Like between distributor and vendor or whatever it's called exactly
Businesses pay sales tax on items they purchase for their own use.
They don't pay sales tax on transactions in which they obtain products for resale in the store.
This applies to all businesses of all sizes. Its also universal across state lines.
Gary is correct about the use tax also. For example lets say Wal-Mart sets up a new store in Washington State where the sales tax is one of the highest in the country (because there's no state income tax). If they purchase shelves, cash registers, building supplies, etc in a state with no sales tax and bring them up to Washington, they have to write a check to the state of Washington for the sales tax they would have paid if they bought those items locally.
If Wal-Mart buys goods to sell in the stores, it doesn't pay sales tax because in the US, sales tax is collected only from the end of the chain.
However, when Wal-Mart buys flooring, cash registers, display racks, etc. it must pay sales tax. If the items are shipped from another state and that vendor isn't required to collect sales tax, then Wal-Mart must remit use tax to the state where the items are put to use.
I hope this helps.
Gary
The goods that they buy for resale are not taxable to Wal-Mart. That's universal with sales taxes whether the business is Wal-Mart of the mon-and-pop convenience store down the street.
On the other hand, the things that Wally World purchases for its own use ARE taxed. I've seen invoices for the storage and racking systems for a new store with sales tax alone running well into 6 figures. Wal-Mart's sales tax bill for office supplies alone probably runs into millions of dollars per year. (The tax bill for racking systems runs into tens of millions per year. I've seen the invoices first-hand!)
If they are buying items for resale, they don't pay sales tax.
For items bought for their own use like store or hq equipment and supplies, they DO pay sales tax.