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If you run an Ecommerce or CPG business in Minnesota, securing a Minnesota Resale Certificate is a smart move to protect your margins and streamline operations.

This certificate also allows you to purchase inventory, raw materials, or components that become an integral part of a product you ultimately sell tax-free, helping you lower upfront costs, stay competitive in pricing, and remain compliant with Minnesota sales tax laws.

Understanding Resale Certificates in Minnesota

What is a Minnesota Resale Certificate?

In Minnesota, a Certificate of Exemption (Form ST3) is a document issued by the Minnesota Department of Revenue that allows businesses to:

• Purchase goods without paying sales tax, provided these goods are intended for resale to their customers in the normal course of their business.
• Make tax-exempt purchases of inventory and materials that will become part of the products they sell by presenting a valid resale certificate to their suppliers.

The purpose is to prevent double taxation once at the wholesale level and again at the point of retail sale. 

However, a Minnesota 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.

Why do you need a Resale Certificate in Minnesota?

Obtaining a resale certificate in Minnesota offers several significant advantages for businesses that purchase goods for resale. 

Here are some key benefits:

• Avoid Paying Sales Tax on Inventory: The most direct benefit is that you can purchase inventory and materials for resale without paying Minnesota‘s sales tax upfront. 
• Maintain Competitive Pricing: By not paying sales tax on the cost of goods, businesses have more flexibility in setting competitive prices for products in the Minnesota market. This can be a crucial advantage, especially in price-sensitive industries.
• Legal Compliance: Using a valid resale certificate ensures compliance with Minnesota sales tax laws and helps avoid penalties like tax, interest, and fines.

In Minnesota, the specific form required for a resale certificate for multiple and recurring purchases is the Minnesota Certificate of Exemption (Form ST3).

When completing Form ST3, include your Minnesota Tax ID to show you’re registered and authorized for tax-exempt resale purchases.

Although you can list a Federal Employer Identification Number (FEIN), the Minnesota Tax ID is the standard for regular tax-exempt resale transactions.

Resale Certificate vs. Sales Tax Permit: What’s the Difference?

A Minnesota Sales Tax Permit authorizes your business to collect and remit sales tax on taxable sales to customers. A Minnesota Certificate of Exemption (Form ST3), 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.

Who Can Use a Resale Certificate in Minnesota?

Businesses that purchase goods for resale can use a Minnesota Resale Certificate. To do so, the business must actively sell taxable tangible products and hold a valid Minnesota Sales Tax Permit.

How to Get a Resale Certificate in Minnesota: A Step-by-Step Guide

Getting a resale certificate in Minnesota 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 Minnesota Department of Revenue. Only businesses with a valid Minnesota Sales Tax Permit can use a resale certificate.

2. Get a Minnesota Sales Tax Permit: If you don’t already have one, apply for a Minnesota Sales Tax Permit through the MN E-Services 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 Minnesota 

3. Gather Your Business Information: You’ll need basic business details to complete the resale certificate, including:

• Your legal name and business address
• Your Minnesota Tax ID Number (Sales and Use Tax Account Number). This is the primary identifier for businesses making purchases for resale
• Your Federal Employer Identification Number (FEIN) if you have one
• Your type of business
• Your reason for exemption which will be “Resale”
• Your authorized signature and date of issue

4. Complete the Form ST3: Download and fill out the Minnesota Certificate of Exemption (Form ST3) from the Minnesota Department of Revenue website. You’ll present this form to your suppliers when making tax-exempt purchases.

5. Submission: No submission required in Minnesota. 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 ST3, but you’ll need a valid Minnesota Sales Tax Permit.

7. Understand Renewal Requirements: While the Minnesota Certificate of Exemption (Form ST3) itself doesn’t specify an expiration date, it remains valid only as long as your sales tax permit is active and in good standing and the information on the certificate remains accurate. Suppliers may, however, periodically request an updated form to ensure their records are current. 

In addition, the Minnesota Department of Revenue recommends updating exemption certificates every three to five years. The Minnesota Sales Tax Permit stays valid if the business remains compliant and has no ownership or structural changes.

Registered retailers must stay current with sales tax filings and payments, and update suppliers if business or exemption details change. If there are any changes to your business details or exemption status, you should give your suppliers an updated Form ST3.

How to Use a Resale Certificate in Minnesota

To properly utilize your resale certificate in Minnesota when making tax-exempt purchases for resale, you’ll need to present a valid copy of your Minnesota Exemption Certificate to your supplier at the time of purchase.

Minnesota generally does accept resale certificates issued by other states. However, there might be specific conditions:

• Good Faith Acceptance: Vendors in Minnesota will typically accept an out-of-state resale certificate in good faith, provided it contains all the necessary information (buyer’s name, address, seller’s permit number from the issuing state, reason for exemption, etc.).
• Streamlined Sales Tax Agreement (SSTA): Minnesota is a member of the Streamlined Sales Tax Agreement (SSTA), allowing businesses to use a standardized exemption certificate for eligible purchases across participating states. This helps simplify multi-state sales tax compliance.
• Confirmation with Vendor: Before making a purchase, be sure to check with the vendor to confirm whether they accept out-of-state exemption certificates.

Multi-Jurisdictional Resale Certificates

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 Minnesota might encounter:

• Uniform Sales & Use Tax Resale Certificate – Multijurisdiction Form: This is a widely recognized form accepted by a significant number of states (though not all). Minnesota accepts this form, provided it is properly completed.
  For Minnesota-based buyers, it should include their Minnesota Sales Tax Identification number. Out-of-state purchasers should include either their state’s home state’s tax identification number, federal Employer Identification Number (EIN), or a valid state-issued driver’s license.
  You can find this form on the Multistate Tax Commission (MTC) website.
• Streamlined Sales Tax (SST) Certificate of Exemption: The state of Minnesota became a full member of the Streamlined Sales Tax on October 1, 2005. As such, it accepts the SST Certificate of Exemption for qualifying resale purchases. Businesses using either certificate must ensure they meet all Minnesota-specific requirements.
  You can find more information about the SST and its member states on the Streamlined Sales Tax Governing Board website.

Businesses need to verify whether Minnesota 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.

Responsibilities When Using or Accepting a Resale Certificate in Minnesota

Buyer Responsibilities

You are responsible for using a Minnesota resale certificate only for purchases of items or services you plan to resell. Using it for personal or operational items (like office supplies or equipment) is illegal and exposed to use tax liability, and may lead to additional tax, interest, and penalties.

• Minnesota-based buyers: Provide a fully completed Form ST3 to your suppliers for qualifying purchases.
• Out-of-state buyers: While Minnesota may prefer its own resale certificate form, Minnesota vendors will accept a valid resale certificate from your home state, under specific conditions, ensuring that tax-exempt purchases are properly documented and compliant with state regulations.
  You can also complete the Uniform Sales and Use Tax Certificate – Multijurisdiction Form or the Streamlined Sales Tax (SST) Certificate of Exemption instead of Form ST3.

Seller Responsibilities

As a seller in Minnesota, accepting a resale certificate comes with the responsibility of verifying and retaining proper documentation for tax-exempt sales. You must:

• Accept the certificate in good faith
• Ensure it includes all required information: buyer’s name, address, sales tax permit number (or equivalent), reason for exemption, and signature.
• Reject the certificate if the items aren’t for resale (e.g., personal or business use)

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 Minnesota Department of Revenue. Tax authorities recommend keeping sales tax records for at least 3.5 years from the return’s original due date.

Frequently Asked Questions About the Minnesota Resale Certificate

Are There Penalties for Misusing a Resale Certificate in this State?

Yes. Improper use of a resale certificate, such as using it for personal or non-resale purchases, can result in serious penalties. The state may fine anyone $100 per transaction for improperly using an exemption certificate to avoid paying sales tax. Additionally, the purchaser will be liable for any use tax, interest, and other applicable penalties on the uncollected tax.

Always use Form ST3 correctly and only for qualified resale purchases to avoid issues.

Does a Minnesota Resale Certificate Expire?

The Minnesota Certificate of Exemption doesn’t expire unless the information on the certificate changes. Form ST3 remains valid only while the buyer continues to resell the listed items. Though it doesn’t expire like a permit, the state recommends updating your certificate every 3 to 4 years.

How Do I Verify a Minnesota Resale Certificate?

If you’re a seller in Minnesota, online verification is not available. Here’s how to validate a buyer’s resale certificate:

1. Request and review a completed Form ST3 to ensure it’s filled out correctly and the purchase qualifies as a resale.
2. Use the form to verify by calling the Minnesota Department of Revenue.

How TaxHero Can Help

Managing sales tax compliance and resale certificates in Minnesota doesn’t have to be complicated. TaxHero simplifies the process, from keeping your Minnesota 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 Minnesota resale certificate process today!

If you run an Ecommerce or CPG business in South Dakota, securing a South Dakota 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 South Dakota sales tax laws

Understanding Resale Certificates in South Dakota

What is a South Dakota Resale Certificate?

In South Dakota, an Exemption Certificate is a document recognized by the South Dakota Department of Revenue (SDDOR) that businesses complete and present to their suppliers, allowing them to:

• Purchase goods without paying sales tax, provided these goods are intended for resale to their customers in the normal course of their business.
• Make tax-exempt purchases of inventory and materials that will become part of the products they sell by presenting a valid resale certificate to their suppliers.

The purpose is to prevent double taxation, first at the wholesale level and then again at the point of retail sale.

However, a South Dakota exemption certificate is not a blanket exemption from all sales tax obligations. Businesses must still collect and remit sales tax on taxable sales made to end consumers.

Why do you need a South Dakota Resale Certificate?

Obtaining an exemption certificate in South Dakota offers several significant advantages for businesses that purchase goods for resale.

Here are some key benefits:

• Avoid Paying Sales Tax on Inventory: The most direct benefit is purchasing inventory and materials that will be resold to customers without paying South Dakota’s sales tax upfront.
• Maintain Competitive Pricing: By not paying sales tax on the cost of goods, businesses have more flexibility in setting competitive prices for products in the South Dakota market. This can be a crucial advantage, especially in price-sensitive industries.
• Legal Compliance: Possessing and using a valid sales tax license and a properly completed exemption certificate for eligible purchases ensures businesses comply with South Dakota’s sales tax laws and regulations to avoid penalties.

In South Dakota, the specific form required for a resale certificate is the Form 2040.

To be specific, the South Dakota Form 2040 is a state-revised Streamlined Sales and Use Tax Certificate of Exemption. It may also be shortly referred to as “SST Exemption Certificate”.

When filling out the SST Exemption Certificate, purchasers must include their South Dakota tax ID number to identify that they’re registered with the SD DOR and authorized to make tax-exempt purchases for resale.

Unregistered out-of-state buyers without a nexus in South Dakota may provide their home state’s tax ID numbers instead. If they do not have a sales tax ID number from any state, the form instructions allow for the use of their Federal Employer Identification Number (FEIN). If they have neither, a driver’s license number may also be used.

Resale Certificate vs. Sales Tax Permit: What’s the Difference?

In South Dakota, “Sales Tax Permits” are preferably referred to as “Sales Tax Licenses.” This license permits you to remit sales tax on taxable sales to customers.

Meanwhile, the SST Exemption Certificate allows you to purchase goods tax-free from suppliers if those goods are intended for resale. To use this exemption certificate, you’re generally expected to have an active sales tax license.

If you’re not required to register (having no nexus) in South Dakota, using the SST Exemption Certificate is still allowed. However, you must meet specific qualifications as an out-of-state purchaser. This typically means providing your home state’s tax ID, FEIN, or another acceptable form of ID.

Who Can Use a Resale Certificate in South Dakota?

Businesses that purchase goods for resale can use a South Dakota SST Exemption Certificate. However, there are certain rules your business must follow to be eligible to use the SST Exemption Certificate.

Some businesses are generally required to have a Sales Tax License if they have a nexus in South Dakota. This rule is stated within South Dakota’s official tax laws and informational publications.

The following are South Dakota-based businesses that must have a Sales Tax License before using an exemption certificate:

• Manufacturers 
• Wholesalers 
• Retailers
• Lessors
• Service Providers

For businesses without a South Dakota sales tax license, see if the following options apply to you or your business.

• Out-of-State Buyers: Businesses not based in South Dakota that purchase taxable goods for resale can use the SST Exemption Certificate. However, the directions for its usage depend on your nexus standing with the state.
  • No Nexus: Having no nexus in South Dakota means you aren’t required to register with the state’s taxing authorities. Due to this, you may provide your home state’s tax ID number to complete the SST Exemption Certificate.
  • With Nexus: Having a nexus in South Dakota means you’re responsible for collecting and remitting sales tax. Thus, you’re required to register your business and hold a valid South Dakota Sales Tax License.
    To complete the SST Exemption Certificate form, you must provide a South Dakota tax ID or Sales Tax License number.
• Buyers Not Required to Register: This section applies to buyers from a state without sales tax or nexus in any state. Instead of providing a tax ID number, you can provide the following to use the SST Exemption Certificate:
  • Your FEIN number, 
  • State-issued Business ID Number or
  • Your Driver’s License number
• Dropshippers: If the purchased goods from a supplier are delivered directly to the customer, the transaction is considered drop shipping. South Dakota requires suppliers to collect and remit sales tax on these transactions unless the retailer provides a valid exemption certificate.
  Out-of-state retailers may use their home state’s tax ID when purchasing goods for resale from South Dakota suppliers. This applies only if the supplier accepts it and the retailer does not have nexus in South Dakota. If the out-of-state retailer has a South Dakota nexus, they must provide a South Dakota Sales Tax License number.
• Foreign Buyers: South Dakota is among the Streamlined Sales Tax Governing Board members that accept alternative IDs, such as VAT numbers. Foreign buyers may provide their VAT ID or any other equivalent when using the SST Exemption Certificate in South Dakota.
• Buyers Without Any Valid ID: In case you have no tax ID number, FEIN, VAT, or Driver’s License, South Dakota gives you an exception. In South Dakota, you may write “Not Required” and your reason for exemption in the SST Exemption Certificate.
  Note: While the state is permissive in such cases, beware that your exemption claim is still primarily under the seller’s approval. If you do not provide valid IDs, South Dakota vendors may decline your SST Exemption Certificate, even if you have completed it correctly.
• Agricultural Purchases: When purchasing goods or specific services solely for agricultural purposes, you’re entitled to South Dakota’s agricultural exemption. You do not need to provide any tax ID number. Regardless, the state recommends that you include other proper documents or IDs, such as your FEIN or Driver’s License, on the Certificate of Exemption.
  This is recommended for cases where your purchased goods are delivered to another state where such IDs may be required.

