If you run an Ecommerce or CPG business in Arkansas, securing an Arkansas Resale Certificate is a smart move to protect your margins and streamline operations.
This certificate allows you to purchase inventory and raw materials tax-free, helping you lower upfront costs, stay competitive in pricing, and remain compliant with Arkansas sales tax laws.
In Arkansas, an Exemption Certificate is a document issued by the Arkansas Department of Finance and Administration that allows businesses to:
The purpose is to prevent double taxation once at the wholesale level and again at the point of retail sale.
However, an Arkansas resale certificate is not a blanket exemption from all sales tax obligations. Businesses are still required to collect and remit sales tax on taxable sales to end consumers.
Obtaining an Exemption Certificate in Arkansas offers several significant advantages for businesses that purchase goods for resale.
Here are some key benefits:
In Arkansas, the specific form required for a resale certificate is the Arkansas Exemption Certificate (ST-391).
When filling out Form ST-391, a purchaser must include the Sales/Use Tax Permit Number to identify that it is registered with the Arkansas Department of Finance and Administration and authorized to make tax-exempt purchases for resale.
An Arkansas Sales Tax Permit authorizes your business to collect and remit sales tax on taxable sales to customers. An Arkansas Exemption Certificate (ST-391), on the other hand, allows you to purchase goods tax-free from suppliers if those goods are intended for resale. To use a resale certificate, you must have an active sales tax permit.
Businesses that purchase goods for resale can use an Arkansas Exemption Certificate. To do so, the business must actively sell taxable tangible products and hold a valid Arkansas Sales Tax Permit.
Getting a resale certificate in Arkansas is simple, but you’ll need to meet a few key requirements first. Here’s how to do it:
1. Make Sure You’re Eligible: Your business must sell taxable goods or services and be registered with the Arkansas Department of Finance and Administration. Only businesses with a valid Arkansas Sales Tax Permit can use a resale certificate.
2. Get an Arkansas Sales Tax Permit: If you don’t already have one, apply for an Arkansas Sales Tax Permit through the Arkansas Taxpayer Access Point (ATAP) website. This permit is required before you can issue or use a resale certificate.
Need help? Read our blog: How to Get a Seller’s Permit in Arkansas
3. Gather Your Business Information: You’ll need basic business details to complete the resale certificate, including:
4. Complete Form ST-391: Download and fill out the Arkansas Exemption Certificate (Form ST-391) from the Arkansas Department of Finance and Administration website. You’ll present this form to your suppliers when making tax-exempt purchases.
5. Submission: No submission is required in Arkansas. You don’t need to submit the resale certificate to the state. Instead, give the completed form directly to your suppliers when buying items for resale.
6. Pay Any Applicable Fees: There’s no cost to use Form ST-391, but you’ll need a valid Arkansas Sales Tax Permit, which costs $50 to register. To see if there’s a cost for the permit, check out our guide on Sales Tax Permit fees.
7. Understand Renewal Requirements: Your blanket exemption certificate remains valid if you have a recurring business relationship with the seller. This means you’re not required to renew or update the certificate as long as no more than 12 months pass between sales transactions.
To properly utilize your resale certificate in Arkansas when making tax-exempt purchases for resale, you’ll need to present a valid copy of your Arkansas Sales and Use Tax Resale Certificate to your supplier at the time of purchase.
Arkansas generally does accept resale certificates issued by other states. However, there might be specific conditions:
It’s always a good idea to confirm the vendor’s policy on accepting out-of-state certificates beforehand.
For more information regarding sales tax exemption laws in Arkansas, you may visit the state website.
A multi-jurisdictional resale certificate is a standardized form to simplify tax-exempt purchases for businesses that operate and make purchases for resale across state lines.
Unlike a standard resale certificate issued by a single state, a multi-jurisdictional certificate aims to be recognized and accepted by multiple states as valid proof that the goods being purchased are intended for resale and are therefore exempt from sales tax at the time of purchase.
However, it’s crucial to understand that not all states accept these multi-state forms, and acceptance can come with specific conditions.
There are two primary types of multi-jurisdictional resale certificates that a business operating in or selling to vendors in Arkansas might encounter:
Businesses need to verify whether Arkansas accepts these multi-jurisdictional certificates and if there are any specific requirements or limitations on their use within the state. This is to avoid any audit issues.
If you’re using an Arkansas resale certificate, you’re responsible for ensuring it’s used only for purchases of goods or services you intend to resell. Using it for personal or operational items (like office supplies or equipment) is illegal and may lead to penalties.
As a seller in Arkansas, accepting a resale certificate comes with the responsibility of verifying and retaining proper documentation for tax-exempt sales. You must:
Keep records for at least 6 years: A properly completed resale certificate is your official proof of why sales tax wasn’t collected. You must retain it in your records for at least six years in case of a sales tax audit by the Director of the Department of Finance and Administration.
Yes. Improper use of a resale certificate, such as using it for personal or non-resale purchases, can result in serious penalties. Always use Form ST-391 correctly and only for qualified resale purchases to avoid issues.
The Exemption Certificate (Form ST-391) expires if not used within a twelve-month timeframe.
If you’re a seller in Arkansas, here’s how to validate a buyer’s resale certificate:
Managing sales tax compliance and resale certificates in Arkansas doesn’t have to be complicated. TaxHero simplifies the process, from keeping your Arkansas Sales Tax Permit active to ensuring you use resale certificates correctly.
Save time. Avoid penalties. Stay compliant.
Schedule a Demo to see how TaxHero can streamline your Arkansas resale certificate process today!
If you run an Ecommerce or CPG business in Illinois, securing a Illinois Resale Certificate is a smart move to protect your margins and streamline operations.
This certificate allows you to purchase inventory and raw materials tax-free, helping you lower upfront costs, stay competitive in pricing, and remain compliant with Illinois sales tax laws.
In Illinois, the Illinois Department of Revenue (IDOR) issues the Certificate of Resale that allows businesses to:
The purpose is to prevent double taxation, once at the wholesale level and again at the point of retail sale.
However, the Illinois resale certificate doesn’t exempt you from all sales tax obligations. Businesses must still collect and remit sales tax
Obtaining a resale certificate in Illinois offers several significant advantages for businesses that purchase goods for resale.
Here are some key benefits:
In Illinois, the official resale certificate form is Form CRT-61, Certificate of Resale.
Purchasers must include their Illinois Account ID to confirm they are registered with the Illinois Department of Revenue (IDOR) and authorized to make tax-exempt purchases for resale.
An Illinois Sales Tax Permit authorizes your business to collect and remit sales tax on taxable sales to customers. An Illinois Resale Certificate (name of form), on the other hand, allows you to purchase goods tax-free from suppliers if those goods are intended for resale. To use a resale certificate, you must have an active sales tax permit.
Businesses that purchase goods for resale can use an Illinois Resale Certificate. To do so, the business must actively sell taxable tangible products and hold a valid Illinois Sales Tax Permit.
Getting a resale certificate in Illinois is simple, but you’ll need to meet a few key requirements first. Here’s how to do it:
Your business must sell taxable goods or services and be registered with the Illinois Department of Revenue (IDOR). Only businesses with a valid Illinois Sales Tax Permit (also called an Illinois Account ID) are eligible to use a resale certificate.
If you don’t already have one, apply for an Illinois Sales Tax Permit through the MyTax Illinois website. You must get this permit before you can issue or use a resale certificate
Need help? Read our blog: How to Get a Seller’s Permit in Illinois
You’ll need basic business details to complete the resale certificate, including:
Download and fill out the Illinois Certificate of Resale (Form CRT-61) from the IDOR website. Give this form to your suppliers when making tax-exempt purchases.
You don’t need to submit the form to IDOR. You must give the completed Form CRT-61 directly to your supplier at the time of purchase for resale.
There’s no fee to use Form CRT-61, but you must first obtain a valid Illinois Sales Tax Permit. To see if there are any registration costs, refer to our guide on Sales Tax Permit fees.
Illinois resale certificates don’t expire on a fixed schedule, but sellers are advised to request updated certificates at least every three years. Your resale certificate stays valid only while your Illinois Sales Tax Permit remains active and in good standing.
To properly utilize your resale certificate in Illinois when making tax-exempt purchases for resale, you’ll need to present a valid copy of your Illinois Certificate of Resale (Form CRT-61) to your supplier at the time of purchase. This form shows that the goods are being purchased solely for resale in the normal course of business.
Illinois does not accept resale certificates issued by other states. Instead, specific requirements must be followed:
If you are an out-of-state business purchasing from a vendor in Illinois, you must complete and present Illinois Form CRT-61 and include either your Illinois account ID number or documentation showing exemption based on delivery outside Illinois. Vendors must confirm the documentation meets IDOR standards.
For more details, see 86 Ill. Adm. Code 130.1405 or visit the Illinois Department of Revenue website.
A multi-jurisdictional resale certificate is a standardized form designed to simplify tax-exempt purchases for businesses that operate and make purchases for resale across state lines.
Unlike a standard resale certificate issued by a single state, a multi-jurisdictional certificate aims to be recognized and accepted by multiple states as valid proof that the goods being purchased are intended for resale and are therefore exempt from sales tax at the time of purchase.
However, it’s crucial to understand that not all states accept these multi-state forms, and acceptance can come with specific conditions.
Businesses need to verify whether Illinois accepts these multi-jurisdictional certificates and if there are any specific requirements or limitations on their use within the state. This is to avoid any audit issues.
If you’re using an Illinois resale certificate, you’re responsible for ensuring it’s used only for purchases of goods or services you intend to resell. Using it for personal or operational items (like office supplies or equipment) is illegal and may lead to penalties.
As a seller in Illinois, accepting a resale certificate carries important legal responsibilities. To protect yourself from tax liability, you must:
Keep records for at least 4 years: Your properly completed resale certificate proves why you didn’t collect sales tax. If you’re audited, keep all records for the audit period until it ends, even if that means storing them for more than four years.
Yes. Misusing a resale certificate, such as using it for personal items or non-resale purposes, can lead to serious consequences. Penalties may include tax liability, interest, additional fines, and even criminal prosecution. Always use Form CRT-61 correctly and only for legitimate resale transactions.
Technically, the CRT-61 resale certificate has no formal expiration date. However, if you’re using a blanket certificate for ongoing purchases from the same seller, Illinois requires it to be reviewed and updated at least once every three years. The certificate also becomes invalid if your Illinois Sales Tax Permit becomes inactive or revoked.
If you’re a seller, follow these steps to validate a buyer’s resale certificate:
You don’t have to complicate managing sales tax compliance and resale certificates in Illinois. TaxHero simplifies the process, from keeping your Illinois Sales Tax Permit active to ensuring you use resale certificates correctly.
Save time. Avoid penalties. Stay compliant.
