Tax ID/Sales Tax ID

[ToyStory Fan]

A tax ID identifies you (your business)as a taxpayer, a sales tax ID identifies you(your business) as a re-seller and therefore exempt from paying sales tax on certain items...(since you would be charging it upon sale of the goods later)

 

[Rajah]

Okay, so essentially the Tax ID is for when wholesalers pay *you*. A sales tax ID is for when you're paying someone else.

Is that more or less correct?

Thanks!