For other entities that may want to use the South Dakota SST Exemption Certificate, read all the exemptions allowed here.

How to Get a Resale Certificate in South Dakota: A Step-by-Step Guide

Getting an exemption certificate in South Dakota 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 South Dakota Department of Revenue if you have nexus in the state. Generally, businesses with a valid  South Dakota Sales Tax License can use the state’s exemption certificate with ease.

However, other businesses also qualify to use the Streamlined Sales and Use Tax Certificate of Exemption, as outlined in the previous section. To summarize, those qualified businesses are:

• Out-of-state retailers engaged in drop shipping
• Out-of-state buyers registered in their home state
• Foreign buyers with a valid VAT ID number or other equivalent
• Buyers without any valid tax ID, VAT, FEIN, or Driver’s License
• Buyers who purchase goods and services for agricultural purposes 
• Buyers from states without sales tax or that have no nexus in any state
• For more details, head back to the “Who Can Use a Resale Certificate in South Dakota?” section. You may also read South Dakota’s official tax laws and informational publications as a guide.

2. Get a South Dakota Sales Tax License: If you don’t already have one, apply for a South Dakota Sales Tax License through the SDDOR’s online Tax License Application page. This license is generally required for South Dakota-based businesses, especially the ones listed in the prior heading. 

Those specific businesses are manufacturers, retailers, wholesalers, lessors, service providers, and contractors. Out-of-state vendors that have a nexus in South Dakota must register for a Sales Tax License.

Need help? Read our blog: How to Get a Seller’s Permit in South Dakota

3. Buyers Without a South Dakota Sales Tax License: As mentioned, not all businesses are required to have a South Dakota Sales Tax License. As long as you have no sales tax nexus in South Dakota, you have no reason to register in the state.

In this case, you can provide other documents to get and complete the SST Exemption Certificate. However, the requirements vary depending on your business.

• Out-of-state buyers with no South Dakota nexus: Provide your home state’s sales tax ID number.
• Buyers not required to register (or come from a state without sales tax): Provide either another state’s tax ID number, your FEIN, or your Driver’s License number. VAT ID numbers may also be accepted.
• Foreign buyers: Provide a valid VAT ID (or any equivalent from your home country).
• Buyers without any valid ID: If you have no FEIN, VAT, tax ID number, or Driver’s License, write “Not Required” in the SST Exemption Certificate. You must detail the reason for your exemption. However, South Dakota vendors may request additional documents to verify that you qualify for the resale sales tax exemption.

4. Gather Your Business Information: You’ll need basic business details to complete the resale certificate, including:

• Your business legal name and any trade names.
• Your business address and contact information.
• Your Federal Employer Identification Number (FEIN) or Social Security Number (SSN) if you’re a sole proprietor.
• Your reason for exemption.
• Your home state’s tax ID number (for out-of-state buyers).
• Your South Dakota sales tax license number (if already obtained).
• Your driver’s license or VAT ID number (for qualified buyers without tax ID numbers).
• Your business type (e.g., sole proprietorship, LLC, corporation).

5. Complete the Streamlined Sales and Use Tax Certificate of Exemption: Download and fill out the South Dakota-revised SST Certificate of Exemption from the SDDOR’s website. You’ll present this form to your suppliers when making tax-exempt purchases.

Alternatively, you may also opt to use the non-South Dakota-revised SST Exemption Certificate. It’s the general Streamlined Sales and Use Tax Certificate of Exemption form available on the SSTGB website.

6. Submission: No submission required in South Dakota. You don’t submit the exemption 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 the Streamlined Sales and Use Tax Certificate of Exemption. However, you may need a valid Sales Tax License once you have a nexus in South Dakota. If you need one, know that registering for a South Dakota Sales Tax License is free.

8. Understand Renewal Requirements: The South Dakota Exemption Certificate (the Streamlined Sales and Use Tax Certificate of Exemption) itself has no specified expiration date. Meanwhile, blanket exemption certificates are typically valid for up to 12 months unless cancelled by the purchaser.

A South Dakota blanket exemption certificate’s validity may also depend solely on 2 essential factors. 

• Your sales tax license – an inactive or revoked license means your exemption certificate becomes invalid. If you hold a South Dakota sales tax license, you typically do not need to renew it. However, the SDDOR can still revoke your license.
• Your business or transaction details – if there are significant changes to your business details, you must update your resale certificate. These changes typically refer to a shift in the business’s structure or a change in the nature of the transaction.

South Dakota vendors can also cancel your blanket certificate’s validity if they deem it necessary. Therefore, updating your exemption certificate based on these variable aspects is crucial to keep your South Dakota suppliers up to date.

By updating your records accordingly, you and your supplier can stay compliant with South Dakota’s sales tax regulations and prevent audits.

How to Use a South Dakota Resale Certificate

To properly utilize your exemption certificate in South Dakota when making tax-exempt purchases for resale, you’ll need to present a valid copy of your SST Exemption Certificate to your supplier at the time of purchase.

South Dakota accepts out-of-state resale certificates. However, there are specific conditions.

Under South Dakota’s South Dakota’s Administrative Rule 64:06:01:08.01, the only acceptable forms for exemption certificates are:

• The department’s official exemption certificate form
• A substitute form with prior department approval
• The Multistate Tax Commission Uniform Sales and Use Tax Certificate form, or 
• The Streamlined Sales Tax Agreement Certificate of Exemption

Be aware that South Dakota may not accept resale certificates from other states. For South Dakota vendors to accept your certificate, you must also abide by the following conditions: 

• Meet Compliance Requirements: If you use the SST Exemption Certificate, know that its usage is also subject to specific rules. For instance, you cannot claim resale exemption on services unless certain conditions are met.
  Refer to the “Multi-Jurisdictional Resale Certificates” section for more details.
• Good Faith Acceptance: Vendors in South Dakota may accept an out-of-state resale certificate in good faith, provided it contains all the necessary information (buyer’s name, address, seller’s permit number from the issuing state, reason for exemption, etc.).
  To increase the likelihood of good faith acceptance, consider using the Streamlined Sales and Use Tax Certificate of Exemption.

If you are an out-of-state business buying from a vendor in South Dakota and intend to use your home state’s resale certificate, be ready to present it at the time of purchase.

However, as previously mentioned, South Dakota vendors can only accept state-specific forms that the state recognizes. For convenience, you may use South Dakota’s SST Exemption Certificate itself, as it’s already accommodating for out-of-state buyers.

To ensure a seamless transaction, confirm the vendor’s policy on accepting out-of-state certificates beforehand. This practice also helps prevent potential audit issues.

For more information regarding sales tax exemption laws in South Dakota, read the state’s official publications on exemption certificates.

Multi-Jurisdictional Resale Certificates

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 two primary types of multi-jurisdictional resale certificates that a business operating in or selling to vendors in South Dakota might encounter:

• Streamlined Sales Tax (SST) Certificate of Exemption: South Dakota is a member of the Streamlined Sales Tax Governing Board, and the Streamlined Sales and Use Tax Certificate of Exemption is the primary exemption certificate for resale purposes in the state. Therefore, South Dakota vendors generally accept this certificate with ease.
  But as previously discussed, you must meet specific requirements depending on your business to properly use this form. You can find more information about South Dakota’s SST membership on the Streamlined Sales Tax Governing Board website.
• Multistate Tax Commission (MTC) Uniform Sales & Use Tax Resale Certificate: This is a widely recognized form accepted by many states, including South Dakota. This certificate is also an acceptable form for an exemption claim.
  When purchasing services for resale, you must ensure the following conditions are met to claim exemption:
  • The buyer delivers the purchased service directly to their customer, including contracted services yet to be provided.
  • You purchased the service on behalf of your customer.
  • You, the buyer, shall not use the purchased service in any manner. Your customer must be the only person using the service.
  • The purchased service must be delivered or resold without any changes applied by the purchaser.
    You may find this form at the Multistate Tax Commission (MTC) website.

For a seamless transaction, inquire about your South Dakota supplier’s policies on accepting various types of resale certificates beforehand. This practice also helps prevent potential audit issues.

Responsibilities When Using or Accepting a South Dakota Resale Certificate

Buyer Responsibilities

Using a South Dakota exemption certificate means you’re 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.

• South Dakota-based buyers: Provide a fully completed Streamlined Sales and Use Tax Certificate of Exemption to your suppliers for qualifying purchases. The MTC Resale Certificate form can also be used as long as it’s properly completed.
  If your business has a sufficient nexus in South Dakota, ensure you have a valid Sales Tax License as well.

Businesses based in South Dakota listed below generally need to obtain a Sales Tax License. To use the Streamlined Sales and Use Tax Certificate of Exemption, these businesses must follow specific rules stated under South Dakota’s official guidelines.

• Manufacturers: Manufacturers: Manufacturers also include fabricators, processors, or manipulators. To use the Streamlined Sales and Use Tax Certificate of Exemption correctly, you must comply with certain regulations.
  • Manufacturers must not alter any services they purchase when delivering or selling them
  • You cannot purchase services such as product testing, engineering, designing, and janitorial services for resale
• Lessors: Refers to businesses related to renting or leasing products to customers. However, repair or replacement parts for leased items are still subject to sales or use tax. To learn more, read the Lease and Rental Fact or call the SD DOR at 1-800-829-9188.
• Service Providers: To claim an exemption for resale using the Streamlined Sales and Use Tax Certificate of Exemption, you must meet 3 specific conditions in South Dakota.
  • You must provide the purchased service on behalf of your customer.
  • You must not use or consume the service in any manner.
  • You must deliver or resell the purchased service without changes to the product.
    NOTE: This rule applies to services as components of other services or services purchased for a current customer. This does not apply to services for resale that are otherwise tax-exempt by law.
    Engineers, architects, and surveyors are exempt from this rule. These individuals can purchase tax-exempt services for resale without meeting the 3 conditions above.
• Contractors: This rule applies to contractors operating retail stores. In case you consume the products you purchased for resale, you must pay the use tax for those goods. You can also deduct sales tax on purchases where you initially paid sales tax on goods that eventually got resold.
  However, it is more common for contractors to pay contractors’ excise tax on their gross receipts, not sales tax. The rules for contractors and subcontractors are specific and depend on the type of project.

NOTE: Buyers with “UT” and “ET” in their permit numbers are not allowed to purchase goods and services for resale. These businesses register for “Use Tax” and “Excise Tax,” not sales tax purposes.

Out-of-State Buyer Responsibilities

Aside from these businesses, out-of-state buyers also have certain standards and rules to follow when using the Streamlined Sales and Use Tax Certificate of Exemption. These regulations vary depending on the business:

• Foreign Buyers: You must have a valid VAT ID or any equivalent supporting document to complete the exemption certificate.
• Buyers Without Any Valid IDs: You must write “Not Required” and state the reason for exemption in the Streamlined Sales and Use Tax Certificate of Exemption. Otherwise, vendors may not consider your claim, and they may request an ID.
• Buyers Engaged in Drop Shipping: If you’re a registered business (you have a nexus in your home state), provide your home state’s sales tax ID number.
• Buyers From States without Sales Tax: If available, provide either a home state tax ID number, a VAT ID number, a Driver’s License number, or your FEIN. The vendor may request other supporting documents.
• Buyers without a South Dakota Sales Tax License: If you have no nexus in South Dakota, you can provide your home state’s sales tax ID number. In case you have no valid ID, then refer to the prior sections discussing your other options.

Seller Responsibilities

As a seller in South Dakota, accepting a resale certificate comes with the responsibility of verifying and retaining proper documentation for tax-exempt sales. You must:

• Accept the certificate in good faith
• Ensure it includes all required information: buyer’s name, address, sales tax permit number (or equivalent), reason for exemption, and signature
• Verify that the exemption claim is valid by ensuring that service providers meet specific conditions and that they deliver the services without any alterations.
• Reject if the buyer’s permit contains the letters “UT” and “ET.”
• Request additional documents if deemed necessary or
• Reject the certificate if the items aren’t for resale (e.g., personal or business use)

Keep records for at least 3 years: A properly completed resale certificate is your official proof of why sales tax wasn’t collected. As stated in South Dakota’s Law 10-52A-9, you must retain records for at least three years in case of a sales tax audit by the SD DOR.

Failing to keep records subjects you to penalties defined under South Dakota’s Administrative Code 64:06:01:35.03.