Schedule a Demo to see how TaxHero can streamline your resale certificate in Illinois process today!
If you run an Ecommerce or CPG business in Arizona, securing an Arizona Resale Certificate is a smart move to protect your margins and streamline operations.
This certificate allows you to purchase inventory and raw materials tax-free, helping you lower upfront costs, stay competitive in pricing, and remain compliant with Arizona sales tax laws.
In Arizona, a Resale Certificate is a document issued by the Arizona Department of Revenue (AZDOR) that allows businesses to:
The purpose is to prevent double taxation, first at the wholesale level and then again at the point of retail sale.
However, an Arizona resale certificate is not a blanket exemption from all sales tax obligations. Businesses are still required to collect and remit sales tax on taxable sales to end consumers.
Obtaining a resale certificate in Arizona offers several significant advantages for businesses that purchase goods for resale.
Here are some key benefits:
In Arizona, the specific form required for a resale certificate is the Form 5000A. Note that this form is not the same as the Form 5000.
The Form 5000 is a broader exemption certificate. It can be used by certain qualified individuals, agencies, or non-profit organizations. That’s why businesses should not use this form for general resale purposes.
When filling out Form 5000A, a purchaser must include their Arizona Transaction Privilege Tax (TPT) license number to identify that it is registered with the AZDOR and authorized to make tax-exempt purchases for resale.
An Arizona Sales Tax Permit authorizes your business to collect and remit sales tax on taxable sales to customers. Note that in Arizona, a sales tax permit is called a Transaction Privilege Tax (TPT) license.
On the other hand, you can use the Arizona Resale Certificate (Form 5000A) to purchase goods tax-free from suppliers if you intend to resell those goods. To use a resale certificate, you must have an active sales tax permit.
Businesses that purchase goods for resale can use an Arizona Resale Certificate. To do so, the business must actively sell taxable tangible products and hold a valid Arizona Sales Tax Permit.
Getting a resale certificate in Arizona is simple, but you’ll need to meet a few key requirements first. Here’s how to do it:
1. Make Sure You’re Eligible: Your business must sell taxable goods or services and be registered with the Arizona Department of Revenue (AZDOR). Only businesses with a valid Arizona TPT License can use a resale certificate.
2. Get an Arizona TPT License: If you don’t already have one, apply for an Arizona TPT License through the AZDOR website. You must obtain this permit before you can use the state’s resale certificate.
Need help? Read our blog: How to Get a Seller’s Permit in Arizona
3. Provide a Valid Sales Tax Permit License: To use an Arizona Resale Certificate (Form 5000A) for purchases made in Arizona, your business should have an active Arizona Transaction Privilege Tax (TPT) license. This TPT license number is a mandatory field on Form 5000A and signifies that your business is registered with the AZDOR to collect and remit TPT on your subsequent taxable sales.
For Out-of-State Purchases: Businesses outside of Arizona without a sales tax nexus in the state do not need an Arizona TPT License. Instead, you can present a valid resale certificate or sales tax permit from your home state to Arizona vendors. If your business has a TPT nexus in Arizona, you must register for an Arizona TPT license. This is necessary to make tax-exempt purchases for resale in the state using Form 5000A.
4. Gather Your Business Information: You’ll need basic business details to complete the resale certificate, including:
5. Complete the Form 5000A: Download and fill out the Arizona Resale Certificate (Form 5000A) from the AZDOR’s website. You’ll present this form to your suppliers when making tax-exempt purchases.
6. Submission: No submission required in Arizona. You don’t submit the resale certificate to the state. Instead, give the completed form directly to your suppliers when buying items for resale.
7. Pay Any Applicable Fees: There’s no cost to use Form 5000A, but you’ll need a valid Arizona TPT license. To see if there’s a cost for the license, then you can check out our guide on Sales Tax Permit fees.
8. Understand Renewal Requirements: There are two options available for you when you fill out your Arizona Resale Certificate (Form 5000A).
The validity of any resale certificate (whether for a single transaction or a period) depends upon your Arizona Transaction Privilege Tax (TPT) license remaining active throughout that established period.
If your TPT license becomes inactive, your resale certificate will no longer be valid.
To properly utilize your resale certificate in Arizona when making tax-exempt purchases for resale, you’ll need to present a valid copy of your Transaction Privilege Tax (TPT) Resale Certificate (Form 5000A) to your supplier at the time of purchase.
Arizona generally accepts resale certificates issued by other states.
If you are an out-of-state business purchasing from a vendor in Arizona and plan to use your home state’s resale certificate, be prepared to provide it at the time of purchase.
However, note that Arizona vendors have the option to decline alternative resale certificates. This is to avoid being subject to a greater burden of proof when accepting forms other than the Form 5000A. With that in mind, contact your Arizona supplier ahead of time to confirm their policy on accepting out-of-state certificates.
For more information regarding sales tax exemption laws in Arizona, you may read the state’s official guidelines.
A standardized multi-jurisdictional resale certificate simplifies tax-exempt purchases for businesses that operate and make purchases for resale across state lines.
Unlike a standard resale certificate issued by a single state, a multi-jurisdictional certificate seeks recognition and acceptance by multiple states as valid proof that the buyer intends to purchase the goods for resale and is therefore exempt from sales tax at the time of purchase.
However, it’s crucial to understand that not all states accept these multi-state forms, and acceptance can come with specific conditions.
There are 3 primary types of multi-jurisdictional resale certificates that a business operating in or selling to vendors in Arizona might encounter:
Under the state’s official guidelines, Arizona is open to a variety of other resale certificate forms.
Despite this confirmation, it’s still best to verify which certificates your Arizona suppliers are willing to accept. This practice ensures seamless transactions and helps avoid audit issues.
If you use an Arizona resale certificate, you are responsible for ensuring you use it only for purchases of goods or services you intend to resell. Using it for personal or operational items (like office supplies or equipment) is illegal and may lead to penalties.
As a seller in Arizona, accepting a resale certificate comes with the responsibility of verifying and retaining proper documentation for tax-exempt sales. You must:
Keep records for at least 4 years: A properly completed resale certificate is your official proof of why sales tax wasn’t collected. You must retain it in your records for at least four years in case of a sales tax audit by the AZDOR.
Yes. The intentional misuse of an Arizona Resale Certificate (Form 5000A) results in criminal penalties. The Arizona authorities may charge anyone found guilty of this offense with a felony. Learn more about Arizona’s definition of criminal violations in the A.R.S. § 42-1127(B)
The Arizona resale certificate (Form 5000A) is typically valid for 12 months or a one-time transaction. However, buyers have the option to choose the certificate’s validity period, which cannot exceed 48 months. Moreover, the validity also depends on the buyer’s sales tax permit or TPT license. An inactive permit or license means the resale certificate also becomes invalid.
To validate a Resale Certificate in Arizona, there are 3 steps:
You don’t have to complicate managing sales tax compliance and resale certificates in Arizona. TaxHero simplifies the process. From keeping your Arizona Transaction Privilege Tax License active to ensuring you use resale certificates correctly.
Save time. Avoid penalties. Stay compliant.
Schedule a Demo to see how TaxHero can streamline your resale certificate in Arizona process today!
If you run an Ecommerce or CPG business in Alabama, securing an Alabama Resale Certificate is a smart move to protect your margins and streamline operations.
This certificate allows you to purchase inventory and raw materials tax-free, helping you lower upfront costs, stay competitive in pricing, and remain compliant with Alabama sales tax laws.
In Alabama, a State Sales and Use Tax Certificate of Exemption (Form STE-1) is a document issued by the Alabama Department of Revenue that allows businesses to:
The purpose is to prevent double taxation once at the wholesale level and again at the point of retail sale.
However, an Alabama resale certificate is not a blanket exemption from all sales tax obligations. Businesses are still required to collect and remit sales tax on taxable sales to end consumers.
Obtaining a resale certificate in Alabama offers several significant advantages for businesses that purchase goods for resale.
Here are some key benefits:
In Alabama, the specific form required for a resale certificate is Form STE-1.
An Alabama Sales Tax Permit authorizes your business to collect and remit sales tax on taxable sales to customers. An Alabama State Sales and Use Tax Certificate of Exemption (Form STE-1), on the other hand, allows you to purchase goods tax-free from suppliers if those goods are intended for resale. To use a resale certificate, you must have an active sales tax permit.
Businesses that purchase goods for resale can use an Alabama Resale Certificate. To do so, the business must actively sell taxable tangible products.
Getting a resale certificate in Alabama is simple, but you’ll need to meet a few key requirements first. Here’s how to do it:
To request a sales tax exemption in Alabama, you’ll need to submit the Application for Sales and Use Tax Certificate of Exemption Form (ST: EX-A1). This is the official application used by businesses like wholesalers and manufacturers to apply for a State Sales and Use Tax Certificate of Exemption (Form STE-1).
This allows you to make tax-free purchases of items meant for resale or to become a component part of products you sell.
You’ll need basic business details to complete the Application for Sales and Use Tax Certificate of Exemption. This includes:
Once your Form ST: EX-A1 is complete, you will typically mail it to the appropriate Taxpayer Service Center as listed in the form’s instructions.
Once the Department approves the Application for Sales and Use Tax Exemption Certificate, it will issue Form STE-1 to you, which includes the following information:
You’ll present this form to your suppliers when making tax-exempt purchases.
There’s no cost to use Form STE-1. However, to qualify for an Alabama resale exemption, you generally need to have a valid Alabama Sales Tax Permit (License), which is typically free to obtain. To see if there’s a cost for the permit, check out our guide on Sales Tax Permit fees.
In Alabama, you must renew your certificate annually before it expires. If your previous application is less than three years old and your business details haven’t changed, you can simply email stexemptionunit@revenue.alabama.gov to request a renewal.
To properly utilize your resale certificate in Alabama when making tax-exempt purchases for resale, you’ll need to present a valid copy of your Alabama Sales and Use Tax Certificate of Exemption.
While Alabama generally does not issue its own sales tax licenses (and thus Form STE-1s) to businesses without a physical presence within its borders, there are important notes for out-of-state businesses making purchases for resale that are shipped into Alabama:
Due diligence is still expected. If an Alabama customer claims a resale exemption, you should verify their Alabama Sales Tax License (or their home-state equivalent if they are buying for resale into Alabama).
The Simplified Seller Use Tax (SSUT) program is designed for eligible out-of-state sellers with no physical presence in Alabama, allowing them to collect, report, and remit a flat 8% seller’s use tax on all sales into the state. This flat rate simplifies compliance by removing the need to track local tax rates.
While sellers generally apply the 8% tax to retail sales, wholesale transactions for resale, where the buyer provides a valid Alabama resale certificate, are excluded from the $250,000 sales threshold that determines SSUT registration requirements. As a result, these bona fide resale transactions remain tax-exempt under the program.
