Drop Shipping as a Distributor
Question: If we are a distributor who purchases from a manufacturer, who drop ships to our customer directly, and the customer is tax exempt, who is responsible for the sales tax?
Answer: If the customer is tax exempt, there generally should be no sales tax on the transaction. More information would be necessary to determine who would be responsible for the tax, should it be imposed.
Read more: Who you are, where you are and how you--and your clients--can comply