Frequently Asked Questions About the South Dakota Resale Certificate

Are There Penalties for Misusing a South Dakota Resale Certificate?

Yes. Misusing South Dakota’s SST Exemption Certificate or Form 2040 leads to penalties such as:

• Due Tax Payment: Pay the due tax when found guilty with the intent to evade tax. The purchaser is also responsible for remitting the tax owed to the state.
• Class 1 Misdemeanor: For intentionally filing an exemption certificate with the intent to evade payment of tax and failing to timely report it.
• Additional Fine: A 50% additional charge of the tax owed.

Learn more via South Dakota’s Statute Law 10-45-61, which details the responsibilities of the purchaser.

Does a South Dakota Resale Certificate Expire?

The Streamlined Sales and Use Tax Certificate of Exemption has no specified expiration date. However, a blanket certificate continues in force until canceled by the purchaser. Though it is typically only valid while your South Dakota Sales Tax License remains active.

If the authorities revoke or deactivate your license, your exemption certificate becomes invalid. Update blanket certificates accordingly to keep the exemption certificate valid.

How Do I Verify a Resale Certificate in South Dakota?

The primary way to verify a South Dakota Exemption Certificate is by calling the SD DOR at (800) 829-9188. Currently, online verification is not available. Out-of-state documents, tax IDs, and other numbers may also require other verification methods. 

For instance, you have to use another state website’s verification tool if your buyer provides their home state’s ID number.

How TaxHero Can Help

You don’t have to complicate managing sales tax compliance and resale certificates in South Dakota. TaxHero simplifies the process. From keeping your South Dakota Sales 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 South Dakota process today!

If you run an Ecommerce or CPG business in Wisconsin, securing a Sales and Use Tax Exemption Certificate to claim a resale exemption is a smart way to protect your margins and streamline operations.

This certificate enables you to purchase inventory and raw materials tax-free, helping you lower upfront costs, maintain competitive pricing, and remain compliant with Wisconsin sales tax laws.

Understanding Resale Certificates in Wisconsin

What is a Wisconsin Resale Certificate?

In Wisconsin, a Sales and Use Tax Exemption Certificate (Form S‑211) allows businesses to:

• Purchase goods without paying sales tax, provided these goods are intended for resale to their customers in the normal course of their business.
• Make tax-exempt purchases of inventory and materials that will become part of the products they sell by presenting a valid resale certificate to their suppliers.

The purpose is to prevent double taxation once at the wholesale level and again at the point of retail sale. 

However, a Wisconsin 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.

Why do you need a Wisconsin Resale Certificate?

Obtaining a resale certificate in Wisconsin offers several significant advantages for businesses that purchase goods for resale. 

Here are some key benefits:

• Avoid Paying Sales Tax on Inventory: The most direct benefit is purchasing inventory and materials that will be resold to customers without paying Wisconsin’s sales tax upfront. 
• Maintain Competitive Pricing: By not paying sales tax on the cost of goods, businesses have more flexibility in setting competitive prices for products in the Wisconsin market. This can be a crucial advantage, especially in price-sensitive industries.
• Legal Compliance: Possessing and using a valid resale certificate for eligible purchases ensures that businesses comply with Wisconsin’s sales tax laws and regulations, thereby avoiding penalties.

In Wisconsin, the resale certificate you’ll use is Form S‑211 (Wisconsin Sales and Use Tax Exemption Certificate).

When filling out this form, purchasers must include their Wisconsin seller’s permit number (or, for out‑of‑state buyers, a home state seller’s permit number or written statement if they are not required to hold one).

Resale Certificate vs. Sales Tax Permit: What’s the Difference?

A Wisconsin Sales Tax Permit authorizes your business to collect and remit sales tax on taxable sales. A Wisconsin Resale Certificate (Form S‑211) allows you to make tax‑exempt purchases for resale.

To use a resale certificate, you must have an active sales tax permit.

Who Can Use a Resale Certificate in Wisconsin?

Businesses actively selling taxable goods can use a Wisconsin resale certificate. You must hold a valid Wisconsin Sales Tax Permit or provide an acceptable out‑of‑state seller’s permit number if you are based elsewhere.

How to Get a Resale Certificate in Wisconsin: A Step-by-Step Guide

Getting a resale certificate in Wisconsin is straightforward, but you must meet a few requirements first.

1. Make Sure You’re Eligible

Your business must sell taxable goods or services and be registered with the Wisconsin Department of Revenue. Only businesses with a valid Wisconsin Sales Tax Permit are eligible to use a resale certificate.

2. Get a Wisconsin Sales Tax Permit

If you don’t already have one, apply for a Wisconsin Sales Tax Permit through the Wisconsin 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 Wisconsin

3. Gather Your Business Information

You’ll need basic business details to complete the resale certificate, including:

• Business Identification Information: Legal Business Name, Physical Address, Mailing Address 
• Business Entity Structure (i.e., Sole Proprietorship, Partnership, Subchapter S Corp., Corporation, LLC, etc.)
• Federal Employer Identification Number (EIN or FEIN)
• Name, Address, and SSN of Owners, Partners, or Officers
• Business Activity Details: Date & State of Incorporation, Start Date with Wisconsin (Nexus Start Date), Estimated Monthly Sales in Wisconsin
• NAICS Code

4. Complete Form S-211

Download and fill out the Wisconsin Sales and Use Tax Exemption Certificate (Form S‑211) from the Department of Revenue website. Present this form to your suppliers when making tax‑exempt purchases.

5. Submission

Do not submit the resale certificate to the state. 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 S‑211, but a Wisconsin Sales Tax Permit costs $20. This one‑time fee covers each business location.

7. Keep Your Permit Active

Your resale certificate stays valid only while your Sales Tax Permit is active. Renew your permit as required by the Department of Revenue to maintain your ability to make tax‑exempt purchases.

How to Use a Resale Certificate in Wisconsin

To make tax‑exempt purchases for resale in Wisconsin, you must present a completed Wisconsin Sales and Use Tax Exemption Certificate (Form S‑211) to your supplier at the time of purchase.

Wisconsin also accepts resale certificates from other states, but certain conditions apply:

• Good Faith Acceptance: Vendors in Wisconsin will typically accept an out-of-state resale certificate in good faith, provided it contains all the necessary information (buyer’s name, address, seller’s permit number from the issuing state, reason for exemption, etc.)
• Reciprocity: The acceptance might be based on reciprocal agreements with the state that issued the certificate. 

If you are an out‑of‑state buyer, provide your home state’s resale certificate when purchasing from Wisconsin vendors. Always confirm the seller’s policy on accepting out‑of‑state certificates before making a purchase.

For detailed rules, visit the Instructions for Wisconsin Sales and Use Tax Exemption Certificate S-211 and S-211E.

Multi-Jurisdictional Resale Certificates

Multi‑jurisdictional resale certificates make it easier for businesses operating across state lines to claim tax‑exempt purchases without filling out multiple state‑specific forms.

In Wisconsin, two types of multi‑jurisdictional certificates are commonly used:

• Uniform Sales & Use Tax Resale Certificate – Multijurisdiction Form: This widely recognized form is accepted by many states, including Wisconsin, but in Wisconsin, it can only be used to claim a resale exemption. It cannot be used for any other type of exemption.
  To be valid, the form must include your Wisconsin Sales Tax Permit number and be properly completed. Out-of-state purchasers should include their home state’s registration number.
• Streamlined Sales Tax (SST) Certificate of Exemption: Wisconsin is a member of the Streamlined Sales Tax Governing Board, so it accepts the SST form. Vendors may still request a Wisconsin‑specific resale certificate for documentation.

Responsibilities When Using or Accepting a Wisconsin Resale Certificate

Buyer Responsibilities

If you use a Wisconsin resale certificate, you must ensure that it applies only to goods or services intended for resale. Using it for personal use or operational items, like office equipment, is illegal and can lead to penalties.

• Wisconsin-based buyers: You must provide a properly completed Wisconsin Sales and Use Tax Exemption Certificate (Form S‑211). Include your Wisconsin seller’s permit number and confirm that all purchases listed are for resale.
• Out-of-state buyers: If you don’t hold a Wisconsin seller’s permit, you must provide your home state’s permit number or a signed statement confirming that you are a seller not required to hold a Wisconsin permit. Without this, your certificate will be considered incomplete.

Seller Responsibilities

As a seller in Wisconsin, you share responsibility for ensuring proper use of resale certificates. You must:

• Accept the certificate in good faith: Make sure it appears valid and complete.
• Verify the details: Check that it includes the buyer’s name, address, sales tax permit number (or equivalent), reason for exemption, and signature.
• Reject invalid certificates: Do not accept a certificate if it’s used for non-resale purchases.
• Keep records for at least 4 years: Retain each certificate as proof of why sales tax wasn’t collected. Wisconsin law requires you to keep these records for four years in case of an audit.

Frequently Asked Questions About the Wisconsin Resale Certificate

Are There Penalties for Misusing a Wisconsin Resale Certificate?

Yes. Misusing a resale certificate, such as using it for personal or non-resale purchases, can result in tax assessments, additional penalties, and legal action. For example, if the Wisconsin Department of Revenue determines there was intent to evade a tax, a penalty of 50% of the tax due may be added.

In addition, a person who misuses a certificate is guilty of a misdemeanor.

Always use Form S‑211 only for legitimate resale purchases.

Does a Wisconsin Resale Certificate Expire?

No. A Wisconsin resale certificate does not expire. Continuous or blanket certificates are valid indefinitely and do not require renewal at any prescribed interval.

However, it is recommended to renew them at reasonable intervals in case of a business change, registration number change, or discontinuance of the specific business claiming the exemption.

The certificate remains valid only while your Wisconsin Seller’s Permit is active. If your permit becomes inactive or revoked, your resale certificate is no longer valid.

How Do I Verify a Resale Certificate in Wisconsin?

To confirm a buyer’s resale certificate:

• Request a completed Form S‑211 from the purchaser.
• Check their Wisconsin Seller’s Permit number (or out‑of‑state equivalent if applicable).
• Verify the number with the Wisconsin Department of Revenue using their Account Number Search Tool or by calling (608) 266‑2776.

How TaxHero Can Help

You don’t have to complicate managing sales tax compliance and resale certificates in Wisconsin. TaxHero simplifies the process, from keeping your Wisconsin 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 Wisconsin process today!

If you run an Ecommerce or CPG business in Maine, securing a Maine Resale Certificate is a smart move to protect your margins and streamline operations.

This certificate enables you to acquire tangible personal property, including inventory and components or raw materials that become a part of a new product tax-free, thereby reducing upfront costs, maintaining competitive pricing, and ensuring compliance with Maine sales tax laws. To qualify, businesses typically need to register for a sales tax account and meet specific gross sales thresholds.

Understanding Resale Certificates in Maine

What is a Maine Resale Certificate?

In Maine, a resale certificate is a document issued by the Maine Revenue Services that allows businesses to:

• Purchase goods without paying sales tax, provided the buyer plans to resell the goods to their customers in the normal course of their business.
• Make tax-exempt purchases of inventory and materials that will become part of the products they sell by presenting a valid resale certificate to their suppliers.

The resale certificate helps avoid double taxation, once at wholesale and again at the point of retail sale.

However, a Maine 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.

Why do you need a Maine Resale Certificate?

Obtaining a valid Maine Sales Tax Permit (used in place of a resale certificate) gives your business several important advantages when reselling goods:

Here are some key benefits:

• Avoid Paying Sales Tax on Inventory: You can purchase inventory tax-free, so long as the goods are for resale and your tax permit is active and valid.
• Maintain Competitive Pricing: By not paying sales tax upfront on goods you resell, you reduce your cost of goods sold, giving you pricing flexibility in competitive markets.
• Legal Compliance: Using your sales tax permit number for resale purchases ensures you’re following state rules, avoiding misclassification or penalty risks.

In Maine, there is no separate application form to request a resale certificate. Instead, the certificate is automatically issued by MRS to active retailers who report $3,000 or more in gross sales annually (new businesses may receive a provisional certificate based on anticipated sales). The resale certificate displays the business name, location, and sales tax registration number.

Resale Certificate vs. Sales Tax Permit: What’s the Difference?

A Maine Sales Tax Permit authorizes your business to collect and remit sales tax on taxable sales to customers. A Maine 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.

Who Can Use a Resale Certificate in Maine?

Businesses that purchase goods for resale can use a Maine Resale Certificate. To do so, the business must actively sell taxable tangible products and hold a valid Maine Sales Tax Permit.

Maine generally issues resale certificates automatically to registered retailers reporting $3,000 or more in annual gross sales. Businesses must use the certificate strictly for resale purchases; using it for personal or business use items is considered misuse and may result in penalties.

How to Get a Resale Certificate in Maine: A Step-by-Step Guide

Getting a resale certificate in Maine 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

You must be a registered retailer with Maine Revenue Services (MRS) and have reported at least $3,000 in gross sales in the past 12 months to qualify. New businesses may receive a provisional certificate based on anticipated sales, which becomes a full certificate once the sales threshold is met.

2. Get a Maine Sales Tax Permit

If you don’t already have one, apply through the Maine Revenue Services website using the MRS Sales and Use, Withholding, and Service Provider Tax Registration Service. You must have this permit before you can use a resale certificate.