For more information regarding sales tax exemption laws in Alabama, you may visit the state website.
A multi-jurisdictional resale certificate is a standardized form to simplify tax-exempt purchases for businesses that operate and make purchases for resale across state lines.
Unlike a standard resale certificate issued by a single state, a multi-jurisdictional certificate aims to be recognized and accepted by multiple states as valid proof that the goods being purchased are intended for resale and are therefore exempt from sales tax at the time of purchase.
However, it’s crucial to understand that not all states accept these multi-state forms, and acceptance can come with specific conditions.
There are two primary types of multi-jurisdictional resale certificates that a business operating in or selling to vendors in Alabama might encounter:
Businesses need to verify whether Alabama accepts these multi-jurisdictional certificates and if there are any specific requirements or limitations on their use within the state. This is to avoid any audit issues.
If you’re using an Alabama resale certificate, you’re responsible for ensuring it’s used only for purchases of goods or services you intend to resell. Using it for personal or operational items (like office supplies or equipment) is illegal and may lead to penalties.
As a seller in Alabama, accepting a resale certificate comes with the responsibility of verifying and retaining proper documentation for tax-exempt sales. You must:
Keep records of your transactions: A properly completed resale certificate is your official proof of why sales tax wasn’t collected. You must retain it in your records in case of a sales tax audit by the Alabama Department of Revenue.
Yes. Improper use of a resale certificate, such as using it for personal or non-resale purchases, can result in serious penalties. Offenders may face a civil fine of at least $2,000 or double the tax due, whichever is greater.
In some cases, they may also lose the right to use a resale certificate for up to two years. Always use Form STE-1 correctly and only for qualified resale purchases to avoid issues.
The resale certificate (Form STE-1) is valid for one year from the date it’s issued. Any person or company that fails to obtain or renew a certificate of exemption before its expiration will no longer be allowed to make tax-exempt purchases until such time as the application for renewal is made and the certificate is reinstated.
If you’re a seller in Alabama, here’s how to validate a buyer’s resale certificate:
Managing sales tax compliance and resale certificates in Alabama doesn’t have to be complicated. TaxHero simplifies the process, from keeping your Alabama Sales Tax Permit active to ensuring you use resale certificates correctly.
Save time. Avoid penalties. Stay compliant.
Schedule a Demo to see how TaxHero can streamline your Alabama resale certificate process today!
If you run an Ecommerce or CPG business in California, securing a California Resale Certificate is a smart move to protect your margins and streamline operations.
This certificate allows you to purchase inventory and raw materials tax-free, helping you lower upfront costs, stay competitive in pricing, and remain compliant with California sales tax laws.
In California, the California Department of Tax and Fee Administration (CDTFA) issues the California Resale Certificate that allows businesses to:
The resale certificate helps avoid double taxation, once at wholesale and again at the point of retail sale.
However, this exemption applies only to inventory purchases intended for resale. Businesses must still collect and remit sales tax on sales made to end consumers.
Obtaining a resale certificate in California offers several significant advantages for businesses that purchase goods for resale.
Here are some key benefits:
In California, the form used is the CDTFA-230 General Resale Certificate.
When completing the form, purchasers must include their California seller’s permit number that the CDTFA issued, which verifies they are registered to collect and report sales tax on taxable transactions.
A California Sales Tax Permit authorizes your business to collect and remit sales tax on taxable sales to customers. A California Resale Certificate (Form CDTFA-230), on the other hand, is a document that lets your business purchase goods tax-free from suppliers, as long as those goods are intended for resale. You must hold a valid and active sales tax permit before issuing a resale certificate.
Businesses that purchase goods for resale can use a California Resale Certificate. To do so, the business must actively sell taxable tangible products and hold a valid California Sales Tax Permit.
Getting a resale certificate in California is simple, but you’ll need to meet a few key requirements first. Here’s how to do it:
1. Make Sure You’re Eligible: Your business must sell taxable tangible goods and register with the California Department of Tax and Fee Administration (CDTFA). Only businesses with a valid California Seller’s Permit can issue or use a resale certificate.
2. Get a California Sales Tax Permit: If you don’t already have one, you can apply for a California Seller’s Permit through the CDTFA Online Services Portal. You must complete this step before you can issue resale certificates.
Need help? Read our blog: How to Get a Seller’s Permit in California
3. Gather Your Business Information: You’ll need basic business details to complete the resale certificate, including:
4. Complete CDTFA-230 General Resale Certificate: You can download the California General Resale Certificate (CDTFA-230) from the CDTFA’s website and fill it out. This is the official resale certificate form you’ll present to suppliers to make tax-exempt purchases.
5. Submission: In California, you do not submit the resale certificate to the CDTFA. Instead, give the completed certificate directly to your vendor or supplier when making a tax-exempt purchase for resale.
6. Pay Any Applicable Fees: There’s no fee to use the resale certificate (Form CDTFA-230). However, your California Seller’s Permit may have registration requirements depending on your business type. Learn more in our guide on Sales Tax Permit fees. To see if there’s a cost for the permit, check out our guide on Sales Tax Permit fees.
7. Understand Renewal Requirements: California resale certificates don’t have a formal expiration date, but they remain valid only while your Seller’s Permit is active and in good standing. Vendors may ask for updated certificates periodically, especially if they suspect any changes in your business’s registration.
To properly use your resale certificate in California for tax-exempt purchases, you must present a completed California General Resale Certificate (Form CDTFA-230) to your supplier at the time of purchase. This certificate serves as your documentation that the items you’re buying are intended for resale in the regular course of business.
To be valid, your certificate must include all of the following information:
California does not accept resale certificates issued by other states. If you are an out-of-state buyer wishing to make purchases for resale within California, you must register for a California Seller’s Permit and use a California resale certificate when purchasing from California vendors.
While California requires resale certificates to be accepted in good faith, this only applies to California-issued resale certificates. As a seller, if you’re given a resale certificate, ensure that:
For more details, visit the California Department of Tax and Fee Administration (CDTFA) website or refer to Publication 103 – Sales for Resale.
A multi-jurisdictional resale certificate is a standardized form designed to simplify tax-exempt purchases for businesses that operate and make purchases for resale across state lines.
Unlike a standard resale certificate issued by a single state, a multi-jurisdictional certificate aims to be recognized and accepted by multiple states as valid proof that the goods being purchased are intended for resale and are therefore exempt from sales tax at the time of purchase.
However, it’s crucial to understand that not all states accept these multi-state forms, and acceptance can come with specific conditions.
In California, here are the main multi-jurisdictional resale certificates and how they apply:
Businesses need to verify whether California accepts these multi-jurisdictional certificates and if there are any specific requirements or limitations on their use within the state. This is to avoid any audit issues.
If you’re using a California resale certificate (Form CDTFA-230), it’s your responsibility to ensure it’s used only for purchases of tangible goods that you intend to resell in the regular course of business. Using it for personal consumption or business operations (such as office supplies, equipment, or giveaways) is illegal and may result in significant penalties.
California does not automatically accept out-of-state resale certificates. Without a California Seller’s Permit or proper justification, the vendor may be required to charge sales tax.
As a seller in California, accepting a resale certificate comes with the responsibility of verifying and retaining proper documentation for tax-exempt sales. You must:
Keep records for at least 4 years: Your properly completed resale certificate proves why you didn’t collect sales tax. If you’re audited, keep all records for the audit period until it ends, even if that means storing them for more than four years.
Yes. Misusing a resale certificate, such as using it for personal items or non-resale purposes, is illegal in California. Penalties include:
The California General Resale Certificate (Form CDTFA-230) does not have a set expiration date. However, it is only valid while the purchaser’s California Seller’s Permit is active and in good standing. If the permit is revoked, canceled, or inactive, the certificate becomes invalid.
To confirm that a buyer’s resale certificate is valid:
You don’t have to complicate managing sales tax compliance and resale certificates in California. TaxHero simplifies the process, from keeping your California Sales Tax Permit active to ensuring you use resale certificates correctly.
Save time. Avoid penalties. Stay compliant.
Schedule a Demo to see how TaxHero can streamline your resale certificate in California process today!
If you run an Ecommerce or CPG business in Massachusetts, securing a resale certificate can protect your margins. It also helps streamline operations.
This certificate lets you buy inventory and raw materials tax-free. It reduces upfront costs, supports competitive pricing, and helps you stay compliant with Massachusetts sales tax laws.
In Massachusetts, a Form ST-4 Sales Tax Resale Certificate is a document issued by the Massachusetts Department of Revenue that allows businesses to:
Resale certificates prevent double taxation by eliminating sales tax at the wholesale stage before goods reach the end consumer.
However, a Massachusetts resale certificate does not exempt all purchases from sales tax. Businesses remain responsible for collecting and remitting sales tax on taxable retail sales to end consumers. Vendors must fill out the certificate properly, accept it in good faith, and retain it in their tax records.
Obtaining a resale certificate in Massachusetts offers several significant advantages for businesses that purchase goods for resale.
Here are some key benefits:
In Massachusetts, the specific form required for a resale certificate is Form ST-4, Sales Tax Resale Certificate.
The purchaser must include their Massachusetts Sales Tax Registration Number on Form ST-4. This proves they are registered with the Department of Revenue and allowed to make tax-exempt resale purchases.
A Massachusetts Sales Tax Permit authorizes your business to collect and remit sales tax on taxable sales to customers. A Massachusetts Resale Certificate (REV-1220), on the other hand, allows you to purchase goods tax-free from suppliers if those goods are intended for resale. To use a resale certificate, you must have an active sales tax permit.
Businesses that purchase goods for resale can use a Massachusetts Resale Certificate. To do so, the business must actively sell taxable tangible products and hold a valid Massachusetts Sales Tax Permit.
Getting a resale certificate in Massachusetts is simple, but you’ll need to meet a few key requirements first. Here’s how to do it:
1. Make Sure You’re Eligible: Your business must sell taxable goods or services in Massachusetts and be registered with the Massachusetts Department of Revenue (DOR). Only businesses with a valid Massachusetts Sales Tax Registration Certificate (sometimes called a Sales Tax Permit) can use a resale certificate.
2. Get a Massachusetts Sales Tax Permit: If you don’t already have one, you must apply for a Massachusetts Sales Tax Registration Certificate through MassTaxConnect on the DOR website. You must obtain a Massachusetts Sales Tax Permit before issuing or using a resale certificate.
Need help? Read our blog: How to Get a Seller’s Permit in Massachusetts
3. Gather Your Business Information: You’ll need basic business details to complete the resale certificate, including:
4. Complete Form ST-4: Download and fill out the Massachusetts Sales Tax Resale Certificate (Form ST-4) from the Massachusetts DOR website. You’ll present this form to your suppliers when making tax-exempt purchases for resale.
