under Title III of the Older Americans Act (OAA) are exempt. The seniors don’t need an exemption certificate to buy the meals. You as the provider of the meals must give your vendor a completed pdf Form ST-101 – Sales Tax Resale or Exemption Certificate, to buy the meal ingredients exempt.

Church meals sold to their members

Food, meals and drinks a religious organization sells at a church function are exempt if the meals are only available to members of the church. Church members don’t need an exemption certificate to buy the meals. You as the seller of the meals must give your vendor a completed pdf Form ST-101 – Sales Tax Resale or Exemption Certificate, to buy the meal ingredients exempt.

Sales of food, meals and drinks by cooperative groups

Cooperative living groups (e.g. fraternities and sororities) that prepare and serve meals to only their members aren’t retailers. They’re consumers and must pay tax on their purchases. These groups don’t charge sales tax on allocated fees to members for meals, even if those fees are separately stated or part of a lump sum for room and board. Cooperative living groups selling to nonmembers are retailers that must get a seller’s permit and charge sales tax.

Sales of food, meals and drinks by boarding houses

  • Meals that boarding houses furnish are taxable if they are separately stated. The boarding house can buy certain items to prepare the meals exempt for resale.
  • When the regular board and room charges include the cost of meals, the boarding house is not selling the meals. Instead, the boarding house is the consumer of items used to prepare the meals and must pay tax on all goods used to prepare and serve the meals.

Coupons, Vouchers and Gift Cards – Food, Meals and Drinks

Customers often use coupons, vouchers or gift cards to pay for all or part of the bill. Tax these payment types as follows.

Coupons

Does a third party reimburse you?Charge sales tax on:Example
YesTotal sales price before you subtract the discount amountManufacturer’s coupon
NoSales price after you subtract the discount amountCoupon you distribute in a newspaper or online

Vouchers

Vouchers are something that a customer can use for a discount on a product or service, such as a two-for-one dinner or a manicure at a reduced price. The customer buys the voucher in advance from a third-party provider, such as Groupon.

Do you know how much the customer paid for the voucher?Charge sales tax on:
YesAmount the customer paid for the voucher
NoFace value of the voucher

Keep documentation to support the tax calculation on all discounted sales.

Gift cards and certificates

Don’t charge tax when a customer buys gift cards or certificates because they’re a form of payment. Charge sales tax on the price of the goods that someone buys using the gift cards or certificates.

You can’t treat a gift card redemption like it’s a retailer’s discount coupon, even if you sold the gift card or certificate at less than its face value.