USA Services
Reseller Certificate / Seller Permit
What Is a Reseller Certificate?
A reseller certificate is a document that allows businesses to purchase goods for resale without paying sales tax. Essentially, it certifies that the purchaser intends to resell the products and thus qualifies for a tax exemption at the point of sale. This certificate is essential for businesses that buy products to sell them to end customers, as it helps them avoid paying sales tax on inventory they do not use personally. The reseller certificate is issued by the state and must be presented to suppliers to make tax-exempt purchases.
A resale certificate is a tax form that allows you to purchase inventory without paying sales tax, provided that you intend to resell the items to customers. By using this certificate, you can avoid paying sales tax on your purchases, potentially saving a significant amount of money.
However, it’s important to note that while many states accept out-of-state resale certificates, there are 12 states (plus Washington, D.C.) that require you to register for a sales tax permit in their state to obtain a resale certificate.
What Is a Seller Permit?
A seller permit, also known as a sales tax permit or sales tax license, is an official document issued by a state or local government that authorizes a business to collect sales tax on taxable sales. It is required for businesses that sell goods or services that are subject to sales tax.
Having a seller permit enables a business to legally charge customers sales tax, which must be collected at the point of sale and then remitted to the appropriate tax authorities. The permit also often allows businesses to purchase inventory without paying sales tax, provided the items are intended for resale. Requirements and processes for obtaining a seller permit vary by state, so it’s important to check local regulations to ensure compliance.
