What Is the Difference Between Tangible and Intangible Goods?
Tangible goods are any item that can be physically touched, moved, seen, weighed, measured, or picked up. A car, printed book, clothing, tools, flowers, furniture, or DVDs are just a few of many examples of tangible goods. In contrast, downloadable software, spa treatments, and other services are examples of intangible goods which do not require a seller’s permit.
What Does the Permit Allow Your Business to Do?
When you have a seller’s permit, you have been granted the authority to collect sales tax on the tangible goods you sell. But as well, holding this permit allows the distributors and manufacturers to sell to someone else in the distribution chain without collecting tax. However, they can only do this if the individual they’re selling to holds a permit and can provide them with a statement that the goods in question are being purchased for the purpose of resale.
