Dropshipping from Walmart to Amazon

[SpyGuy]

Hi. I list products for sale on Amazon and I source them from Walmart. In the past I entered a random tax certificate number into the Amazon tax settings so I could charge tax. I charged tax for a while with no issues.

My consultant who I now know was wrong told me I was doing it correctly. He said that I need to collect tax on Amazon since I'm paying tax on Walmart when I buy the items. I'm passing the tax through to Walmart.

Well, Amazon got on me about the tax settings so I had to delete them, but I'm still getting charged tax at Walmart when I buy.

I know that I can apply to every state in the country that charges taxes and apply for the reseller tax exemption certificate, but.... does anybody really do that?

I know many people are doing this same dropshipping scheme I'm doing and I can't imagine that anybody would go through all that work. Lol.

The problem for me is... I'm trying to do business the right way and be legit about things. Hmmm... Maybe I should be in church asking questions instead of on this forum. Lots of fun stuff going on here though!

[user3657]

I would really stop what you are doing.......

[phaz0rz]

Can you add the price of Walmart's tax into the listing price on AZ? Or are their different %'s involved that would make it too hard?

[BaggaDonuts]

Eh, this business model seems even more flawed than arbitrage in the long-term but if you can make it work, good for you.

[austyn12x]

Originally Posted by user3657

I would really stop what you are doing.......

Why is it not legal?

I don't see the point of paying tax if you don't have to .(sorry I know this is oldish but this question is bugging me)