Hey, Ben here! Sales taxes aren’t fun, but they don’t have to be scary either.

Understanding Sales Tax Without Losing Your Mind

In our Q&A, a new vendor asked how to handle sales tax — and I could tell right away he was overthinking it.

So let’s break it down plain and simple.

You’re not a CPA; you’re a vendor.

And with the right paperwork, it’s easy to keep the government happy and keep more of your own money.

The Resale Certificate — Your First Tax Tool

The biggest mistake I see new vendors make?

Paying sales tax on their supplies.

Jason jumped in during the Q&A and said it perfectly: “You’re not supposed to pay sales tax on anything you’re reselling.”

That’s where your resale certificate comes in.

It tells your supplier that you’re buying goods to resell — so you don’t pay tax on them up front.

Then, you collect the tax from customers and send it to the state.

Example: You buy buns and hot dogs wholesale.

No tax there.

You sell a $5 dog to a customer, collect your state’s sales tax (say 7%), and remit that 35 cents later.

Easy as pie.

Vendor Sales Tax Guide — Avoid Double Taxation

Without a resale certificate, you’re getting taxed twice — once when you buy supplies, and again when you sell them.

That’s wasted profit.

Helpful: Are You Missing Tax Write-Offs in Your Vending Business?

As I told the group, “You don’t need to pay tax on your ingredients — that’s your customer’s job. You’re just the middleman collecting it.”

Helpful: Yes! Tax Exempt Hot Dog Vending – Say What?

Here’s the process in plain steps:

1. Get your state sales tax ID. Usually free or low-cost online.
2. Download your resale certificate. Most states let you print it instantly.
3. Give a copy to your supplier. That’s how you avoid being charged tax on purchases.
4. Collect the right amount at every sale. You’re just holding it for the state.
5. File and pay on time. Monthly or quarterly, depending on your state.

Jason reminded everyone that the states don’t play around with this.

If you collect tax and don’t send it in, that’s a big no-no.

But it’s not hard if you stay organized.

Helpful: Understanding EIN – FEIN – FED ID – SALES TAX ID

Keeping It Clean and Simple

I like to keep a small folder in my truck — one side for receipts, the other for tax forms.

Once a month, I spend 10 minutes filing it all.
That’s it.

Ben’s rule: “You don’t have to like it, but you do have to do it.”

If you want to make it easier, most states have free online filing tools.

You log in, punch in your totals, pay what you owe, and move on.

Helpful: Simplifying Sales Tax

Real Talk from the Cart

One vendor told me he’d been paying tax on supplies for two years before finding out he didn’t need to.

That mistake cost him thousands.

Don’t let that be you.

Get your paperwork right early, keep copies handy, and you’ll never stress about sales tax again.

Remember: you’re running a real business now.

Handle it like one, and the money stays in your pocket — right where it belongs.

Helpful: Most Street Food Vendors Are Overpaying Sales Tax (Here’s How to Fix It)