Accounting and tax for U.S. importers and wholesalers
We keep the books for U.S. companies that buy from overseas and sell wholesale here, so tariffs, freight and parent-company purchases land in the right place.
- Supplier invoiceWhat you owe the seller$10.00
- Freight inOcean or air to your door$0.80
- Duties and tariffsPaid at entry$2.00
- Brokerage and port feesBroker and handling bills$0.20
Landed unit cost$13.00
Made-up figures to show the structure, not a tariff rate or a client result. The $13.00 sits in inventory until the unit is sold.
How do tariffs and freight flow into your cost of goods?
Duties, freight-in and brokerage are part of what the goods cost you, so they go into inventory with the invoice price and reach cost of goods sold only when you sell the units. Expensing them as they are paid makes margins look worse than they are, then better later.
- Build the landed cost per shipmentWe match each customs entry and freight bill to the purchase order, so every receipt carries its full cost.
- Hold it in inventory, release it on saleThe cost moves to cost of goods sold as units ship, which keeps gross margin by product honest when duty rates change mid-year.
- Check whether UNICAP appliesSection 263A can require more indirect costs in inventory. Businesses under the small-business gross receipts test are generally exempt; the figure is indexed (about $32 million for tax years beginning in 2026), and related companies are combined.
This page is about accounting for tariffs, not customs. Classification, valuation and entries belong to your customs broker, and we work alongside them. Tariff rules have changed often, so we book what was actually paid at entry and adjust if a refund or reassessment follows.
What Texas taxes apply to a wholesaler?
Two matter most: sales tax, where wholesale buyers usually give you a resale certificate, and franchise tax, which is based on margin rather than profit. Both depend on how your sales and costs are recorded.
Sales tax
- If you sell taxable goods in Texas you generally need a sales tax permit, even when most buyers are businesses.
- A buyer who resells the goods gives you a resale certificate (Texas Form 01-339). Keep it on file; without one, the sale is treated as taxable.
- You can give the same certificate to your own suppliers for goods you resell.
Franchise tax
- The rate for retailers and wholesalers is 0.375 percent of taxable margin; for the 2026 and 2027 reports, no tax is due at or below $2.65 million in annualized revenue, though an information report is still filed.
- Margin is the lowest of 70 percent of revenue, revenue less cost of goods sold, or revenue less compensation. Clean inventory records make the cost of goods sold option provable.
- Which deduction is best can change from year to year.
More detail on registration and filing is on our sales tax page and state tax page.
How should in-transit inventory and FOB terms be booked?
Record the goods when you take ownership, which is set by the shipping terms on the purchase, not by the day they reach the warehouse. Goods you own but have not received belong on the balance sheet as inventory in transit.
- FOB shipping point (origin)
- You own the goods once they leave the supplier. Book inventory in transit at period end, and the payable with it.
- FOB destination
- The seller owns the goods until delivery. Nothing is yours to book until they arrive.
In QuickBooks or NetSuite we use an in-transit account or status so receipts, bills and customs charges tie out at month end. See our accounting services for how the monthly close works. If you give stock away, see how a corporation can deduct donated inventory.
Why a Southlake CPA for DFW importers?
Our office is in Southlake, about 10 minutes from DFW Airport. The airport and AllianceTexas, the logistics area north of Fort Worth, anchor the warehouse, distribution and foreign-trade zone activity that many Texas importers rely on.
We work with importers across DFW and, remotely, beyond Texas. You can meet us in person or handle everything online.
Questions importers ask us
Do you handle customs entries or tariff classification?
No. That is the customs broker's work. We take their entries and bills and account for them correctly, and we are glad to coordinate with your broker.
Are tariffs an expense or part of inventory?
For goods you resell, duties paid on import are generally part of inventory cost and reach cost of goods sold when the goods are sold. Your situation can differ, so we confirm the treatment for your business.
Does Section 263A apply to my wholesale business?
It can, unless you pass the small-business gross receipts test, which is indexed for inflation and counts related companies together. We run the test each year and tell you whether UNICAP applies.
Which forms are involved when I buy from my Chinese parent?
Most often Form 5472 with your corporate return, plus customs entries that should match your inventory records. Payments for services or royalties can also bring withholding and Form 1042-S.
Do I need a Texas sales tax permit if I only sell to businesses?
Generally yes, if you sell taxable goods in Texas. Sales to buyers with valid resale certificates are not taxed, but you need the certificates on file. We confirm the details for your products and customers.
Can you work with my existing QuickBooks or NetSuite file?
Yes. We review the file, fix how landed costs and in-transit stock are set up, and then keep it current. Pricing depends on transaction volume, number of entities and how much cleanup the books need.
Talk to a CPA about your import books
Tell us where you buy, how it ships and who owns the company, and we will tell you what to fix first.
Book a free consultation- Hours (US Central)
- Monday to Friday, 9 am to 6 pm