This may be a separate filing if your state does not have an income tax. It’s also important to note that ten US states will not allow vendors to accept resale certificates that were issued out of state.

What’s the difference between sales tax permit and resale certificate?

Resale certificates are also sometimes called “reseller’s permits” or sometimes just the blanket term “exemption certificates.” Your resale certificate is generally the same thing as your sales tax permit (sometimes called sales tax license.) However, in some cases, a state may issue a reseller a separate “resale certificate” number.

Do you need a resale certificate to sell a house?

Unless you have special circumstances, such as living in a state with no sales tax, then you’ll generally need to hold a sales tax permit in order to use a resale certificate.

What happens if I refuse a resale certificate?

If you do not refuse the resale certificate, you can find yourself on the hook to pay the sales tax you did not collect. The good news is that states don’t require you to become a private detective, so if the customer falsifies the document, you can claim innocence as long as you made a good faith effort to verify the certificate.

What does it mean to be a reseller?

The permit—also known as a resale license, resale certificate, and tax exemption certificate—allows resellers to purchase certain items free of sales tax: Ingredients or components to manufacture and sell things

Do you have to pay sales tax as a reseller?

In the United States, a business with a reseller permit doesn’t pay sales tax on the products it purchases for sale. But the reseller does have to collect the sales tax from customers and send it to the state. Like a business license, you take out your resale permit where your resale business operates.

Do you need a business license to be a reseller?

Get a business license where your business operates and/or is incorporated. In states outside of where a business is registered, you’ll need to have Foreign Qualification. Research state laws and regulations. Many states will let you use an out-of-state reseller’s permit to avoid paying sales tax on resale items.