5. Submission: There is no need to submit the resale certificate to the state. Instead, give the completed Form ST-4 directly to your suppliers when purchasing items for resale. Your supplier keeps the form in their tax records.
6. Pay Any Applicable Fees: There’s no cost to obtain or use Form ST-4 itself. However, registering for a Massachusetts Sales Tax Registration Certificate is also free. Depending on your city or town, you might need a separate local business license, which can have a fee. To see if there’s a cost for the permit, check out our guide on Sales Tax Permit fees.
7. Understand Renewal Requirements: Massachusetts usually honors your resale certificate (Form ST-4) for 10 years. However, it only stays valid while your sales tax registration remains active and in good standing. If your sales tax registration is canceled, becomes inactive, or if the ST-4 reaches its 10-year expiration, your resale certificate becomes invalid. You should ensure both your sales tax registration remains current and that you issue updated ST-4 forms to your suppliers as needed, especially after 10 years.
The state usually initiates the renewal of your permit no less than every 5 years. A supplier may also request an updated certificate if their records are outdated or after their retention period (typically 4 years).
To use your resale certificate, present a valid, signed Form ST-4 to your supplier during the purchase. This allows you to claim tax exemption.
Massachusetts does not accept resale certificates issued by other states. If you’re an out-of-state business, you must register for a Massachusetts sales tax permit and use Form ST-4 to claim resale exemption when purchasing from a Massachusetts vendor.
For more information regarding sales tax exemption laws in Massachusetts, you may visit the state’s website.
States designed the multi-jurisdictional resale certificate to simplify tax-exempt purchases for businesses that operate and make purchases for resale across state lines.
Unlike a standard resale certificate issued by a single state, a multi-jurisdictional certificate aims to be recognized and accepted by multiple states as valid proof that the goods being purchased are intended for resale and are therefore exempt from sales tax at the time of purchase.
However, it’s crucial to understand that not all states accept these multi-state forms, and acceptance can come with specific conditions.
For Massachusetts:
Businesses must confirm that their resale certificates meet Massachusetts-specific requirements. If you use an out-of-state or multi-jurisdictional form, the state may deny your tax exemptions or issue audit assessments.
If you’re using a Massachusetts resale certificate, you’re responsible for ensuring it’s used only for purchases of goods or services you intend to resell. Using it for personal or operational items (like office supplies or equipment) is illegal and can lead to penalties, including assessments for unpaid tax, interest, fines, and possible criminal charges under Massachusetts law.
Massachusetts-based buyers:
Out-of-state buyers:
Take note that you can’t use the REV-1220 for sales tax exemption on vehicle purchases or registrations.
As a seller in Massachusetts, accepting a resale certificate comes with the responsibility of verifying and retaining proper documentation for tax-exempt sales. You must:
Keep records for at least 3 years: A resale certificate you’ve properly completed serves as your official proof for not collecting sales tax. You must retain it in your records for at least three years from the date the related sales tax return was filed or due, whichever is later, in case of a sales tax audit by the Massachusetts Department of Revenue. Note that the Department may audit records for up to six years in cases of substantial understatement of tax.
Yes. If you misuse a Massachusetts resale certificate, you may face serious penalties. Penalties can include repayment of unpaid taxes with interest, additional fines, and even criminal charges for willful misuse.
According to Massachusetts General Laws Chapter 62C, §73 and guidance from the Department of Revenue, intentional misuse can lead to criminal tax evasion penalties of up to one year in prison and fines of up to $10,000 for individuals or $50,000 for corporations. It’s critical to use Form ST-4 correctly and only for legitimate resale purchases to avoid these issues.
Form ST-4 doesn’t expire, but it remains valid only while your Massachusetts Sales Tax Registration stays active and in good standing. If the buyer’s sales tax account becomes inactive, is revoked, or closed, their resale certificate automatically becomes invalid. Vendors should request an updated certificate if they become aware of changes in a buyer’s registration status to remain compliant.
To confirm a Massachusetts resale certificate, sellers should request a completed and signed Form ST-4 that includes the buyer’s Massachusetts Sales Tax Registration Number. Vendors can verify the buyer’s registration number by calling the Department of Revenue. Reach them at (617) 887-MDOR or 1-800-392-6089 for in-state calls.
If you have a MassTaxConnect account, you can also log in to confirm registration details online. Keeping a valid, properly filled-out ST-4 on file is essential because it serves as your proof of why you did not collect sales tax on the transaction and must be retained for at least three years in case of an audit.
You don’t have to complicate managing sales tax compliance and resale certificates in Massachusetts. TaxHero simplifies the process, from keeping your Massachusetts Sales Tax Permit active to ensuring you use resale certificates correctly.
Save time. Avoid penalties. Stay compliant.
Schedule a Demo to see how TaxHero can streamline your resale certificate in Massachusetts process today!
If you run an Ecommerce or CPG business in Tennessee, securing a Tennessee Resale Certificate is a smart move to protect your margins and streamline operations.
This certificate enables you to purchase inventory and raw materials tax-free, thereby reducing upfront costs, maintaining competitive pricing, and ensuring compliance with Tennessee sales tax laws.
In Tennessee, a Tennessee Sales and Use Tax Certificate of Resale, is a document issued by the Tennessee Department of Revenue that allows businesses to:
The purpose is to prevent double taxation once at the wholesale level and again at the point of retail sale.
However, a Tennessee resale certificate is not a blanket exemption from all sales tax obligations. Businesses are still required to collect and remit sales tax on taxable sales to end consumers.
Obtaining a resale certificate in Tennessee offers several significant advantages for businesses that purchase goods for resale.
Here are some key benefits:
In Tennessee, the specific form required for a resale certificate is the Tennessee Sales and Use Tax Certificate of Resale (Form RV-F1300701).
When filling out Form RV-F1300701, a purchaser must include their Tennessee sales tax account number to identify that they are registered with the Tennessee Department of Revenue and authorized to make tax-exempt purchases for resale.
A Tennessee Sales Tax Permit authorizes your business to collect and remit sales tax on taxable sales to customers. A Tennessee Resale Certificate (name of form), on the other hand, allows you to purchase goods tax-free from suppliers if those goods are intended for resale. To use a resale certificate, you must have an active sales tax permit.
Businesses that purchase goods for resale can use a Tennessee Resale Certificate. To do so, the business must actively sell taxable tangible products and hold a valid Tennessee Sales Tax Permit
1. Make Sure You’re Eligible: Your business must sell taxable goods or services in Tennessee and be registered with the Tennessee Department of Revenue. Only businesses with a valid Tennessee Sales Tax Account Number can use a resale certificate.
2. Get a Tennessee Sales Tax Permit: If you don’t already have one, you need to register for a Tennessee sales tax account through the Tennessee Taxpayer Access Point (TNTAP) provided by the Tennessee Department of Revenue. This permit is required before you can issue or use a resale certificate.
Need help? Read our blog: How to Get a Seller’s Permit in Tennessee
3. Gather Your Business Information: You’ll need basic business details to complete the resale certificate, including:
4. Complete form RV-F1300701: Download and fill out the official Tennessee Sales and Use Tax Certificate of Resale (Form RV-F1300701) directly from the Tennessee Department of Revenue website. You’ll provide this completed form to your suppliers when making tax-exempt purchases.
5. Submission: Tennessee does not require you to submit the resale certificate to the state. Instead, give the completed form directly to your suppliers when buying inventory or other resale items.
6. Pay Any Applicable Fees: There is no fee for using Form RV-F1300701 or for registering for a Tennessee sales tax permit. To determine whether your business requires this license and any associated costs, check with your local county clerk’s office or refer to the Tennessee Department of Revenue’s guidelines. In addition, to see if there’s a cost for the permit, check out our guide on Sales Tax Permit fees.
7. Understand Renewal Requirements: Tennessee resale certificates remain valid as long as your Tennessee sales tax account remains active and in good standing. If your sales tax account is closed or becomes invalid, your resale certificate becomes invalid as well. Unlike some states, Tennessee resale certificates do not expire on a set schedule, but you should provide updated certificates to suppliers if any business information changes.
To properly utilize your resale certificate in Tennessee when
To properly utilize your resale certificate in Tennessee when making tax-exempt purchases for resale, you’ll need to present a valid copy of your Tennessee Sales and Use Tax Resale Certificate to your supplier at the time of purchase.
Tennessee generally does accept resale certificates issued by other states. However, there might be specific conditions:
If you are an out-of-state business purchasing from a vendor in Tennessee and plan to use your home state’s resale certificate, be prepared to provide it at the time of purchase. It’s always a good idea to confirm the vendor’s policy on accepting out-of-state certificates beforehand.
For more information regarding sales tax exemption laws in Tennessee, you may visit the state’s website.
A multi-jurisdictional resale certificate is a standardized form designed to simplify tax-exempt purchases for businesses that operate and make purchases for resale across state lines. Unlike a standard resale certificate issued by a single state, a multi-jurisdictional certificate aims to be recognized and accepted by multiple states as valid proof that the goods being purchased are intended for resale and are therefore exempt from sales tax at the time of purchase.
However, it’s crucial to understand that not all states accept these multi-state forms, and acceptance can come with specific conditions.
There are two primary types of multi-jurisdictional resale certificates that a business operating in or selling to vendors in Tennessee might encounter:
Businesses should always confirm directly with their Tennessee vendors whether they will accept multi-jurisdictional certificates and ensure certificates are filled out completely and accurately. This is essential to avoid audit issues or sales tax liabilities.
If you’re using a Tennessee resale certificate, you’re responsible for ensuring it’s used only for purchases of goods or services you intend to resell. Using it for personal or operational items (like office supplies or equipment) is illegal and may lead to penalties.
As a seller in Tennessee, accepting a resale certificate comes with the responsibility of verifying and retaining proper documentation for tax-exempt sales. You must:
Yes. Tennessee law explicitly prohibits knowingly misusing a resale certificate. Using a certificate for purchases not intended for resale such as office supplies or equipment can trigger severe consequences:
The resale certificate (Form RV-F1300701) does not expire; however, it becomes invalid if the business location associated with the certificate is closed or if your Tennessee sales tax account is canceled. You should also update your resale certificate if your business information changes, such as name or address, to ensure it remains valid with your suppliers.
Resale certificates can be verified online using the Tennessee Taxpayer Access Point (TNTAP) Verification Tool.
To check the validity of a certificate:
You can also call the Tennessee Department of Revenue at 615-253-0600 or email them at revenue.support@tn.gov for assistance.
You don’t have to complicate managing sales tax compliance and resale certificates in Tennessee. TaxHero simplifies the process, from keeping your Tennessee Sales Tax Permit active to ensuring you use resale certificates correctly.
Save time. Avoid penalties. Stay compliant.
Schedule a Demo to see how TaxHero can streamline your resale certificate in Tennessee process today!