Need help? Read our blog: How to Get a Seller’s Permit in Maine

3. Gather Your Business Information: You’ll need basic business details to complete the resale certificate, including:

• Business Identification Information: Legal Business Name, Physical Address, Mailing Address 
• Business Entity Structure (i.e., Sole Proprietorship, Partnership, Subchapter S Corp., Corporation, LLC, etc.)
• Federal Employer Identification Number (EIN or FEIN)
• Name, Address, and SSN of Owners, Partners, or Officers 
• Business Activity Details: Date & State of Incorporation, Start Date with the State of Maine (Nexus Start Date), Estimated Monthly Sales Tax Liability, and Estimated Monthly Taxable Sales in Maine
• NAICS Code

4. Receive and Utilize Your Resale Certificate:

Once your sales tax registration is complete and you meet the sales threshold, Maine Revenue Services will automatically issue your Maine Resale Certificate. This is the document you will use. When making tax-exempt purchases, present this certificate (or a copy) to your supplier. If you need to create your certificate for a transaction (e.g., if you don’t have your official one immediately available), ensure it includes all the information required by Maine Rule 301, Section .05.

5. Submission

You don’t submit resale certificates to the state. Instead, give the completed certificate directly to your vendors when purchasing inventory or goods for resale.

6. Pay Any Applicable Fees

There’s no cost to use the Maine Resale Certificate of Exemption, but you’ll need a valid Maine Sales Tax Permit.

7. Understand Renewal Requirements

The resale certificate remains valid as long as your Maine Sales Tax Permit is active. If your permit becomes inactive or is revoked, your resale certificate is no longer valid for making tax-exempt purchases.

How to Use a Resale Certificate in Maine

To properly utilize your resale certificate in Maine when making tax-exempt purchases for resale, you’ll need to present a valid copy of your Maine Sales and Use Tax Resale Certificate to your supplier at the time of purchase.

Maine generally does not accept resale certificates issued specifically by other states. However, Maine vendors are instructed to accept the Multistate Tax Commission (MTC) Uniform Sales & Use Tax Certificate – Multijurisdictional from out-of-state purchasers.

• Good Faith Acceptance: Vendors in Maine will typically accept the MTC Uniform Certificate in good faith, provided it contains all the necessary information (buyer’s name, address, seller’s permit number from the issuing state, reason for exemption, etc.)
• Reciprocity: Maine’s acceptance for out-of-state resale is primarily through the MTC Uniform Certificate, rather than bilateral reciprocity for individual state-issued forms.

If you are an out-of-state business purchasing from a vendor in Maine and plan to use your out-of-state exemption for resale, be prepared to provide the Multistate Tax Commission (MTC) Uniform Sales & Use Tax Certificate – Multijurisdictional 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 Maine, you may visit the state’s website.

Multi-Jurisdictional Resale Certificates

A multi-jurisdictional resale certificate simplifies tax-exempt purchases for businesses operating and buying resale goods across multiple states.

Unlike single-state certificates, multi-jurisdictional certificates are designed for acceptance in several states as proof of tax-exempt resale purchases.

However, it’s crucial to understand that not all states accept these multi-state forms, and acceptance can come with specific conditions.

• Uniform Sales & Use Tax Resale Certificate – Multijurisdiction Form: This widely accepted form is available through the Multistate Tax Commission (MTC).
  • For Maine-based purchasers: If a Maine business chooses to use this form, it must include its active Maine Sales Tax Permit number and be properly completed. However, a Maine-issued Resale Certificate is generally preferred for in-state purchases.
  • For out-of-state purchasers making purchases in Maine: Maine vendors are instructed to accept this MTC certificate. Out-of-state purchasers using this form should provide their home state’s permit number.
• Streamlined Sales Tax (SST) Certificate of Exemption: Maine is not a member of the Streamlined Sales Tax Governing Board. Therefore, while a Maine vendor might accept an SST Certificate of Exemption, they are primarily looking for a Maine Resale Certificate Exemption Form or the Uniform Sales & Use Tax Resale Certificate.

Businesses need to verify whether Maine 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.

Responsibilities When Using or Accepting a Maine Resale Certificate

Buyer Responsibilities

If you’re using a Maine 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.

• Maine-based buyers: You must have a valid Maine Sales Tax Permit and use the resale certificate only for transactions directly related to your resale business. Misuse such as using the certificate for purchases that support business operations rather than resale can result in fines or revocation of your permit.
• Out-of-state buyers: If you’re located outside Maine but making purchases from a Maine vendor for resale, you may present a properly completed multi-jurisdictional resale certificate (such as the MTC form). However, the vendor may require additional proof, such as a valid sales tax ID from your home state. Always verify with the seller in advance if they accept out-of-state documentation.

Seller Responsibilities

As a seller in Maine, accepting a resale certificate comes with the responsibility of verifying and retaining proper documentation for tax-exempt sales. You must:

• Accept the certificate in good faith: Only if you believe the buyer legitimately intends to resell the goods.
• Ensure the certificate includes all required information: This includes the buyer’s name, address, sales tax permit number, reason for exemption, and signature.
• Reject certificates for non-qualifying purchases: If the goods are not for resale, such as for internal use, you must charge sales tax.
• Keep records for at least 6 years: Maine requires sellers to retain resale certificates for six years to support tax-exempt sales in audits.

Frequently Asked Questions About the Maine Resale Certificate

Are There Penalties for Misusing a Maine Resale Certificate?

Yes. Fraudulent use for personal or non-resale purchases can lead to legal consequences, up to misdemeanor charges, revocation of the certificate, and associated penalties. Sellers must accept certificates in good faith; misuse undermines that protection.

Does a Maine Resale Certificate Expire?

Yes. Certificates are issued for specific periods, depending on the date of issuance and sales volume. New registrants projecting ≥ $3,000 in annual sales get a provisional certificate lasting approximately 3 to 4 years; thereafter, qualifying retailers receive a 4-year certificate.

How Do I Verify a Resale Certificate in Maine?

Retailers and sellers can confirm certificate validity by using the MRS Sales & Service Provider Tax Lookup Program:

1. Visit the Lookup Program on the Maine Revenue Services website.
2. Enter the purchaser’s registration/account ID.
3. Verify that the resale certificate (or retailer certificate) is still active.

How TaxHero Can Help

You don’t have to complicate managing sales tax compliance and resale certificates in Maine. TaxHero simplifies the process, from keeping your Maine 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 Maine process today!

If you run an Ecommerce or CPG business in Idaho, securing an Idaho 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 Idaho sales tax laws.

Understanding Resale Certificates in Idaho

What is an Idaho Resale Certificate?

In Idaho, a Sales Tax Resale or Exemption Certificate is a document issued by the Idaho State Tax Commission that allows businesses to:

• Purchase goods without paying sales tax, provided these goods are intended for resale to their customers in the normal course of their business.
• Make tax-exempt purchases of inventory and materials that will become part of the products they sell by presenting a valid resale certificate to their suppliers.

The purpose is to prevent double taxation, once at the wholesale level and again at the point of retail sale. 

However, an Idaho 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.

Why do you need a Resale Certificate in Idaho?

Obtaining a resale certificate in Idaho offers several significant advantages for businesses that purchase goods for resale. 

Here are some key benefits:

• Avoid Paying Sales Tax on Inventory: The most direct benefit is that you can purchase inventory and materials for resale without paying Idaho‘s sales tax upfront. 
• Maintain Competitive Pricing: By not paying sales tax on the cost of goods, businesses have more flexibility in setting competitive prices for products in the Idaho market. This can be a crucial advantage, especially in price-sensitive industries.
• Legal Compliance: Possessing and using a valid resale certificate for eligible purchases ensures businesses comply with Idaho’s sales tax laws and regulations to avoid penalties.

In Idaho, the specific form required for a resale certificate is the Sales Tax Resale or Exemption Certificate (Form ST-101).

When filling out Form ST-101, a purchaser must include their federal Employer Identification Number (EIN) or a driver’s license number and the state of issue to identify that it is registered with the Idaho State Tax Commission and authorized to make tax-exempt purchases for resale.

Resale Certificate vs. Sales Tax Permit: What’s the Difference?

An Idaho Sales Tax Permit authorizes your business to collect and remit sales tax on taxable sales to customers. An Idaho Resale Certificate (Form ST-101), 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.

Who Can Use a Resale Certificate in Idaho?

Businesses that purchase goods for resale can use an Idaho Resale Certificate. To do so, the business must actively sell taxable tangible products and hold a valid Idaho Sales Tax Permit.

As detailed in Idaho Administrative Procedures Act (IDAPA) 35.01.02.128, the resale exemption may be claimed by the following types of buyers when purchasing goods for resale:

• Idaho Retailers and Wholesalers: Any retailer or wholesaler actively conducting business in Idaho who possesses a current and valid Idaho seller’s permit number.
• Wholesalers Without Retail Sales: A wholesaler whose business operations are exclusively wholesale (i.e., they make no retail sales) and are therefore not legally required to hold an Idaho seller’s permit number.
• Limited Out-of-State Retailers: An out-of-state retailer who conducts a very limited number of sales in Idaho specifically, no more than two sales within any twelve months, and is consequently not required to hold an Idaho seller’s permit number.

How to Get a Resale Certificate in Idaho: A Step-by-Step Guide

Getting a resale certificate in Idaho 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 purchase goods for resale to customers. Most businesses needing a resale certificate will also sell taxable tangible products and be registered with the Idaho State Tax Commission by holding a valid Idaho Sales Tax Permit.

However, some businesses, like certain wholesalers or limited out-of-state retailers, may be eligible to use a resale certificate even without an Idaho Sales Tax Permit.

2. Get an Idaho Sales Tax Permit: If your business will be making retail sales in Idaho, you must first apply for an Idaho Sales Tax Permit through the Idaho Business Registration System website. This permit number is generally required on your resale certificate (Form ST-101) when you are an Idaho-registered retailer.

Note: If you are a wholesaler making no retail sales, or a limited out-of-state retailer as described in our eligibility section, you may not need an Idaho Sales Tax Permit to use a resale certificate.

Need help? Read our blog: How to Get a Seller’s Permit in Idaho 

3. Gather Your Business Information: You’ll need basic business details to complete the resale certificate, including:

• Your business’s legal name and address
• Seller’s business name and address
• General character of the tangible personal property sold by the buyer
• Your Idaho sales tax permit number (if already obtained)
• Your federal EIN or driver’s license number and state of issue.
• Your signature and date of issue

4. Complete the Form ST-101: Download and fill out the Idaho Sales Tax Resale or Exemption Certificate (Form ST-101) from the Idaho State Tax Commission website. You’ll present this form to your suppliers when making tax-exempt purchases.

5. Submission: No submission required in Idaho. 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-101, but you’ll need a valid Idaho 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: An Idaho resale certificate (Form ST-101) doesn’t have a set expiration date, but it remains valid only as long as the details on it are accurate and you still qualify for the exemption.

Your Idaho Sales Tax Permit typically stays active until it’s canceled by either you or the state. However, if you’re a registered retailer, you must keep up with all sales tax filings and payments to stay in good standing.

If there are any changes to your business details or exemption status, you should give your suppliers an updated Form ST-101.

How to Use a Resale Certificate in Idaho

To properly utilize your resale certificate in Idaho when making tax-exempt purchases for resale, you’ll need to present a valid copy of your Idaho Sales and Use Tax Resale Certificate to your supplier at the time of purchase.

Idaho generally does accept resale certificates issued by other states. However, there might be specific conditions:

• Good Faith Acceptance: Vendors in Idaho will typically accept an out-of-state resale certificate in good faith, provided it contains all the necessary information (buyer’s name, address, seller’s permit number from the issuing state, reason for exemption, etc.)
• Reciprocity: The acceptance might be based on reciprocal agreements with the state that issued the certificate. While Idaho is not a member of the Streamlined Sales Tax Agreement (SSTA), it does accept the Multistate Tax Commission (MTC) Uniform Sales & Use Tax Certificate Multijurisdiction, which facilitates acceptance of a uniform certificate.

If you are an out-of-state business purchasing from a vendor in Idaho, you can use the Uniform Sales and Use Tax Certificate – Multijurisdiction Form.

For more information regarding sales tax exemption laws in Idaho, you may visit the state website.

Multi-Jurisdictional Resale Certificates

A multi-jurisdictional resale certificate is a standardized form that simplifies tax-exempt purchases for businesses operating across state lines.

Unlike single-state resale certificates, multi-jurisdictional ones are designed to be accepted by multiple states as proof of tax-exempt resale purchases.

However, it’s crucial to understand that not all states accept these multi-state forms, and acceptance can come with specific conditions.

Businesses in or selling to Idaho vendors may encounter two main types of multi-jurisdictional resale certificates:

• Uniform Sales & Use Tax Resale Certificate – Multijurisdiction Form: This form is widely recognized and accepted by many states, though not all participate in honoring it. Idaho accepts this form instead of Form ST-101 when out-of-state businesses registered in Idaho sell goods for resale. However, buyers may only use this form when buying tangible goods for resale, not for other exemptions or statutory deductions. Its validity as a resale certificate is contingent upon compliance with Idaho Code Section 63-3622(c). You can find this form on the Multistate Tax Commission (MTC) website.
• Streamlined Sales Tax (SST) Certificate of Exemption: The state of Idaho is not a Member State of Streamlined Sales Tax of the Streamlined Sales Tax Governing Board website. As such, it does not accept the SST Certificate of Exemption for qualifying resale purchases.

Businesses need to verify whether Idaho 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.

Responsibilities When Using or Accepting a Resale Certificate in Idaho

Buyer Responsibilities

If you use an Idaho resale certificate, you must ensure 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.

