Questions and Answers
Wholesalers and Distributors
Kansas Retailers' Sales Tax
Sales Not Subject to Tax
WHOLESALERS and DISTRIBUTORS #115 (8/91)
STATUS: NOT REQUIRED TO REGISTER FOR THE COLLECTION OF SALES TAX
BASIS: Kansas does not require wholesalers to be registered for sales tax. If the company sells only to retailers registered for sales tax and said sale is for resale by the retailer, then the company would be considered as a wholesaler in Kansas and would not be required to register for sales tax. The buyer must have a valid sales tax registration certificate for the exemption to be valid. Any tangible personal property purchased by the wholesaler or distributor which will be consumed by the wholesaler or distributor shall not be exempt from sales tax.
"Each wholesaler, distributor, and manufacturer that makes retail sales, including sales to employees, shall secure a registration certificate and report these sales to the department. To simplify reporting, the wholesaler, distributor, or manufacturer may set up a retail division to report the retail sales. Transfers of inventory to the retail division for resale shall be exempt sales for resale, and the sales tax returns shall reflect only the sales made by the retail division to final consumers."
Form STD 28M - Multi-Jurisdiction Exemption Certificate
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