If you run an Ecommerce or CPG business in Ohio, securing an Ohio Resale Certificate is a smart move to protect your margins and streamline operations.
This certificate allows you to purchase inventory and raw materials tax-free, helping you lower upfront costs, stay competitive in pricing, and remain compliant with Ohio sales tax laws.
In Ohio, a Sales and Use Tax Blanket Exemption Certificate is a document issued by the Ohio Department of Taxation that allows businesses to:
The purpose is to prevent double taxation once at the wholesale level and again at the point of retail sale.
However, an Ohio resale certificate is not a blanket exemption from all sales tax obligations. Businesses are still required to collect and remit sales tax on taxable sales to end consumers.
Obtaining a resale certificate in Ohio offers several significant advantages for businesses that purchase goods for resale.
Here are some key benefits:
In Ohio, the specific form required for a resale certificate is the Ohio Sales and Use Tax Blanket Exemption Certificate (Form STEC B).
When filling out Form STEC B, a purchaser must include the vendor’s license number to identify that it is registered with the Ohio Department of Taxation and authorized to make tax-exempt purchases for resale.
An Ohio Sales Tax Permit authorizes your business to collect and remit sales tax on taxable sales to customers. An Ohio Resale Certificate (STEC B), on the other hand, allows you to purchase goods tax-free from suppliers if those goods are intended for resale. To use a resale certificate, you must have an active sales tax permit.
Businesses that purchase goods for resale can use an Ohio Resale Certificate. To do so, the business must actively sell taxable tangible products and hold a valid Ohio Sales Tax Permit.
Getting a resale certificate in Ohio is simple, but you’ll need to meet a few key requirements first. Here’s how to do it:
1. Make Sure You’re Eligible: Your business must sell taxable goods or services and be registered with the Ohio Department of Taxation. Only businesses with a valid Ohio Sales Tax Permit can use a resale certificate.
2. Get an Ohio Sales Tax Permit: If you don’t already have one, apply for an Ohio Sales Tax Permit through the Ohio Business Gateway website. This permit is required before you can issue or use a resale certificate.
Need help? Read our blog: How to Get a Seller’s Permit in Ohio
3. Gather Your Business Information: You’ll need basic business details to complete the resale certificate, including:
4. Complete Form STEC B: Download and fill out the Ohio Sales and Use Tax Blanket Exemption Certificate (Form STEC B) from the Ohio Department of Taxation website. You’ll also present this form to your suppliers when making tax-exempt purchases.
5. Submission: No submission required in Ohio. You don’t submit the resale certificate to the state. Instead, give the completed form directly to your suppliers when buying items for resale.
6. Pay Any Applicable Fees: There’s no cost to use Form STEC B, but you’ll need a valid Ohio Sales Tax Permit, which costs $25 to register. To see if there’s a cost for the permit, check out our guide on Sales Tax Permit fees.
7. Understand Renewal Requirements: Your Ohio resale certificate remains valid only while your Sales Tax Permit is active. To maintain your ability to make tax-exempt purchases for resale, you must renew your Ohio Sales Tax Permit as the state requires.
To properly utilize your resale certificate in Ohio when making tax-exempt purchases for resale, you’ll need to present a valid copy of your Ohio Sales and Use Tax Resale Certificate to your supplier at the time of purchase.
Ohio generally does accept resale certificates issued by other states. However, there might be specific conditions:
If you are an out-of-state business purchasing from a vendor in Ohio and plan to use your home state’s resale certificate, provide it at the time of purchase, often by completing an Ohio exemption form (STEC B or STEC U) with your out-of-state registration information.
It’s always a good idea to confirm the vendor’s policy on accepting out-of-state certificates beforehand.
For more information regarding sales tax exemption laws in Ohio, you may visit the state website.
A multi-jurisdictional resale certificate is a standardized form to simplify tax-exempt purchases for businesses that operate and make purchases for resale across state lines.
Unlike a standard resale certificate issued by a single state, a multi-jurisdictional certificate aims to be recognized and accepted by multiple states as valid proof that the goods being purchased are intended for resale and are therefore exempt from sales tax at the time of purchase.
However, it’s crucial to understand that not all states accept these multi-state forms, and acceptance can come with specific conditions.
There are two primary types of multi-jurisdictional resale certificates that a business operating in or selling to vendors in Ohio might encounter:
Businesses need to verify whether Ohio accepts these multi-jurisdictional certificates and if there are any specific requirements or limitations on their use within the state. This is to avoid any audit issues.
When you use an Ohio resale certificate, you must ensure it applies only to purchases of goods or services you intend to resell. However, using it for personal or operational items (like office supplies or equipment) is illegal and may lead to penalties.
As a seller in Ohio, accepting a resale certificate comes with the responsibility of verifying and retaining proper documentation for tax-exempt sales. You must:
<strong>Keep records for at least 4 years: Use a properly completed resale certificate as your official proof for not collecting sales tax. You must retain it in your records for at least four years in case of a sales tax audit by the Ohio Tax Commissioner.
Yes. Improper use of a resale certificate, such as using it for personal or non-resale purchases, can result in serious penalties. Always use Form STEC B correctly and only for qualified resale purchases to avoid issues.
The resale certificate (Form STEC B) has no expiration date. However, it is only valid while your Ohio Sales Tax Permit remains active. If your permit is revoked or inactive, your resale certificate becomes invalid.
If you’re a seller in Ohio, here’s how to validate a buyer’s resale certificate:
Managing sales tax compliance and resale certificates in Ohio doesn’t have to be complicated. TaxHero simplifies the process, from keeping your Ohio Sales Tax Permit active to ensuring you use resale certificates correctly.
Save time. Avoid penalties. Stay compliant.
Schedule a Demo to see how TaxHero can streamline your Ohio resale certificate process today!
Sales tax compliance outsourcing for business startups has become a strategic necessity, especially for Ecommerce and CPG companies. As tax rules grow more complex across states, handling compliance in-house can drain time, create risk, and distract your team from core growth activities.
As a founder, your time—and your team’s—is most valuable when focused on building products, engaging with customers, and driving revenue growth. While struggling to keep up with sales tax compliance can distract from these priorities, it doesn’t mean it isn’t important.
More than ever, states aggressively pursue audits and impose hefty penalties, where even a small mistake can cost thousands of dollars. That’s why outsourcing sales tax compliance from day one is a smart and essential conversation for every startup.
This guide covers everything you need to know about sales tax compliance outsourcing for business startups, what to look for in a partner, and how TaxHero makes the entire process seamless.
Ready to skip to the solution? Book a free TaxHero strategy call today
Sales tax compliance is the process of:
Sales Tax Compliance services encompass a complete spectrum of support where businesses get to transfer the administrative load of managing sales tax compliance.
The real value of a sales tax compliance service does not only lie with using a transactional software tool but in getting easy access to sales tax experts and accountants who provide a dedicated service and specialized knowledge on sales tax compliance.
If you’re a startup, the right time to outsource your sales tax compliance is as soon as you start your business.
Embracing proactive outsourcing as early as the inception of your business ensures you continuously adhere to the ever-evolving regulations as your business grows.
The goal is to build a strong foundation of robust sales compliance early on.
But, what if you have not outsourced your sales tax compliance as soon as your business started?
In this case, the next best time for you to outsource is as soon as your business begins crossing multiple sales thresholds or expands your operations into various new states.
This can be triggered by:
If you want to learn more about this, you can read our guide to economic nexus.
Just to give you a better idea, the “right time” to outsource your sales tax compliance is fundamentally driven by the rate and nature of your business growth and geographic expansion. It doesn’t solely rely on your specific revenue milestone. Say, your business grows really quickly and you end up doing transactions in 10-20 states. This simply means that you’re also bound to manage sales tax compliance in these 10-20 states, making manual processes unsustainable and potentially at risk of errors. This only suggests that as you scale your transaction volume and your geographic reach, your sales tax compliance becomes more complicated.Specialized providers possess a deep expertise and knowledge of tax laws and regulations, making them the perfect people to monitor your sales tax compliance.
The risks and complexities of sales tax are real, but they don’t have to be your problem. By outsourcing to TaxHero, you gain peace of mind and strategic advantages. Discover how seamless sales tax compliance can be with TaxHero. Contact us today!
Achieving a successful sales tax compliance outsourcing with your chosen provider requires an actively managed partnership rather than a passive one.
Sales tax compliance outsourcing cannot just be a “set it and forget it” solution or a plug-and-play system. Here’s how you can create a collaborative relationship between your business and your provider:
TaxHero is purpose-built to solve the real-world challenges startups face, not just automate filings. Our approach goes beyond technical compliance to provide strategic, human-first support that grows with your business.
How do you future-proof your business?
The answer lies in your ability to secure your business’s growth trajectory. As your business grows in different states, so will your transaction volumes. As a result, sales tax compliance will only grow more complex.
But with a robust sales tax compliance team, you can:
Don’t DIY Your Taxes. Delegate to TaxHero. Startup life is chaotic enough. Let us take this off your plate. TaxHero handles compliance while you build your business. Get started today with a free consultation.
Businesses should avoid choosing a provider solely based on the lowest cost or the most popular (they were simply there first!). Startups should also consider the outsourcing provider’s systems and processes, which include data migration, system testing, and transition.
Sales tax compliance services are third-party providers that manage your end-to-end sales tax responsibilities—from nexus tracking to return filing—so you stay compliant and avoid costly penalties.
Absolutely. TaxHero uses industry-standard encryption and secure data practices to protect your business information at every step.
Every dollar counts for a startup. That’s why TaxHero offers a transparent, startup-friendly pricing tailored to fit your budget. Our all-inclusive service starts as low as $10/month, based on your order volume—no hidden fees, no onboarding costs, and no long-term contracts! Plus, we cap your maximum monthly expense to keep costs predictable. New clients receive a free nexus analysis, and we guarantee error-free service—if any penalties or interest arise due to our mistake, we cover them. Isn’t that great? Don’t just take our word for it—talk to our CEO today! And remember, if you have fewer than 50 orders a month, our service is free!
If you run an Ecommerce or CPG business in Florida, securing a Florida Resale Certificate is a smart move to protect your margins and streamline operations.
This certificate allows you to purchase inventory and raw materials tax-free, helping you lower upfront costs, stay competitive in pricing, and remain compliant with Florida sales tax laws.
In Florida, an Annual Resale Certificate (Form DR-13) is a document issued by the Florida Department of Revenue that allows businesses to:
The purpose is to prevent double taxation, which is once at the wholesale level and again at the point of retail sale.
However, a resale certificate is not a blanket exemption from all sales tax obligations. Businesses are still required to collect and remit sales tax on taxable sales to end consumers.
Obtaining a resale certificate in Florida offers several significant advantages for businesses that purchase goods for resale.