• Idaho-based buyers: Provide a fully completed Form ST-101 to your suppliers for qualifying purchases. If the buyer properly provides a certificate and usually buys exempt items, they must still pay tax on taxable purchases.
• Out-of-state buyers: While Idaho prefers its own resale certificate form, many Idaho vendors will accept a valid resale certificate from your home state if it includes your business name, address, sales tax number (or equivalent), and a clear resale statement. You can complete the Uniform Sales and Use Tax Certificate – Multijurisdiction Form instead of Form ST-101. 

Seller Responsibilities

Idaho sellers must verify and keep proper documentation when accepting resale certificates for tax-exempt sales. You must:

• Accept the certificate in good faith
• Ensure it includes all required information: buyer’s name, address, sales tax permit number (or equivalent), reason for exemption, and signature.
• Reject the certificate if the items aren’t for resale (e.g., personal or business use)

Keep records for at least 4 years: Your properly completed resale certificate serves as your official proof for not collecting sales tax. You must retain it in your records for at least four years. If the business does not file returns, it is advisable to keep these records for seven years. 

Frequently Asked Questions About the Idaho Resale Certificate

Are There Penalties for Misusing a Resale Certificate in this State?

Yes. Improper use of a resale certificate, such as using it for personal or non-resale purchases, can result in serious penalties:

• Monetary Penalties: Idaho imposes a 5% penalty or $200, whichever is greater, for intentional or repeated misuse of a resale certificate. This penalty is in addition to the sales tax owed.
• Legal Ramifications: Anyone who knowingly misuses a resale certificate to avoid paying tax may face criminal misdemeanor charges in Idaho. Penalties may include a fine up to $1,000, imprisonment up to one year, or both, depending on the offense.

Does an Idaho Resale Certificate Expire?

The Idaho Resale Certificate (Form ST-101) does not have a specified expiration date. Once the state or the buyer issues it, the certificate remains valid until they explicitly revoke it in writing.

However, it is only valid while your Idaho Sales Tax Permit remains active. If the state revokes or deactivates your permit, your resale certificate becomes invalid.

How Do I Verify an Idaho Resale Certificate?

If you’re a seller in Idaho, here’s how to validate a buyer’s resale certificate:

1. Request a completed Form ST-101 from the buyer. Review it to ensure all required information appears to be for resale, consistent with good faith.
2. Check the validity of the seller’s permit through the Idaho Taxpayer Access Point (TAP)
3. Select the permit type and enter the permit number you are searching for, then click Submit.

How TaxHero Can Help

Managing sales tax compliance and resale certificates in Idaho doesn’t have to be complicated. TaxHero simplifies the process, from keeping your Idaho 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 Idaho resale certificate process today!

Filing your Massachusetts sales tax return is simple with the state’s online system. You can file and pay directly through the MassTaxConnect (MTC) website, as long as your business is registered to collect and remit sales tax.

This guide will walk you through the step-by-step process of filing online so you can submit returns on time, avoid penalties, and stay compliant with Massachusetts’s sales tax rules.

What You Need Before Filing

Before filing your sales tax return, you must prepare specific records to ensure your report is accurate. Here are the standard documents required to file a sales tax return in Massachusetts:

• Massachusetts Taxpayer Account (Sales and Use Tax Permit) – To file online using MassTaxConnect, you’re required to have a Massachusetts Sales and Use Tax Permit.
  After your registration with the DOR is approved, you will have created a username and password to access your MassTaxConnect account during the registration process. Once logged in, you can also view your Sales and Use Tax Permit details online.
• MassTaxConnect Account Log-in Details – The primary way to file your Massachusetts sales tax return online is by logging onto your MassTaxConnect account. To access the site, ensure you have your log-in credentials ready (e.g., your username and password).
  Note that your account credentials are separate from the authentication code you’ll receive upon registering your business.
• Total Sales – Gather your total revenue during the filing period. This includes all sales, whether they’re taxable or not. Even if you currently have no sales records, you’re still required to file a return.
• Taxable Sales – Compile the total taxable sales your business made within the filing period. You’ll need this data to determine how much sales tax you owe and must pay for the filing period.
• Taxable Purchases – Verify the total amount of taxable purchases your business spent within the filing period. This applies to both in-state and out-of-state transactions.
• Use Tax Liability – Be prepared to report any use tax owed. Use tax is due on taxable items purchased for business use where sales tax was not collected by the seller.
• Bank Account and Routing Number – Select which bank account you want to use for paying the due taxes in your report. Prepare your bank details and routing number ahead of time.
• Filing Frequency Schedule – The state assigns a specific due date for every registered business. To find out your designated schedule, you can check your MassTaxConnect account.

Step-by-Step: How to File Massachusetts Sales Tax Online

Due Dates

In Massachusetts, your filing schedule and due dates generally change depending on your monthly collected sales tax. For guidance, refer to the table below.

Timely Filing Discount

Filing Amended Returns

Refunds

1. Request a direct refund 
2. Claim the credit for your next year’s estimated tax

Filing Zero Returns in Massachusetts

Other Filing Methods in Massachusetts

• File with TaxHero – Let expert accountants in TaxHero prepare your sales tax returns for you. We’ll take everything off your hands so that you can spend your time more efficiently managing your business.
• File by Mail – For most businesses, filing by paper is not permitted. The Massachusetts Department of Revenue (DOR) requires almost all sales and use tax returns to be filed electronically through MassTaxConnect, regardless of the tax liability.
  If you are granted a specific waiver by the DOR to file on paper, you must download the most recent Form ST-9 from the MassGov website. Complete all the required fields, and then mail it to the address provided on the form. Returns filed by mail must be postmarked on or before the due date.
  For additional paper filing guidance, refer to the official instructions provided by the DOR.

Let TaxHero Manage Your Massachusetts Sales Tax Returns

If you run an Ecommerce or CPG business in Nebraska, securing a Nebraska 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 Nebraska sales tax laws.

Understanding Resale Certificates in Nebraska

What is a Nebraska Resale Certificate?

In Nebraska, a resale certificate is documented on the Nebraska Resale or Exempt Sale Certificate (Form 13) issued by the Nebraska Department of Revenue (DOR). Businesses use this document to:

• Purchase goods without paying sales tax, provided these goods are intended for resale to their customers in the normal course of their business.
• Make tax-exempt purchases of inventory and materials that will become part of the products they sell by presenting a valid resale certificate to their suppliers.

The resale certificate helps avoid double taxation, once at wholesale and again at the point of retail sale.

However, a Nebraska 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.

Why do you need a Nebraska Resale Certificate?

Obtaining a resale certificate in Nebraska offers several significant advantages for businesses that purchase goods for resale.

Here are some key benefits:

• Avoid Paying Sales Tax on Inventory: The most direct benefit is purchasing inventory and materials that will be resold to customers without paying Nebraska’s sales tax upfront. 
• Maintain Competitive Pricing: By not paying sales tax on the cost of goods, businesses have more flexibility in setting competitive prices for products in the Nebraska market. This can be a crucial advantage, especially in price-sensitive industries.
• Legal Compliance: Possessing and using a valid resale certificate for eligible purchases ensures that businesses comply with Nebraska’s sales tax laws and regulations, thereby avoiding penalties.

You’ll use Form 13, Nebraska Resale or Exempt Sale Certificate, to document these tax-exempt purchases.

When completing the form, you must include your Nebraska Sales Tax ID number. You must first obtain this number, as it confirms your registration with the Nebraska Department of Revenue.

Resale Certificate vs. Sales Tax Permit: What’s the Difference?

A Nebraska Sales Tax Permit authorizes your business to collect and remit sales tax on taxable sales. A Nebraska Resale Certificate (Form 13) allows you to purchase goods tax-free from suppliers if those goods are for resale.

To use Form 13 correctly, your business must first register for and maintain an active sales tax permit sales tax permit with the state.

Who Can Use a Resale Certificate in Nebraska?

Businesses that purchase goods for resale, lease, or rental, or as ingredients or parts of other property to be resold, leased, or rented, can use a Nebraska Resale Certificate. To qualify, your business must actively sell taxable tangible products or services and hold a valid Nebraska Sales Tax Permit.

Out-of-state purchasers may also use the form, provided they include their home state’s sales tax number and the purchase meets Nebraska’s resale criteria.

How to Get a Resale Certificate in Nebraska: A Step-by-Step Guide

Obtaining a resale certificate in Nebraska is straightforward, but it is essential to follow a few key steps to ensure compliance. Here’s how to get started:

1. Make Sure You’re Eligible

Your business purchases goods for resale, lease, or rental in the normal course of business, or as an ingredient or part of other property to be resold, leased, or rented, and registers with the Nebraska Department of Revenue.

Only businesses with a valid Nebraska Sales Tax Permit can issue or use a resale certificate.

2. Get a Nebraska Sales Tax Permit

If you haven’t already registered, apply for a Nebraska Sales Tax Permit through the Nebraska Department of Revenue website. You must obtain this permit before issuing resale certificates to suppliers.

Need help? Read our blog: How to Get a Seller’s Permit in Nebraska

3. Gather Your Business Information: You’ll need basic business details to complete the resale certificate, including:

• Business Identification Information: Legal Business Name, Physical Address, Mailing Address 
• Business Entity Structure (i.e., Sole Proprietorship, Partnership, Subchapter S Corp., Corporation, LLC, etc.)
• Federal Employer Identification Number (EIN or FEIN)
• Name, Address, and SSN of Owners, Partners, or Officers
• Business Activity Details: Date & State of Incorporation, Start Date with the State of Nebraska (Nexus Start Date), Estimated Yearly Sales Tax Liability, Month of Fiscal Year End, Accounting Method (Cash vs. Accrual)
• A Signed Power of Attorney (Form 33) (if applicable)
• NAICS Code

4. Complete Form 13

Download and fill out Form 13: Nebraska Resale or Exempt Sale Certificate from the Department of Revenue’s website. You’ll give this completed form to your suppliers when making qualifying tax-exempt purchases for resale.

5. Submission

You don’t need to file Form 13 with the state. Instead, provide the completed certificate directly to your suppliers at the time of purchase. They must keep it on file to justify not charging you sales tax.

6. Pay Any Applicable Fees

There’s no cost to use Form 13, but you’ll need a valid Nebraska Sales Tax Permit.

7. Understand Renewal Requirements

Your Nebraska resale certificate stays valid only while your Sales Tax Permit remains active. Nebraska Sales Tax Permits generally do not require periodic renewal once issued, but you must maintain good standing with the Department of Revenue.

To continue making tax-exempt purchases, you must ensure your permit remains active and your business continues to qualify.

How to Use a Resale Certificate in Nebraska

If you’re an out-of-state business buying goods from a Nebraska vendor for resale, you may still claim an exemption, provided you meet Nebraska’s documentation standards. 

Nebraska does not maintain formal resale certificate reciprocity, so sellers have the discretion to accept or reject out-of-state certificates.

Nebraska generally does accept resale certificates issued by other states. However, there might be specific conditions:

• Use your home state ID: Out-of-state purchasers may list their home state’s sales tax number on Section A of Form 13. Nebraska does not require these buyers to have a Nebraska tax ID for resale purposes.
• Vendor discretion still applies: Nebraska sellers may accept an out-of-state resale certificate or a properly completed Form 13 in good faith, but they’re not obligated to. Always check the vendor’s policy before the purchase.
• Expect to complete Form 13: Even if you’re presenting an out-of-state certificate, the seller may ask you to fill out Form 13 to document the transaction correctly under Nebraska law.

For more information regarding sales tax exemption laws in Nebraska, you may visit the state’s website.

Multi-Jurisdictional Resale Certificates

A multi-jurisdictional resale certificate simplifies tax-exempt purchases for businesses that operate and buy goods for resale across state lines.

Unlike single-state resale certificates, multi-jurisdictional ones aim for acceptance by multiple states as proof of tax-exempt resale purchases.

However, it’s crucial to understand that not all states accept these multi-state forms, and acceptance can come with specific conditions.

• Uniform Sales & Use Tax Resale Certificate – Multijurisdiction Form: This widely recognized form is accepted by many U.S. states.
  In Nebraska, sellers are authorized to accept it if it’s properly completed and includes either a Nebraska Sales Tax Permit number (for in-state buyers) or a home-state sales tax number (for out-of-state buyers).
  Always confirm with the seller if they’ll accept this form before using it.
• Streamlined Sales Tax (SST) Certificate of Exemption: Nebraska is a full member of the Streamlined Sales and Use Tax Agreement (SSUTA) since October 1, 2005. This status means Nebraska recognizes the SST Certificate of Exemption.
  However, vendors may prefer the MTC form or Nebraska’s Form 13. If a vendor chooses to accept the SST certificate, ensure it is fully completed and includes all required details.

Businesses must confirm whether Nebraska accepts these certificates and understand any specific requirements or limitations for their use in the state. This is to avoid any audit issues.

Responsibilities When Using or Accepting a Nebraska Resale Certificate

Buyer Responsibilities

If you’re using a Nebraska resale certificate, you’re responsible for applying it only to purchases of tangible goods or services you plan to resell. 

Misusing it for personal items, office supplies, or operational expenses is illegal and can trigger audits, penalties, and tax liabilities.

• Nebraska-based buyers: If your business is registered in Nebraska, you must provide your Nebraska Sales Tax Permit number when completing the resale certificate.
  Make sure to use the certificate only when purchasing tangible goods or certain taxable services intended for resale.
  You must also keep track of what was purchased under exemption and ensure accurate sales tax reporting on your taxable sales.
• Out-of-state buyers: If you’re based outside Nebraska, you may use your home state’s sales tax number on the resale certificate, provided the Nebraska vendor agrees to accept it.
  In some cases, vendors might still request that you fill out Form 13. You should clearly state the exemption reason and confirm that the purchase is for resale outside Nebraska to remain compliant.

