Goods purchased for resale

Goods purchased for resale,

Definition of Goods purchased for resale:

  1. A category of finished items that are sold to a retailer by a manufacturer or distributer and are eventually intended to be sold to consumers for profit. These are not considered end-user goods at the time of purchase by the retailer because are still in the distribution phase. This is an important distinction because any sales tax paid by the retailer for these goods is considered a cost of doing business and can qualify as a tax reduction.

Meaning of Goods purchased for resale & Goods purchased for resale Definition