Here are some key benefits:
In Florida, the specific form required for a resale certificate is the Form DR-13. However, the state typically refers to it as the “Annual Resale Certificate” in its government pages.
When filling out the Annual Resale Certificate, a purchaser must include their Florida taxpayer number to identify that it is registered with the FL Department of Revenue and authorized to make tax-exempt purchases for resale.
A Florida Sales Tax Permit authorizes your business to collect and remit sales tax on taxable sales to customers. A Florida Resale Certificate (Annual Resale Certificate), on the other hand, allows you to purchase goods tax-free from suppliers if those goods are intended for resale. To use a resale certificate, you must have an active sales tax permit.
Businesses that purchase goods for resale can use a Florida Resale Certificate. To do so, the business must actively sell taxable tangible products and hold a valid Florida Sales Tax Permit.
Getting a resale certificate in Florida is simple, but you’ll need to meet a few key requirements first. Here’s how to do it:
1. Make Sure You’re Eligible: Your business must sell taxable goods or services and be registered with the FL Department of Revenue website. Only businesses with a valid Florida Sales Tax Permit can use a resale certificate.
2. Get a Florida Sales Tax Permit: If you don’t already have one, apply for a Florida Sales Tax Permit through the FL Department of Revenue website. You can only download and print the Annual Resale Certificate by logging into your FL Sales and Use Tax account. Therefore, having an account is necessary.
You can also use your certificate number and business partner number to log in and download the Annual Resale Certificate form. Those numbers can be found on the front and back of your Certificate of Registration after Florida approves your business’s application.
Need help? Read our blog: How to Get a Seller’s Permit in Florida
3. Gather Your Business Information: You’ll need basic business details to complete the resale certificate, including:
4. Complete the Annual Resale Certificate: Download and fill out the Florida Annual Resale Certificate (Form DR-13) from the FL Department of Revenue’s website. Note that you can’t download the form without logging in.
You’ll present this form to your suppliers when making tax-exempt purchases. You do not need a signature on the Annual Resale Certificate (Form DR-13) itself, as presenting the certificate or its number certifies that you will resell or re-rent the items purchased.
5. Submission: No submission required in Florida. You don’t submit the resale certificate to the state. Instead, give the completed form directly to your suppliers when buying items for resale.
6. Pay Any Applicable Fees: There’s no cost to use the Annual Resale Certificate. However, you’ll need a valid Florida Sales Tax Permit. To see if there’s a cost for the permit, then you can check out our guide on Sales Tax Permit fees.
7. Understand Renewal Requirements: The name of the form matches its validity period. That means the Annual Resale Certificate expires on the last day of the year. Regardless, active and registered businesses in Florida will automatically receive a new Annual Resale Certificate each year.
This means you must maintain your Florida Sales Tax Permit, otherwise, you’ll lose access to the state’s resale certificate.
To properly utilize your resale certificate in Florida when making tax-exempt purchases for resale, you’ll need to present a valid copy of your Florida Annual Resale Certificate to your supplier at the time of purchase.
Florida does not accept resale certificates issued by other states.
Instead, out-of-state businesses have the option to either:
The declaration should include details such as:
To ensure a smooth transaction, it’s best to contact and inquire with your suppliers ahead of time. Overall, this practice may also help prevent potential audit issues.
For more information regarding out-of-state resale regulations in Florida, you may read the state’s official guidelines.
A standardized multi-jurisdictional resale certificate simplifies tax-exempt purchases for businesses that operate and make purchases for resale across state lines.
Unlike a standard resale certificate issued by a single state, a multi-jurisdictional certificate aims to be recognized and accepted by multiple states as valid proof that the goods being purchased are intended for resale and are therefore exempt from sales tax at the time of purchase.
However, it’s crucial to understand that not all states accept these multi-state forms, and acceptance can come with specific conditions.
Generally, there are two primary types of multi-jurisdictional resale certificates that a business operating in or selling to vendors in Florida might encounter:
For a seamless transaction, it’s best to verify which form your Florida suppliers prefer. This also helps prevent any audit issues.
You are responsible for ensuring that you use a Florida resale certificate only for purchases of goods or services you intend to resell. Using it for personal or operational items (like office supplies or equipment) is illegal and may lead to penalties.
Multistate Tax Commission (MTC) Uniform Sales & Use Tax Resale Certificate: Florida sellers may accept the MTC Uniform Sales & Use Tax Resale Certificate from out-of-state purchasers. However, the selling Florida dealer is still required to verify the exemption by obtaining a transaction or vendor authorization number directly from the Florida Department of Revenue using the purchaser’s sales tax registration information.
As a seller in Florida, accepting a resale certificate comes with a variety of responsibilities. Such as verifying and retaining proper documentation for tax-exempt sales. Additionally, you must also:
Keep records for at least 3 years: A properly completed resale certificate is your official proof of why sales tax wasn’t collected. You must retain it in your records for at least 3 years in case of a sales tax audit by the FL Department of Revenue.
In Florida, there are 3 methods to document your transactions better:
Yes. Intentionally misusing an Annual Resale Certificate is subject to civil and criminal penalties. Committing resale fraud leads to a 3rd degree felony with a 200% penalty. Discover more sales tax penalties via the Florida Legislature.
The Annual Resale Certificate (Form DR-13) expires annually on the last day of the year. However, as long as you register and keep your business active in Florida, you’ll automatically receive a new form every year.
To validate an Annual Resale Certificate in Florida, there are 3 ways:
You don’t have to complicate managing sales tax compliance and resale certificates in Florida. TaxHero simplifies the process. From keeping your Florida Sales Tax Permit active to ensuring you use resale certificates correctly.
Save time. Avoid penalties. Stay compliant.
Schedule a Demo to see how TaxHero can streamline your resale certificate in Florida process today!
If you run an Ecommerce or CPG business in Nevada, securing a Nevada Resale Certificate is a smart move to protect your margins and streamline operations.
This certificate enables you to purchase inventory and raw materials tax-free, thereby reducing upfront costs, maintaining competitive pricing, and ensuring compliance with Nevada sales tax laws.
In Nevada, a TAX-F005 Resale Certificate is a document issued by the Nevada Department of Taxation that allows businesses to:
The purpose is to prevent double taxation—once at the wholesale level and again at the point of retail sale.
However, a resale certificate is not a blanket exemption from all sales tax obligations. Businesses must collect and remit sales tax on taxable sales to end consumers.
Obtaining a resale certificate in Nevada offers several significant advantages for businesses that purchase goods for resale.
Here are some key benefits:
In Nevada, the specific form required for a resale certificate is the TAX-F005.
The purchaser must include their Nevada Taxpayer ID Number on Form TAX-F005 to confirm registration with the Nevada Department of Taxation and authorization for tax-exempt resale purchases.
A Nevada Sales Tax Permit authorizes your business to collect and remit sales tax on taxable sales to customers. On the other hand, you can use a Nevada Resale Certificate to buy goods tax-free from suppliers if you plan to resell them. To use a resale certificate, you must have an active sales tax permit.
Businesses that purchase goods for resale can use a Nevada Resale Certificate. To do so, the business must actively sell taxable tangible products and hold a valid Nevada Sales Tax Permit.
Getting a resale certificate in Nevada is simple, but you’ll need to meet a few key requirements first. Here’s how to do it:
1. Make Sure You’re Eligible: Your business must sell taxable goods or services and be registered with the Nevada Department of Taxation. Only businesses with a valid Nevada Sales Tax Permit can issue or use a resale certificate.
2. Get a Nevada Sales Tax Permit: If you don’t already have one, apply for a Nevada Sales and Use Tax Permit through the Nevada Department of Taxation. You must obtain this permit before you can legally issue or use a resale certificate.
Need help? Read our blog: How to Get a Seller’s Permit in Nevada
3. Gather Your Business Information: You’ll need basic business details to complete the resale certificate, including:
4. Complete Form TAX-F005: Download and fill out the Nevada Resale Certificate – Form TAX-F005 from the Nevada Department of Taxation’s website. You’ll present this completed form to suppliers when making tax-exempt purchases.
5. Submission: No submission required in Nevada. You don’t submit the resale certificate to the state. Instead, give the completed form directly to your suppliers when buying items for resale.
6. Pay Any Applicable Fees: There is no fee to use Form TAX-F005. However, you must maintain a valid Nevada Sales Tax Permit, which may have associated fees or renewal requirements. To see if there’s a cost for the permit, check out our guide on Sales Tax permit fees.
7. Understand Renewal Requirements: Your Nevada resale certificate remains valid only as long as your Sales Tax Permit is active and in good standing. You must renew your Sales Tax Permit as required by the Nevada Department of Taxation to continue making tax-exempt purchases.
To properly utilize your resale certificate in Nevada when making tax-exempt purchases for resale, you’ll need to present a completed copy of Nevada Form TAX-F005 to your supplier at the time of purchase.
Nevada does accept resale certificates issued by other states. To make tax-exempt purchases in Nevada, out-of-state businesses may present their home state’s resale certificate, as long as it includes all required details (buyer & seller info, description of goods, and a valid resale or sales tax permit number). Nevada vendors may accept these certificates in good faith without requiring Form TAX‑F005.
However, there are a few important guidelines:
If you are an out-of-state business purchasing from a vendor in Nevada, you may present your home state’s resale certificate, as long as it includes all required information (such as buyer and seller details, a valid sales tax permit number, and a description of the goods for resale).
If your certificate meets these conditions, you don’t need to register for a Nevada Sales Tax Permit or use Form TAX-F005. However, if your resale certificate is incomplete or not accepted in good faith by the vendor, they are legally required to collect Nevada sales tax at the point of sale.
A multi-jurisdictional resale certificate is a standardized form designed to simplify tax-exempt purchases for businesses that operate and make purchases for resale across state lines.
Unlike a standard resale certificate issued by a single state, a multi-jurisdictional certificate aims to be recognized and accepted by multiple states as valid proof that the goods being purchased are intended for resale and are therefore exempt from sales tax at the time of purchase.
However, it’s crucial to understand that not all states accept these multi-state forms, and acceptance can come with specific conditions.
There are two primary types of multi-jurisdictional resale certificates that a business operating in or selling to vendors in Nevada might encounter:
Businesses need to verify whether Nevada accepts these multi-jurisdictional certificates and if there are any specific requirements or limitations on their use within the state. This is to avoid any audit issues.
If you’re using a Nevada resale certificate, you’re responsible for ensuring it’s used only for purchases of goods or services you intend to resell. Using it for personal or operational items (like office supplies or equipment) is illegal and may lead to penalties.
As a seller in Nevada, accepting a resale certificate comes with the responsibility of verifying and retaining proper documentation for tax-exempt sales. You must:
Yes. Improper use of this certificate, such as using it for personal or non-resale purchases, is a misdemeanor offense under NRS 372.175. While Nevada doesn’t list fixed penalty amounts, violations may result in fines, interest, and possible criminal charges. Misuse can also lead to revocation of your seller’s permit and audit assessments.