Seller Responsibilities

As a seller, you’re required to accept resale certificates in good faith and maintain proper documentation for every exempt sale.

Failing to do so may result in the seller being held liable for unpaid tax if the exemption is challenged during an audit.

You must:

• Verify certificate accuracy: Check that the resale certificate includes the buyer’s name, address, sales tax permit number (or equivalent), exemption reason, and signature, and ensure it is received timely
• Ensure resale use: Make sure the items sold are intended for resale and not for the buyer’s personal or business use.
• Retain records for 3 years: Nebraska regulations require sellers to maintain all sales-related records, including exempt resale certificates, for a minimum of three years after the return is filed or while a refund claim or audit is pending.
• Reject incomplete or invalid certificates: If the buyer doesn’t provide all required information or intends to use the purchase for non-resale purposes, you must charge sales tax or deny the exemption.

Frequently Asked Questions About the Nebraska Resale Certificate

Are There Penalties for Misusing a Nebraska Resale Certificate?

Yes. Misusing Form 13 for non-exempt purchases can result in a penalty of $100 or ten times the tax due, whichever is greater.

Additionally, fraudulently signing Form 13 may be considered a Class IV misdemeanor.

Does a Nebraska Resale Certificate Expire?

Form 13, Nebraska’s resale certificate, does not include a stated expiration date. However, the certificate remains valid only while the buyer’s Nebraska Sales Tax Permit is active and in good standing.

Nebraska Sales Tax Permits usually don’t expire or need renewal unless your business changes ownership, structure, or location. If the permit is revoked, canceled, or inactive, the certificate is no longer valid for tax-exempt purchases.

How Do I Verify a Resale Certificate in Nebraska?

Online verification for Nebraska resale certificates is not available. Instead:

• Ask the buyer to provide a fully completed and signed Nebraska Resale Certificate (Form 13).
• Ensure all required fields are completed, including the buyer’s name, address, sales tax number (if any), and exemption reason.
• If you have questions or need confirmation, contact the Nebraska Department of Revenue by phone or email for assistance.

How TaxHero Can Help

You don’t have to complicate managing sales tax compliance and resale csertificates in Nebraska. TaxHero simplifies the process, from keeping your Nebraska 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 Nebraska process today!

Understanding Resale Certificates in West Virginia

What Does a Resale Certificate Mean for Montana Businesses?

Why Montana Businesses Still Need to Understand Resale Exemptions?

• Avoiding Sales Tax on Out-of-State Purchases: Protect profit margins when buying inventory/materials from suppliers located in states with sales tax.
• Maintaining Smooth Vendor Relationships: Ensure seamless transactions with out-of-state suppliers who may initially be confused by Montana’s no-sales-tax status or require specific documentation.
• Legal Compliance (Interstate): Prevent potential use tax liabilities that could arise if an out-of-state purchase isn’t properly documented as tax-exempt by the seller.
• Streamlining Operations: Reduce administrative burden and confusion when dealing with varied vendor requirements.

Resale Certificate vs. Business Registration: The Key Distinction

How to Handle Resale Exemptions as a Montana Business

For Purchases from Out-of-State Vendors

Utilizing the Montana Business Registry Resale Certificate

• Your legal and business name, address, and contact number
• Your Montana Business Registration Number
• A verification of whether your business’ only physical location is in Montana
• Type of tangible personal property your business is selling
• Description of property to be purchased for resale
• Your authorized signature, title, and date of issue.

What to Do if an Out-of-State Vendor Insists on a Sales Tax Permit

• Educate the vendor: Politely explain that Montana does not have a general statewide sales tax and, therefore, Montana businesses do not have state-issued sales tax permits.
  Present the Montana Business Registry Resale Certificate as the official documentation provided by the state to address this specific situation. You can even direct them to the certificate’s clear explanation of Montana’s no-sales-tax status.
• Rare option: Voluntarily registering for a sales tax permit in the vendor’s state: If you make frequent, large purchases from a specific state, and the vendor insists, you could voluntarily register for a sales tax permit in that state.
  However, this comes with the added compliance burden of filing returns in that state, even if you only use the permit for your purchases. This is generally not recommended unless necessary.
• Briefly mention paying the tax and seeking a refund: As a last resort, you could pay the sales tax and then attempt to seek a refund from the vendor or the respective state’s department of revenue. This is often a more cumbersome and time-consuming process.

For Purchases Within Montana

Multi-Jurisdictional Resale Certificates: Tools for Out-of-State Purchases

The Uniform Sales & Use Tax Resale Certificate – Multijurisdiction Form 

Streamlined Sales Tax (SST) Certificate of Exemption

Responsibilities When Claiming Resale Exemptions

Buyer Responsibilities for Montana Businesses

• Intend to Resell: Use the Montana Business Registry Resale Certificate only for goods genuinely intended for resale, never for personal or operational items. Misuse can lead to penalties.
• Provide accurate and complete documentation to out-of-state vendors: Fill out all required fields correctly on the Montana Business Registry Resale Certificate.
• Understand potential use tax obligations: The Montana Business Registry Resale Certificate states that if you later use exempted goods for non-resale purposes, you may owe use tax to the state where you originally made the purchase.

Seller Responsibilities for Montana Businesses (When Selling to Out-of-State Buyers)

Frequently Asked Questions About the Montana Resale Exemptions

Are There Penalties for Misusing Montana Exemption Documentation?

Does the Montana Business Registry Resale Certificate Expire?

How Do I Verify a Montana Business’s Exemption Claim (As an Out-of-State Seller)?

1. Request a completed Montana Business Registry Resale Certificate (Form RESALE) from the buyer. Review it to ensure all required information is present and the purchase appears to be consistent with good faith.
   The Montana Business Registry Resale Certificate is a self-certification document. The buyer is certifying that their business is registered and that the purchase is for resale. Your primary verification step is to ensure the form is filled out completely and in good faith.
2. To confirm the business’s existence and active status, you can use the Montana Secretary of State’s Business Search Tool. This online tool also allows you to look up registered businesses in Montana, confirming their active status.
   Enter the business name or filing number and select Search.

How TaxHero Can Help

Understanding Resale Certificates in Georgia

What is a Georgia Resale Certificate?

• Purchase goods without paying sales tax, provided these goods are intended for resale to their customers in the normal course of their business.
• Make tax-exempt purchases of inventory and materials that will become part of the products they sell by presenting a valid resale certificate to their suppliers.

Why do you need a Resale Certificate in Georgia?

• Avoid Paying Sales Tax on Inventory: The most direct benefit is that you can purchase inventory and materials for resale without paying Georgia’s sales tax upfront. 
• Maintain Competitive Pricing: By not paying sales tax on the cost of goods, businesses have more flexibility in setting competitive prices for products in the Georgia market. This can be a crucial advantage, especially in price-sensitive industries.
• Legal Compliance: Possessing and using a valid resale certificate for eligible purchases ensures businesses comply with Georgia’s sales tax laws and regulations to avoid penalties.

Resale Certificate vs. Sales Tax Permit: What’s the Difference?

Who Can Use a Resale Certificate in Georgia?

How to Get a Resale Certificate in Georgia: A Step-by-Step Guide

• Your business legal name and any trade names.
• Your business address and contact information.
• Your Federal Employer Identification Number (FEIN) or Social Security Number (SSN) if you’re a sole proprietor.
• Your Georgia sales tax permit number (if already obtained)
• Your business type (e.g., sole proprietorship, LLC, corporation).

How to Use a Resale Certificate in Georgia

• Reciprocity laws must exist between Georgia and the buyer’s state. If there is no reciprocity, Georgia suppliers cannot accept the out-of-state resale certificate.
• Ensure the resale certificate is valid & fully completed with accurate buyer information.

Multi-Jurisdictional Resale Certificates

• Uniform Sales & Use Tax Resale Certificate – Multijurisdiction Form: This is a widely recognized form accepted by a significant number of states (though not all).
  Georgia may accept the form, but only if you include your Georgia Sales Tax Permit number and complete it properly.
  Out-of-state purchasers should include their home state’s registration number. You can find this form on the Multistate Tax Commission (MTC) website.
• Streamlined Sales Tax (SST) Certificate of Exemption: Georgia is a full member of the Streamlined Sales Tax Governing Board as of October 1, 2005. As such, it accepts the SST Certificate of Exemption for qualifying resale purchases.
  Businesses using either certificate must ensure they meet all Georgia-specific requirements. Improper use or incomplete documentation can result in tax liability upon audit.

Responsibilities When Using or Accepting a Resale Certificate in Georgia

Buyer Responsibilities

• Georgia-based buyers: Provide a fully completed Form ST-5 to your suppliers for qualifying purchases.
• Out-of-state buyers:
  • You may use a resale certificate to buy goods for resale from Georgia suppliers, but acceptance depends on reciprocity between your home state and Georgia.
  • If no reciprocal agreement exists, Georgia suppliers cannot accept your out-of-state certificate.
  • Ensure your certificate is complete, valid, and not expired. Since the burden of proof is on the seller, they may verify its legitimacy using state-provided tools like the Georgia Sales Tax Verification Tool.

Seller Responsibilities

• Accept the certificate in good faith
• Ensure it includes all required information: buyer’s name, address, sales tax permit number (or equivalent), reason for exemption, and signature.
• Reject the certificate if the items aren’t for resale (e.g., personal or business use)

Frequently Asked Questions About the Georgia Resale Certificate

Are There Penalties for Misusing a Resale Certificate in this State?

Does a Georgia Resale Certificate Expire?

How Do I Verify a Resale Certificate in Georgia?

1. Visit the Georgia Tax Center.
2. On the Home page, under Searches, click on Sales Tax IDs
3. Read the instructions and tips carefully. Click Next.
4. Enter the sales tax number(s) for verification. Alternatively, you can complete and import an Excel template. Click Next.
5. Print a copy of the search results for your records.

How TaxHero Can Help

If you run an Ecommerce or CPG business in West Virginia, securing a West Virginia Resale Certificate is a smart move to protect your margins and streamline operations.

This certificate allows you to purchase inventory, raw materials, or components that become an integral part of a product you ultimately sell tax-free, helping you lower upfront costs, stay competitive in pricing, and remain compliant with West Virginia sales tax laws.

Understanding Resale Certificates in West Virginia

What is a West Virginia Resale Certificate?

In West Virginia, a Certificate of Exemption (Form F0003) is a document that businesses complete and present to their suppliers, allowing them to:

• Purchase goods without paying sales tax, as long as they intend to resell those goods to customers during regular business operations.
• Make tax-exempt purchases of inventory and materials that will become part of the products they sell by presenting a valid resale certificate to their suppliers.

The purpose is to prevent double taxation once at the wholesale level and again at the point of retail sale. 

However, a West Virginia resale certificate is not a blanket exemption from all sales tax obligations. Businesses must still collect and remit sales tax on taxable sales to final consumers.

Why do you need a Resale Certificate in West Virginia?

Obtaining a resale certificate in West Virginia offers several significant advantages for businesses that purchase goods for resale.

Here are some key benefits:

• Avoid Paying Sales Tax on Inventory: The most direct benefit is purchasing inventory and materials that will be resold to customers without paying West Virginia’s sales tax upfront.
• Maintain Competitive Pricing: By not paying sales tax on the cost of goods, businesses have more flexibility in setting competitive prices for products in the West Virginia market. This can be a crucial advantage, especially in price-sensitive industries. This can be a crucial advantage, especially in price-sensitive industries.
• Legal Compliance: Possessing and using a valid resale certificate for eligible purchases ensures businesses comply with West Virginia’s sales tax laws and regulations to avoid penalties such as unpaid tax, interest, and fines.

In West Virginia, the specific form required for a resale certificate is the Certificate of Exemption. West Virginia is a member of the Streamlined Sales Tax Governing Board, so it accepts the Streamlined Sales and Use Tax Certificate of Exemption (Form F0003).

When filling out a Certificate of Exemption, a purchaser must include their West Virginia Business Registration Certificate Number to identify that they are registered with the West Virginia Division of Taxation and authorized to make tax-exempt purchases for resale.

Resale Certificate vs. Sales Tax Permit: What’s the Difference?

A West Virginia Business Registration Certificate authorizes your business to collect and remit sales tax on taxable sales to customers. A West Virginia 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 Business Registration Certificate.

Who Can Use a Resale Certificate in West Virginia?

Businesses that purchase goods for resale can use a West Virginia Certificate of Exemption. To do so, the business must actively sell taxable tangible products and hold a valid West Virginia Business Registration Certificate.

How to Get a Resale Certificate in West Virginia: A Step-by-Step Guide

Getting a resale certificate in West Virginia 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 West Virginia Tax Division. Only businesses with a valid West Virginia Business Registration Certificate can use a resale certificate.

2. Get a West Virginia Business Registration Certificate: If you don’t already have one, apply for a West Virginia Business Registration Certificate through the West Virginia Tax Division’s MyTaxes portal. This certificate is required before you can issue or use a resale certificate. 

3. Gather Your Business Information: You’ll need basic business details to complete the Certificate of Exemption, including:

• Invoice/purchase order number (if the certificate is used for a single purchase)
• Your legal name and business address
• Your seller’s name and address
• Your type of business
• Your reason for exemption
• Your identification (ID) number
• Your authorized signature and date of issue

4. Complete the Form F0003: Download and fill out the West Virginia Certificate of Exemption from the West Virginia Tax Division website. You’ll present this form to your suppliers when making tax-exempt purchases.

