Resale Tax Certificate

A resale certificate is an official document that easily instills confusion in many online resellers.

Resale tax certificate. This certificate is only for use by a purchaser who. A is registered as a new york state sales tax vendor and has a valid certificate of authority issued by the tax department and is making purchases of tangible personal property other than motor fuel or. Depending on the state you live in it can also be called a resellers permit resellers license resellers certificate resale license sales tax id or sales tax permit. Resale certificates when purchasing items for resale registered sellers may avoid the sales tax by giving their supplier adequate documentation in the form of a resale certificate.

It is also important to realize the difference between a resale certificate and a resale license. The certificate allows business owners or their representatives to buy or rent property or services tax free when the property or service is resold or re rented. A resale certificate indicates the item was in good faith that the purchaser would resell the item and report tax on the final sale. Form st 120 resale certificate is a sales tax exemption certificate.

A resale certificate is the form you issue to suppliers and it includes a spot for your resale license number. However just like with anything sales tax related how to use a resale certificate varies from state to state. You can do this by presenting a resale certificate sometimes called a resellers permit or by other names to your vendor at checkout.