The resale certificate in Nevada does not have a set expiration date. It remains valid as long as the associated Nevada Sales and Use Tax Permit is active and in good standing. If the state revokes, suspends, or closes your permit, your resale certificate becomes invalid.
If you’re a seller in Nevada, you can verify a buyer’s resale certificate by:
Proper verification helps protect your business during audits and ensures compliance with Nevada sales tax law.
Managing sales tax compliance and resale certificates in Nevada doesn’t have to be complicated. TaxHero simplifies the process—from keeping your Nevada Sales Tax Permit active to ensuring you use resale certificates correctly.
Save time. Avoid penalties. Stay compliant.
Schedule a Demo to see how TaxHero can streamline your resale certificate in Nevada process today!
If you run an Ecommerce or CPG business in Pennsylvania, securing a Pennsylvania Resale Certificate is a smart move to protect your margins and streamline operations.
This certificate allows you to purchase inventory and raw materials tax-free, helping you lower upfront costs, stay competitive in pricing, and remain compliant with Pennsylvania sales tax laws.
In Pennsylvania, an Exemption Certificate (REV-1220) is a document issued by the Pennsylvania Department of Revenue that allows businesses to:
The purpose is to prevent double taxation—once at the wholesale level and again at the point of retail sale.
However, a resale certificate is not a blanket exemption from all sales tax obligations. Businesses are still required to collect and remit sales tax on taxable sales to end consumers.
Obtaining a resale certificate in Pennsylvania offers several significant advantages for businesses that purchase goods for resale.
Here are some key benefits:
In Pennsylvania, the specific form required for a resale certificate is the REV-1220.
When filling out the REV-1220, a purchaser must include their Pennsylvania taxpayer number to identify that it is registered with the Department of Revenue and authorized to make tax-exempt purchases for resale.
A Pennsylvania Sales Tax Permit authorizes your business to collect and remit sales tax on taxable sales to customers. A Pennsylvania Resale Certificate (REV-1220), on the other hand, allows you to purchase goods tax-free from suppliers if those goods are intended for resale. To use a resale certificate, you must have an active sales tax permit.
Businesses that purchase goods for resale can use a Pennsylvania Resale Certificate. To do so, the business must actively sell taxable tangible products and hold a valid Pennsylvania Sales Tax Permit.
Note that your Pennsylvania Sales Tax Permit number also acts as your Sales Tax Exemption Number. This number is required when filling out the REV-1220.
1. Make Sure You’re Eligible: Your business must sell taxable goods or services and be registered with the PA Department of Revenue. Only businesses with a valid Pennsylvania Sales Tax Permit can use a resale certificate.
2. Get a Pennsylvania Sales Tax Permit: If you don’t already have one, apply for a Pennsylvania Sales Tax Permit through the PA Department of Revenue website. This permit is required before you can issue or use a resale certificate.
Need help? Read our blog: How to Get a Seller’s Permit in Pennsylvania
3. Gather Your Business Information: You’ll need basic business details to complete the resale certificate, including:
4. Complete the REV-1220: Download and fill out the Pennsylvania Exemption Certificate (REV-1220) from the PA Department of Revenue’s website. You’ll present this form to your suppliers when making tax-exempt purchases.
5. Submission: No submission required in Pennsylvania. You don’t submit the resale certificate to the state. Instead, give the completed form directly to your suppliers when buying items for resale.
6. Pay Any Applicable Fees: There’s no cost to use the REV-1220. However, you’ll need a valid Pennsylvania Sales Tax Permit. To see if there’s a cost for the permit, check out our guide on Sales Tax Permit fees.
7. Understand Renewal Requirements: Your Pennsylvania resale certificate remains valid only while your Sales Tax Permit is active. To maintain your ability to make tax-exempt purchases for resale, you must renew your Pennsylvania Sales Tax Permit as the state requires.
Renewal of your permit is typically initiated by the state no less than every 5 years. A supplier may also request an updated certificate if their records are outdated or after their retention period (typically 4 years).
To properly utilize your resale certificate in Pennsylvania when making tax-exempt purchases for resale, you’ll need to present a valid copy of your Pennsylvania Sales and Use Tax Exemption Certificate (REV-1220) to your supplier at the time of purchase.
Pennsylvania generally accepts valid resale certificates issued by other states. However, out-of-state buyers are typically required to fill out the Pennsylvania Exemption Certificate (REV-1220).
Here are other conditions you may need to meet as an out-of-state buyer purchasing from a seller in Pennsylvania if you want to be exempted from paying sales tax:
For more information regarding sales tax exemption laws in Pennsylvania, you may read the state’s official guidelines.
A standardized multi-jurisdictional resale certificate simplifies tax-exempt purchases for businesses that operate and make purchases for resale across state lines.
Unlike a standard resale certificate issued by a single state, a multi-jurisdictional certificate aims to be recognized and accepted by multiple states as valid proof that the goods being purchased are intended for resale and are therefore exempt from sales tax at the time of purchase.
However, it’s crucial to understand that not all states accept these multi-state forms, and acceptance can come with specific conditions.
There are two primary types of multi-jurisdictional resale certificates that a business operating in or selling to vendors in Pennsylvania might encounter:
As stated in the MTC’s official form, Pennsylvania accepts its multi-jurisdictional resale certificate.
However, buyers must still inquire with their suppliers whether they’ll accept these alternative forms or not. This ensures a seamless transaction and avoids potential audit issues.
You are responsible for ensuring that you use a Pennsylvania resale certificate only for purchases of goods or services you intend to resell. Using it for personal or operational items (like office supplies or equipment) is illegal and may lead to penalties.
Take note that you can’t use the REV-1220 for sales tax exemption on vehicle purchases or registrations.
As a seller in Pennsylvania, accepting a resale certificate comes with a variety of responsibilities. Such as verifying and retaining proper documentation for tax-exempt sales. Other than that, you must also:
Keep records for at least 4 years: A properly completed resale certificate is your official proof of why sales tax wasn’t collected. You must retain it in your records for at least four years in case of a sales tax audit by the PA Department of Revenue.
Yes. The improper use of a Pennsylvania resale certificate leads to a misdemeanor charge. This may result in 1 year imprisonment and/or a fine not exceeding $1,000. Learn more via the Pennsylvania Code.
The resale certificate (REV-1220) has no expiration date. However, it is only valid while your Pennsylvania Sales Tax Permit remains active.
There is no online verification method for a Pennsylvania resale certificate. While you may accept the buyer’s PA sales tax account number on the REV-1220, Pennsylvania does not provide a public online portal for direct validation of individual sales tax permit numbers. For additional verification, you must contact the PA Department of Revenue. For additional verification, you must contact the PA Department of Revenue.
You don’t have to complicate managing sales tax compliance and resale certificates in Pennsylvania. TaxHero simplifies the process—from keeping your Pennsylvania Sales Tax Permit active to ensuring you use resale certificates correctly.
Save time. Avoid penalties. Stay compliant.
Schedule a Demo to see how TaxHero can streamline your resale certificate in Pennsylvania process today!
If you run an Ecommerce or CPG business in Georgia, securing a Georgia Resale Certificate is a smart move to protect your margins and streamline operations.
This certificate allows you to purchase inventory and raw materials tax-free, helping you lower upfront costs, stay competitive in pricing, and remain compliant with Georgia sales tax laws.
In Georgia, a Sales Tax Certificate of Exemption is a document issued by the Georgia Department of Revenue that allows businesses to:
The purpose is to prevent double taxation once at the wholesale level and again at the point of retail sale.
However, a Georgia resale certificate is not a blanket exemption from all sales tax obligations. Businesses are still required to collect and remit sales tax on taxable sales to end consumers.
Obtaining a resale certificate in Georgia offers several significant advantages for businesses that purchase goods for resale.
Here are some key benefits:
In Georgia, the specific form required for a resale certificate is the Georgia Sales Tax Certificate of Exemption (Form ST-5).
When filling out Form ST-5, the purchaser must include their Georgia taxpayer number to show they’re registered with the Georgia Department of Revenue and authorized to make tax-exempt purchases for resale.
A Georgia Sales Tax Permit authorizes your business to collect and remit sales tax on taxable sales to customers. A Georgia Resale Certificate (Form ST-5), on the other hand, allows you to purchase goods tax-free from suppliers if those goods are intended for resale. To use a resale certificate, you must have an active sales tax permit.
Businesses that purchase goods for resale can use a Georgia Resale Certificate. To do so, the business must actively sell taxable tangible products and hold a valid Georgia Sales Tax Permit.
Getting a resale certificate in Georgia is simple, but you’ll need to meet a few key requirements first. Here’s how to do it:
1. Make Sure You’re Eligible: Your business must sell taxable goods or services and be registered with the Georgia Department of Revenue. Only businesses with a valid Georgia Sales Tax Permit can use a resale certificate.
2. Get a Georgia Sales Tax Permit: If you don’t already have one, apply for a Georgia Sales Tax Permit through the Georgia Department of Revenue website. This permit is required before you can issue or use a resale certificate.
Need help? Read our blog: How to Get a Seller’s Permit in Georgia
3. Gather Your Business Information: You’ll need basic business details to complete the resale certificate, including:
4. Complete Form ST-5: Download and fill out the Georgia Sales and Use Tax Resale Certificate (Form ST-5) from the Georgia Department of Revenue website. You’ll present this form to your suppliers when making tax-exempt purchases.
5. Submission: No submission required in Georgia. You don’t submit the resale certificate to the state. Instead, give the completed form directly to your suppliers when buying items for resale.
6. Pay Any Applicable Fees: There’s no cost to use Form ST-5, but you’ll need a valid Georgia Sales Tax Permit. To see if there’s a cost for the permit, check out our guide on Sales Tax Permit fees.
7. Understand Renewal Requirements: Your Georgia resale certificate remains valid only while your Sales Tax Permit is active. To maintain your ability to make tax-exempt purchases for resale, you must renew your Georgia Sales Tax Permit as the state requires.
To properly utilize your resale certificate in Georgia when making tax-exempt purchases for resale, you’ll need to present a valid copy of your Georgia Sales Tax Certificate of Exemption to your supplier at the time of purchase.
Georgia generally does accept resale certificates issued by other states. However, there might be specific conditions:
A multi-jurisdictional resale certificate is a standardized form to simplify tax-exempt purchases for businesses that operate and make purchases for resale across state lines.
Unlike a standard resale certificate issued by a single state, a multi-jurisdictional certificate aims to be recognized and accepted by multiple states as valid proof that the goods being purchased are intended for resale and are therefore exempt from sales tax at the time of purchase.
However, it’s crucial to understand that not all states accept these multi-state forms, and acceptance can come with specific conditions.