5. Submission: No submission required in West Virginia. You don’t submit the exemption 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 West Virginia Certificate of Exemption (Form F0003), but you’ll need a valid West Virginia Business Registration Certificate, which costs a one-time $30 fee.

7. Understand Renewal Requirements: While the West Virginia Certificate of Exemption (Form F0003) itself doesn’t specify an expiration date, it remains valid only as long as your business registration certificate is active and in good standing.Also, it will be valid as long as a recurring business relationship between you and the seller exists.

A recurring business relationship is defined as a period of no more than 12 months elapsing between sales transactions.

Suppliers may, however, periodically request an updated form (e.g., every few years) to ensure their records are current.

If you’re a registered retailer, you must keep up with all sales tax filings and payments to stay in good standing. If there are any changes to your business details or exemption status, provide your suppliers with an updated Form F0003. 

How to Use a Resale Certificate in West Virginia

To use your resale certificate in West Virginia, present a valid copy to your supplier at the time of purchase.

West Virginia generally does accept resale certificates issued by other states. However, there might be specific conditions:

• Good Faith Acceptance: West Virginia vendors usually accept an out-of-state resale certificate if it includes all required information and appears valid.
• Reciprocity: The acceptance may be based on reciprocal agreements with the state that issued the certificate. Additionally, West Virginia participates in the Streamlined Sales Tax Agreement (SSTA), which facilitates acceptance of a uniform certificate such as the Streamlined Sales Tax Certificate of Exemption.

Multi-Jurisdictional Resale Certificates

A multi-jurisdictional resale certificate simplifies tax-exempt purchases for businesses that buy goods for resale across state lines.

Unlike a single-state resale certificate, a standardized multi-jurisdictional form allows multiple states to recognize the purchase as tax-exempt because it’s intended for resale.

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 West Virginia might encounter:

• Uniform Sales & Use Tax Resale Certificate – Multijurisdiction Form: This is a widely recognized form accepted by a significant number of states (though not all). West Virginia also accepts this form for a resale exemption.
  Out-of-state purchasers should include their home state’s registration number where indicated. You can find this form on the Multistate Tax Commission (MTC) website.
• Streamlined Sales Tax (SST) Certificate of Exemption: The state of West Virginia became a full member of the Streamlined Sales Tax on October 1, 2005. As such, it accepts the SST Certificate of Exemption for qualifying resale purchases. Businesses using either certificate must ensure they meet all West Virginia-specific requirements.
  You can find more information about the SST and its member states on the Streamlined Sales Tax Governing Board website. 

Businesses need to verify whether West Virginia 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.

Responsibilities When Using or Accepting a Resale Certificate in West Virginia

Buyer Responsibilities

If you use a West Virginia resale certificate, ensure it’s only for tangible personal property you plan to resell. Using it for personal or business items, like office supplies or equipment, is illegal and may result in penalties. It can lead to unpaid tax liability, interest, and other applicable penalties.

• West Virginia-based buyers: Provide a fully completed Form F0003 to your suppliers for qualifying purchases.
• Out-of-state buyers: West Virginia vendors will accept out-of-state resale certificates, such as the Uniform Sales and Use Tax Certificate – Multijurisdiction Form, provided that they are properly completed and comply with West Virginia’s requirements. 

Seller Responsibilities

As a seller in West Virginia, you must verify and keep documentation for tax-exempt sales using a resale certificate. Also, according to the West Virginia Code, you must:

• Accept the certificate in good faith: This means accepting the certificate without knowledge or reason to believe it is fraudulent. You are relieved of liability for sales tax if you accept a properly completed certificate in good faith.
• Ensure it includes all required information: The certificate must include the buyer’s name, address, sales tax permit number, reason for exemption, and signature.
• Reject the certificate if the items aren’t for resale (e.g., personal or business use)
• Keep records for at least three years: A properly completed resale certificate serves as your official proof for not collecting sales tax. You must retain it in your records for at least three years in case the West Virginia Tax Division audits your business.
• Update certificates as needed: While a blanket certificate remains valid as long as a recurring business relationship exists, it is best practice for sellers to periodically review and update their records.

Frequently Asked Questions About the West Virginia Resale Certificate

Are There Penalties for Misusing a Resale Certificate in this State?

Yes. Improper use of a resale certificate, such as using it for personal or non-resale purchases, can result in serious penalties.

A seller or certified service provider does not have to collect sales tax if they obtain a properly completed Form F0003.

However, the state may still hold sellers liable if they knowingly accept false information or attempt to evade tax. Also, a buyer who submits a false resale certificate to a seller is liable for any resulting taxes and penalties.

According to the West Virginia Code, a person who willfully issues a false or fraudulent exemption certificate with the intent to evade sales or use tax commits a misdemeanor. This offense can result in a penalty of fifty percent of the tax that would have been due, along with any other penalties imposed by law.

Always use Form F0003 correctly and only for qualified resale purchases to avoid issues.

Does a West Virginia Resale Certificate Expire?

The Form F0003 remains valid as long as the buyer and seller maintain a recurring business relationship. A recurring business relationship exists when no more than twelve months pass between transactions.

The certificate doesn’t expire, but sellers may request an updated one to keep records accurate and up to date. The state also recommends updating your Certificate of Exemption.

How Do I Verify a West Virginia Resale Certificate?

If you’re a seller in West Virginia, a direct online verification tool is not available for a buyer’s sales tax ID number. However, the West Virginia Tax Division provides an online list of active businesses. Here’s how you can validate a buyer’s resale certificate:

• Request a completed Streamlined Sales Tax Form F0003 from the buyer. Review the form to ensure it has all required details and the purchase is clearly for resale, in good faith.
• Verify the form by calling the West Virginia Tax Division at (304) 558-3333. Prepare the buyer’s business name and West Virginia Business Registration Certificate Number to help the representative verify the resale certificate.

How TaxHero Can Help

Managing sales tax compliance and resale certificates in West Virginia doesn’t have to be complicated. TaxHero simplifies the process, from keeping your West Virginia Sales and Use Tax Permit active to using resale certificates correctly.

Save time. Avoid penalties. Stay compliant.

Schedule a Demo to see how TaxHero can streamline your West Virginia resale certificate process today!

What You Need Before Filing

• Maryland Tax Connect Log-in Credentials – The state requires businesses to file electronically through Maryland Tax Connect. Make sure you have your username and password ready. (Note: You may also file certain returns as a Guest, but creating an account is recommended for managing your tax records.)
• Federal Employer Identification Number (FEIN) and Central Registration Number (CRN) – Your CRN is the primary state tax ID used for filing. You will need your FEIN when initially registering your business.
• Total Sales – Report your gross sales for the filing period, including both taxable and nontaxable sales.
• Taxable Sales – This is the figure for your taxable sales, which is calculated by subtracting any non-taxable or exempt sales from your gross sales.
• Taxable Purchases – If you made purchases where Maryland use tax wasn’t paid but should have been, you’ll need to report them.
• Bank Account and Routing Number – To make payments online, you’ll need your banking information.
• Filing Frequency Schedule – The Comptroller assigns your business a filing frequency (monthly, quarterly, or annually) based on sales volume. Check your sales tax license or Maryland Tax Connect account to confirm your schedule.

Step-by-Step: How to File Maryland Sales Tax Online

• Form Type: Sales and Use Tax Return Form 202
• Return Type: Original Return (or Amended if you’re correcting a prior filing)
• Filing Method: Data Entry
• Period End Date: Select the tax period you’re reporting.

• Enter your payment amount (or check “Total Outstanding Balance”).
• Select ACH Direct Debit as your payment method.
• Use an existing saved bank account or add a new one with your routing and account numbers.
• Choose your payment date, agree to the authorization, and click Submit.

Due Dates

Timely Filing Discount

• The discount is 1.2% of the first $6,000 of sales tax collected.
• For amounts over $6,000, the discount is 0.9%, plus an additional $18 from the first $6,000 calculation.
• The maximum discount you can claim is $500 per return.
• For vendors filing consolidated returns, the $500 maximum applies across all combined filings.

Filing Amended Returns

Filing Zero Returns in Maryland

Other Filing Methods in Maryland

• File with TaxHero – Let expert accountants in TaxHero prepare your sales tax returns for you. We’ll take everything off your hands so that you can spend your time more efficiently managing your business. 
• Maryland Tax Connect (primary method) – Maryland has moved sales & use filings to Maryland Tax Connect. The state prefers and currently uses this system for filing and paying.
• Independent software provider or professional preparer – You can use approved third-party software or work with a tax professional who files through Maryland’s electronic channels. br_spacer]

Let TaxHero Manage Your Maryland Sales Tax Returns

If you run an Ecommerce or CPG business in New Mexico, securing a New Mexico Resale Certificate is a smart move to protect your margins and streamline operations.

This certificate lets you buy inventory and raw materials tax-free. It helps lower upfront costs, keep your prices competitive, and stay compliant with New Mexico Gross Receipts Tax laws.

Understanding Resale Certificates in New Mexico

What is a New Mexico Resale Certificate?

In New Mexico, the state refers to a resale certificate as a Nontaxable Transaction Certificate (NTTC). The New Mexico Taxation and Revenue Department (TRD) issues the NTTC to:

• Purchase goods without their supplier incurring gross receipts tax on the sale, provided these goods are intended for resale to their customers in the normal course of their business.
• Claim deductions from gross receipts when buyers present a valid NTTC to their suppliers for qualifying transactions.

The NTTC helps prevent double taxation. It removes tax at both the wholesale and retail stages of the transaction. However, businesses must still collect gross receipts tax from customers when required.

Why do you need a New Mexico Resale Certificate?

Obtaining a resale certificate in New Mexico offers several significant advantages for businesses that purchase goods for resale.

Here are some key benefits:

• Avoid Paying Sales Tax on Inventory: The most direct benefit is purchasing inventory and materials that will be resold to customers without paying New Mexico’s sales tax upfront. 
• Maintain Competitive Pricing: By not paying sales tax on the cost of goods, businesses have more flexibility in setting competitive prices for products in the New Mexico market. This can be a crucial advantage, especially in price-sensitive industries.
• Legal Compliance: Possessing and using a valid resale certificate for eligible purchases ensures that businesses comply with New Mexico’s sales tax laws and regulations, thereby avoiding penalties.

In New Mexico, the required resale certificate is the Nontaxable Transaction Certificate (NTTC). When completing an application for an NTTC (Form ACD-31050), the buyer must include their CRS or NM Tax ID to show they are registered with the TRD. You can access the official application form here: Form ACD-31050 – Application for NTTC.

Resale Certificate vs. Sales Tax Permit: What’s the Difference?

A New Mexico Sales Tax Permit (also called a CRS number or NM Tax ID) allows your business to collect and remit gross receipts tax on sales made to customers.

A New Mexico Resale Certificate (NTTC), in contrast, the NTTC lets you purchase goods tax-free from suppliers if those items are intended for resale. 

To issue or use an NTTC, your business must first be registered with the state and hold an active New Mexico sales tax permit.

Who Can Use a Resale Certificate in New Mexico?

Businesses that purchase goods for resale can use a New Mexico Resale Certificate, formally known as a Nontaxable Transaction Certificate (NTTC). The requirements to use one vary depending on whether the business is located in New Mexico or out-of-state. 

To issue and use an NTTC, a business must be actively engaged in reselling taxable tangible goods and must hold a valid New Mexico Sales Tax Permit (CRS Number).

Once registered, the business can obtain NTTCs through the Taxpayer Access Point (TAP) or by submitting Form ACD-31050 for paper certificates. These NTTCs are then presented to vendors to make qualified tax-exempt purchases.

For Out-of-State Businesses: Out-of-state businesses that buy from New Mexico suppliers for resale outside the state may still qualify for a resale exemption. This applies even if they’re not required to register with the TRD. In such cases, one of the following may apply:

• The buyer may provide the Multistate Tax Commission’s Uniform Sales & Use Tax Certificate, if accepted by the vendor.
• The buyer may use the Border States Uniform Sale for Resale Certificate (Form 60-008.1). It is valid for purchases by businesses in AZ, CA, OK, TX, UT, and Mexico under qualifying conditions.
• Alternatively, the seller may issue a Type OSB NTTC to the out-of-state buyer through the TAP portal, specifically for transactions involving tangible goods transported outside of New Mexico.

How to Get a Resale Certificate in New Mexico: A Step-by-Step Guide

Getting a resale certificate in New Mexico 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 be engaged in selling taxable goods or services in New Mexico and be registered with the New Mexico Taxation and Revenue Department (TRD). Only businesses that hold an active New Mexico Sales Tax Permit can apply for and use a Nontaxable Transaction Certificate (NTTC).

2. Get a New Mexico Sales Tax Permit

If you don’t already have one, apply for a New Mexico Sales Tax Permit through the Taxpayer Access Point (TAP). You’ll need this permit before you can apply for or use a Nontaxable Transaction Certificate (NTTC).