There are two primary types of multi-jurisdictional resale certificates that a business operating in or selling to vendors in Georgia might encounter:
Businesses need to verify whether Georgia accepts these multi-jurisdictional certificates and if there are any specific requirements or limitations on their use within the state. This is to avoid any audit issues.
When using a Georgia resale certificate, you must ensure it’s used only for purchases of goods or services you intend to resell. Using it for personal or operational items (like office supplies or equipment) is illegal and may lead to penalties.
As a seller in Georgia, accepting a resale certificate comes with the responsibility of verifying and retaining proper documentation for tax-exempt sales. You must:
Keep records for at least 3 years: A properly completed resale certificate serves as your official proof of why you didn’t collect sales tax. You must retain it in your records for at least three years in case of a sales tax audit by the Georgia Department of Revenue.
Yes. Misusing a resale certificate for business or personal consumption can lead to serious consequences, including audits, financial penalties (such as unpaid taxes, fines, and interest), and potential legal action or loss of business licenses.
It’s imperative to use resale certificates strictly for purchasing items intended for resale to end consumers.
The resale certificate (Form ST-5) has no expiration date. However, it is only valid while your Georgia Sales Tax Permit remains active. If your permit is revoked or inactive, your resale certificate becomes invalid.
If you’re a seller in Georgia, here’s how to validate a buyer’s resale certificate:
Do note that this tool only verifies Georgia Sales Tax Numbers. It does not verify state tax identification numbers, federal employer identification numbers, out-of-state sales tax numbers, or social security numbers.
Managing sales tax compliance and resale certificates in Georgia doesn’t have to be complicated. TaxHero simplifies the process, from keeping your Georgia Sales Tax Permit active to ensuring you use resale certificates correctly.
Save time. Avoid penalties. Stay compliant.
Schedule a Demo to see how TaxHero can streamline your Georgia resale certificate process today!
Starting a business in Maryland is an exciting venture, but it’s crucial to understand the legal requirements that come with it. This blog will guide you through each step of applying for a sales tax permit, with clear instructions to help you and your business begin collecting sales tax effortlessly. it. A common area of confusion for many new business owners is understanding the need for a Maryland Sales and Use Tax License, also known as a sales tax permit or seller’s permit. This permit allows you to collect sales tax on taxable products and services from customers in Maryland.
This blog will guide you through each step of applying for a sales tax permit, with clear instructions to help you and your business begin collecting sales tax effortlessly.
Related Topics:
A business must register for a sales tax permit in Maryland if:
When applying for a Maryland Sales and Use Tax License, you can use the online application process on the Comptroller of Maryland website to complete your registration.
The first step to register for a sales tax permit online is to go to Maryland Tax Connect. Click on “Register a Business in Maryland – Combined Registration Application” found in the “Quick Links” section.
You will see a pop-up box showing options for instructional user guides and tutorials you can use. To proceed, click on “Next.”
You will then follow through the prompts that walk you through your registration process and provide the necessary information. Once you’re done, a confirmation number will be generated for you and sent to your email. Save it for future reference.
To successfully acquire a seller’s permit in Maryland, it’s important to prepare and provide specific information and documents. The following is a list of the necessary information and documents required to register a sales tax permit in Maryland:
Registering for a sales tax permit in Maryland is free. You won’t need to provide payment details to acquire your permit.
Maryland sales tax permits do not need to be renewed and remain valid for as long as the business exists without any changes in ownership or structure.
After your online submission, you should receive a letter from the Comptroller of Maryland containing a PIN number which you will use to create a Maryland Tax Connect profile.
In the Quick Links section, click “Register for a Maryland Tax Connect Account” to sign up and create a username and password.
Afterward, fill out the user profile, and link your tax accounts using the PIN number and your FEIN or SSN to your newly created profile.
Once registered, the administrator of the account may now grant access to other authorized users to access their online tax accounts.
For a more comprehensive guide on how to register for a Seller’s permit in Maryland, you may visit their Business Registration Guide.
Obtaining a Sales Tax Certificate requires you to collect sales tax on eligible sales in Maryland. The document also specifies your filing frequency for sales tax returns and due dates.
Remember that if your business has a physical location in Maryland, the Seller’s Permit must be visibly displayed at all times at the place for which the certificate is issued.
If you ever encounter any difficulties, have any questions, or prefer TaxHero to manage these tasks on your behalf, don’t hesitate to reach out! Contact us today. Contact us today.
If you run an Ecommerce or CPG business in Michigan, securing a Michigan Resale Certificate is a smart move to protect your margins and streamline operations.
This certificate allows you to purchase inventory and raw materials tax-free, helping you lower upfront costs, stay competitive in pricing, and remain compliant with Michigan sales tax laws.
In Michigan, a Sales and Use Tax Certificate of Exemption is a document issued by the Michigan Department of Treasury that allows businesses to:
The purpose is to prevent double taxation once at the wholesale level and again at the point of retail sale.
However, a Michigan resale certificate is not a blanket exemption from all sales tax obligations. Businesses are required to collect and remit sales tax on taxable sales to end consumers.
Obtaining a resale certificate in Michigan offers several significant advantages for businesses that purchase goods for resale.
Here are some key benefits:
In Michigan, the specific form required for a resale certificate is the Michigan Sales and Use Tax Certificate of Exemption (Form 3372).
The Department does not issue tax exemption numbers. Sellers are not required to obtain a state-issued tax exemption number as evidence to verify if a buyer is eligible for a sales and use tax exemption.
A Michigan Sales Tax Permit authorizes your business to collect and remit sales tax on taxable sales to customers. A Michigan Resale Certificate (Form 3372), on the other hand, allows you to purchase goods tax-free from suppliers if those goods are intended for resale. To use a resale certificate, you must have an active sales tax permit.
Businesses that purchase goods for resale can use a Michigan Resale Certificate. To do so, the business must actively sell taxable tangible products and hold a valid Michigan Sales Tax Permit.
Getting a resale certificate in Michigan is simple, but you’ll need to meet a few key requirements first. Here’s how to do it:
1. Make Sure You’re Eligible: Your business must sell taxable goods or services and be registered with the Michigan Department of Treasury. Only businesses with a valid Michigan Sales Tax Permit can use a resale certificate.
2. Get a Michigan Sales Tax Permit: If you don’t already have one, apply for a Michigan Sales Tax Permit through the Michigan Department of Treasury website. This permit is required before you can issue or use a resale certificate.
Need help? Read our blog: How to Get a Seller’s Permit in Michigan
3. Gather Your Business Information: You’ll need basic business details to complete the resale certificate, including:
4. Complete Form 3372: Download and fill out the Michigan Sales and Use Tax Resale Certificate (Form 3372) from the Michigan Department of Treasury website. You’ll present this form to your suppliers when making tax-exempt purchases.
5. Submission: No submission required in Michigan. You don’t submit the resale certificate to the state. Instead, give the completed form directly to your suppliers when buying items for resale.
6. Pay Any Applicable Fees: There’s no cost to use Form 3372, but you’ll need a valid Michigan Sales Tax Permit. To see if there’s a cost for the permit, check out our guide on Sales Tax Permit fees.
7. Understand Renewal Requirements: A blanket resale certificate in Michigan remains valid for up to four years. Although it may expire sooner if a business does not make at least one purchase every 12 months for resale purposes.
To properly utilize your resale certificate in Michigan when making tax-exempt purchases for resale, you’ll need to present a valid copy of your Sales and Use Tax Certificate of Exemption to your supplier at the time of purchase.
Michigan generally does accept resale certificates issued by other states. However, there might be specific conditions:
If you are an out-of-state business purchasing from a vendor in Michigan and plan to use your home state’s resale certificate, be prepared to provide it at the time of purchase. It’s always a good idea to confirm the vendor’s policy on accepting out-of-state certificates beforehand.
For more information regarding sales tax exemption laws in Michigan, you may visit the state’s website.
A multi-jurisdictional resale certificate is a standardized form to simplify tax-exempt purchases for businesses that operate and make purchases for resale across state lines.
Unlike a standard resale certificate issued by a single state, a multi-jurisdictional certificate aims to be recognized and accepted by multiple states as valid proof that the goods being purchased are intended for resale and are therefore exempt from sales tax at the time of purchase.
However, it’s crucial to understand that not all states accept these multi-state forms, and acceptance can come with specific conditions.
There are two primary types of multi-jurisdictional resale certificates that a business operating in or selling to vendors in Michigan might encounter:
Businesses need to verify whether Michigan accepts these multi-jurisdictional certificates and if there are any specific requirements or limitations on their use within the state. This is to avoid any audit issues.
If you’re using a Michigan resale certificate, you’re responsible for ensuring it’s used only for purchases of goods or services you intend to resell. Using it for personal or operational items (like office supplies or equipment) is illegal and may lead to penalties.
As a seller in Michigan, accepting a resale certificate comes with the responsibility of verifying and retaining proper documentation for tax-exempt sales. You must:
When making exempt sales, sellers should always consult the relevant exemption statute to check for additional requirements. For example, in resale claims, sellers must collect the purchaser’s sales tax license number if they have one.
These steps ensure that exempt transactions are properly documented and legally compliant.
Recordkeeping Requirements: A properly completed Michigan Certificate of Exemption serves as your proof for not collecting sales tax on an exempt sale. Sellers must retain resale certificates and accurate transaction records, including those for online sales, for at least four years. If records aren’t maintained, the Department may issue tax assessments, presumed correct unless the seller proves otherwise.
Yes. Misusing a Michigan resale certificate for personal or business purposes is unlawful and may result in the assessment of tax, statutory penalties, and interest.
By signing Form 3372, the purchaser declares under penalty of perjury that they have consulted the applicable statutes and exercised reasonable care to ensure the exemption claim is valid under Michigan law. If the claim is later disallowed, the purchaser accepts full responsibility for any tax due, penalties, and interest, including reimbursement to the vendor if necessary.
Always use Form 3372 correctly and only for qualified resale purchases to avoid issues.
Michigan’s blanket resale certificates (Form 3372) allow buyers to make multiple tax-exempt purchases from the same seller over time. Their validity depends on how the certificate is established:
If you don’t expect recurring activity (i.e., more than 12 months between purchases), you can still use a blanket resale certificate. However, it must include a specified expiration date with a maximum validity of four years.
This structured setup offers flexibility while clearly outlining how long the exemption remains valid for both parties.
If you’re a seller in Michigan, here’s how to validate a buyer’s resale certificate:
Managing sales tax compliance and resale certificates in Michigan doesn’t have to be complicated. TaxHero simplifies the process, from keeping your Michigan Sales Tax Permit active to ensuring you use resale certificates correctly.
Save time. Avoid penalties. Stay compliant.
Schedule a Demo to see how TaxHero can streamline your Michigan resale certificate process today!