Need help? Read our blog: How to Get a Seller’s Permit in New Mexico

3. Gather Your Business Information: You’ll need basic business details to complete the resale certificate, including:

• Business Identification Information: Legal Business Name, Physical Address, Mailing Address
• Business Entity Structure (i.e., Sole Proprietorship, Partnership, Subchapter S Corp., Corporation, LLC, etc.)
• Federal Employer Identification Number (EIN or FEIN)
• Name, Address, and SSN of Owners, Partners, or Officers
• Business Activity Details: Date & State of Incorporation
• Copy of your IRS Notice Letter CP 575/EIN Confirmation Letter
• NAICS Code

4. Complete Form ACD-31050

Download and fill out Form ACD-31050, Application for Nontaxable Transaction Certificates (NTTC), available on the TRD website or directly through TAP. This form allows you to request paper NTTCs for resale purchases.

You’ll present these NTTCs to suppliers when making tax-exempt purchases of qualifying items. You can also apply for and manage NTTCs electronically through the TAP portal without needing to print them.

5. Submission

Once you get your NTTCs, either paper or through TAP, you must give them to suppliers when making tax-exempt purchases. If you’re using paper NTTCs, you might need to report the executed NTTC to the TRD by submitting a Nontaxable Transaction Certificate Report (Form ACD-31098) or by logging the execution online through TAP.

If you’re using NTTC-NET, New Mexico’s electronic NTTC system, the system automatically records NTTC executions. By completing them online, it eliminates the need for additional paperwork.

6. Pay Any Applicable Fees

The New Mexico Sales Tax Permit is issued free of charge. There are no state-level fees associated with obtaining this permit.

7. Understanding Validity and Compliance

Your NTTCs stay valid as long as your New Mexico Sales Tax Permit remains active and compliant (CRS Number) with the TRD. While NTTCs, whether issued electronically or as 1992 Series paper certificates, typically do not have a printed expiration date.

Your ability to make tax-exempt purchases depends entirely on keeping your tax registration in good standing. Suppliers must accept valid NTTCs in good faith. They can verify the buyer’s CRS number using the TAP verification tool.

How to Use a Resale Certificate in New Mexico

To properly use a resale certificate in New Mexico, you must present a valid Nontaxable Transaction Certificate (NTTC) to your supplier at the time of purchase. NTTCs can be managed electronically through the Taxpayer Access Point (TAP) or issued in paper form using Form ACD-31050.

New Mexico’s deduction resale exemption system is unique: the state generally does not broadly accept resale certificates issued by other states as a substitute for an NTTC.

However, there are a few exceptions that allow certain multi-jurisdictional certificates to be used under specific conditions.

Here’s what sellers and buyers need to know:

• NTTC Required: For most resale transactions, by New Mexico-registered buyers, the buyer must provide a valid NTTC to the seller. This document allows the seller to deduct the transaction from gross receipts tax.
• Out-of-State Buyers: If you’re an out-of-state buyer purchasing goods from a New Mexico vendor and are not required to register with the state, you may be able to use an approved multi-jurisdictional form if the vendor agrees to accept it and all requirements are met.
  Acceptable alternatives include the Multistate Tax Commission’s Uniform Sales & Use Tax Certificate or the Border States Uniform Sales for Resale Certificate (Form 60-008.1), which applies to buyers based in border states such as AZ, CA, OK, TX, UT, and Mexico.
• Vendor Responsibility: Sellers must ensure they receive a properly completed NTTC or accepted alternative documentation before excluding gross receipts tax from the sale. Failure to do so could result in liability during an audit.

For more details or to manage NTTCs electronically, visit the official TAP portal: https://tap.state.nm.us.

Multi-Jurisdictional Resale Certificates

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.

• Uniform Sales & Use Tax Resale Certificate – Multijurisdiction Form: Issued by the Multistate Tax Commission, some New Mexico vendors may accept this certificate, but only for tangible personal property intended for resale or incorporation into a manufactured product for resale.
  It is generally not accepted for the purchase of taxable services for resale, which typically require a New Mexico NTTC.
• Border States Uniform Sale for Resale Certificate (Form 60-008.1): This certificate is intended for buyers in Arizona, California, Oklahoma, Texas, Utah, or Mexico who purchase goods for resale and have them shipped out of New Mexico.
  Vendors can accept this form instead of an NTTC if the transaction qualifies those border-state criteria and the property will be transported across state or national boundaries for resale.
• Streamlined Sales Tax (SST) Certificate of Exemption: While New Mexico is not a member of the Streamlined Sales Tax (SST) Agreement, some sellers may decide to accept this form at their own discretion.
  However, it is not officially recognized as a substitute for a valid NTTC, and sellers bear the risk during audits if they rely solely on this document.

Businesses need to verify whether New Mexico 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.

Responsibilities When Using or Accepting a New Mexico Resale Certificate

Buyer Responsibilities

Using or accepting a New Mexico resale certificate, formally known as a Nontaxable Transaction Certificate (NTTC), buyers and sellers each carry specific legal responsibilities when using or accepting an NTTC.. Misuse can result in penalties, back taxes, or audit exposure for both parties. Here’s what buyers and sellers need to know.

• New Mexico-based buyers: If your business is registered in New Mexico and holds an active CRS number (New Mexico Business Tax ID), you must obtain the appropriate NTTC type (e.g., Type 2 for tangible personal property for resale) for your specific resale activity.
  These are categorized by transaction type, and you must apply for the correct one via the Taxpayer Access Point (TAP) or using Form ACD-31050.
  You only need one NTTC per seller for all qualifying transactions of the same type, but you must ensure it’s properly executed and recorded (if a paper NTTC) before claiming any deductions.
• Out-of-state buyers: If you’re not registered in New Mexico, you cannot obtain a standard NTTC from the state as a New Mexico-registered business.
  However, you may be able to use a Multistate Tax Commission Uniform Sales & Use Tax Certificate or the Border States Certificate for certain resale transactions, provided the New Mexico vendor accepts it and the transaction meets New Mexico’s statutory requirements for such certificates.
  You are responsible for making sure the documentation is accurate and presented at the time of purchase. These forms are only valid for tangible goods, not for taxable services in New Mexico.

Seller Responsibilities

As a New Mexico seller, you’re legally responsible for ensuring resale certificates (NTTC or alternatives) are valid and properly stored. Here’s what you must do:

• Accept the certificate in good faith
• Ensure it includes all required information: buyer’s name, address, sales tax permit number (or equivalent), reason for exemption, and signature
• Reject the certificate if the items aren’t for resale (e.g., personal or business use)
• Keep records for at least 4 years: The standard audit window for Gross Receipts Tax in New Mexico is three years.
  But the TRD can extend it up to ten years for non-filing, fraud, or major underreporting. Best practice is to keep all resale documents, including NTTCs and alternatives, for at least four years for audit protection.
  This retention period matches industry standards and protects your business during extended audits or retroactive tax assessments.

Frequently Asked Questions About the New Mexico Resale Certificate

Are There Penalties for Misusing a New Mexico Resale Certificate?

Yes. Misusing a resale certificate, formally referred to as a Nontaxable Transaction Certificate (NTTC), can lead to serious penalties. Using an NTTC to avoid tax on personal or business-use purchases (such as office equipment) is illegal.

Penalties vary based on the nature of the violation and may include fines, back taxes, and interest. The New Mexico Taxation and Revenue Department warns that false claims or deductions may lead to assessments or legal action.

Always use NTTCs only for qualified resale transactions, and ensure the form is properly executed and documented.

Does a New Mexico Resale Certificate Expire?

New Mexico’s paper resale certificates (NTTCs from the 1992 Series) do not have an expiration date. Once executed, these certificates remain valid as long as the buyer’s New Mexico Sales Tax Permit (CRS number) remains active.

NTTCs issued through the Taxpayer Access Point (TAP) are only valid while your tax registration remains active. If your permit becomes inactive, revoked, or cancelled, the NTTC is invalid even if it looks complete and correct.

How Do I Verify a Resale Certificate in New Mexico?

You must verify each resale certificate before excluding gross receipts tax from any transaction. Here’s how:

If you’re a seller in New Mexico, here’s how to validate a buyer’s resale certificate:

1. Step 1: Request a completed NTTC or multistate certificate from the buyer.
2. Step 2: Locate the buyer’s New Mexico CRS number on the form (this is their state-issued business tax ID).
3. Step 3: Visit the official Taxpayer Access Point (TAP). Use the “Check CRS Status” tool to confirm whether the permit is active.

How TaxHero Can Help

You don’t have to complicate managing sales tax compliance and resale certificates in New Mexico. TaxHero simplifies the process, from keeping your New Mexico 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 New Mexico process today!

If you run an Ecommerce or CPG business in Missouri, securing a Missouri Sales Tax License is a smart move to protect your margins and streamline operations.

This license allows you to use a Sales/Use Tax Exemption Certificate (Form 149) to purchase inventory and raw materials tax-free, helping you lower upfront costs, stay competitive in pricing, and remain compliant with Missouri sales tax laws.

Understanding Resale Certificates in Missouri

What is a Missouri Resale Certificate?

In Missouri, a resale certificate is a type of sales and use tax exemption certificate. Businesses that have a valid Missouri Sales Tax License use Missouri Form 149, the Sales/Use Tax Exemption Certificate, to present to their suppliers, allowing them to:

• Purchase goods without paying sales tax, provided these goods are intended for resale to their customers in the normal course of their business.
• Make tax-exempt purchases of inventory and materials that will become part of the products they sell by presenting a valid resale certificate to their suppliers.

The purpose is to prevent double taxation, first at the wholesale level and then again at the point of retail sale.

However, a Missouri resale certificate is not a blanket exemption from all sales tax obligations. Businesses must still collect and remit sales tax on taxable sales made to end consumers.

Why do you need a Missouri Resale Certificate?

Obtaining an exemption certificate in Missouri offers several significant advantages for businesses that purchase goods for resale.

Here are some key benefits:

• Avoid Paying Sales Tax on Inventory: The most direct benefit is purchasing inventory and materials that will be resold to customers without paying Missouri’s sales tax upfront. 
• Maintain Competitive Pricing: By not paying sales tax on the cost of goods, businesses have more flexibility in setting competitive prices for products in the Missouri market. This can be a crucial advantage, especially in price-sensitive industries.
• Legal Compliance: Possessing and using a valid resale certificate for eligible purchases ensures businesses comply with Missouri’s sales tax laws and regulations to avoid penalties.

In Missouri, the legal way to claim a resale exemption is by using Form 149, the Sales/Use Tax Exemption Certificate.

When filling out Form 149, Missouri-based businesses must include their Missouri tax ID number to identify that it is registered with the Missouri DOR and authorized to make tax-exempt purchases for resale.

Businesses without a Missouri tax ID number, such as those located in other states, can still purchase goods tax-exempt for resale in Missouri. These businesses may be able to use a resale certificate from their home state if it is a member of the Multistate Tax Commission (MTC) or if a reciprocity agreement exists.

Out-of-state businesses need to verify with their suppliers what documentation is required.

Resale Certificate vs. Sales Tax Permit: What’s the Difference?

In Missouri, a Sales Tax Permit is typically referred to as a “Retail Sales Tax License.” This license authorizes your business to collect and remit sales tax on taxable sales to customers.

A Missouri Exemption Certificate (Form 149) allows you to purchase goods tax-free from suppliers if those goods are intended for resale. To use an Exemption Certificate, you must have an active retail sales tax license if you’re a Missouri-based buyer.

Out-of-state buyers not required to register in Missouri (e.g.,  no nexus) can provide their home state’s tax ID number.

Who Can Use a Resale Certificate in Missouri?

Businesses that purchase goods for resale can use a Missouri Sales/Use Tax Exemption Certificate (Form 149). To do so, in-state businesses must actively sell taxable tangible products and hold a valid Missouri Retail Sales Tax License.

Aside from Missouri-based retailers, other businesses can also qualify to use the Form 149. To meet those qualifications, you must follow specific guidelines based on your business type:

• Out-of-state businesses not required to hold a Missouri Sales Tax License: You can still use the Form 149 to make tax-exempt purchases for resale in the state. To do so, you must provide your home state’s tax ID number on the form instead.
  This applies to registered businesses authorized to collect sales tax in their home state and do not have nexus in Missouri. However, keep in mind that having a Missouri nexus means you’re generally required to register your business in the state.
  NOTE: Without a Missouri Retail Sales Tax License, you cannot use the Form 149 to purchase taxable services for resale.
• Wholesalers or Manufacturers: Wholesalers who make no retail sales, or manufacturers, may not need a Missouri retail sales tax license. However, they must still register with the Missouri Department of Revenue to obtain a tax ID number to use on the Form 149 to purchase goods for wholesale.
  To complete the Form 149 without a retail sales tax license number, you must check the appropriate box on the certificate.
• Vehicle Dealers: Businesses purchasing items to repair vehicles for resale in Missouri can use the Form 149 to be tax-exempt. However, you must also have a Missouri Dealer License Number to properly complete the exemption certificate.
  NOTE: Registered vehicle dealers will need another form when purchasing tires or paying battery fees. For those transactions, you must use the Form 149T, the Exemption Certificate for Tire and Lead-Acid Battery Fee.

How to Get a Resale Certificate in Missouri: A Step-by-Step Guide

Getting a resale certificate in Missouri 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 Missouri Department of Revenue (Missouri DOR). Aside from registered purchasers, check your eligibility below. You must be one of the following:

• Missouri-based Retailer: You’re required to have a valid Missouri Retail Sales Tax License.
• Out-of-State Business Without a Missouri Nexus: You must have a valid sales tax ID number from your home state.
• Wholesaler or Manufacturer (without retail sales): You must still be registered with the Missouri DOR to obtain a tax ID number, which you will use on the Form 149.
• Vehicle Dealers: You must have a Missouri Dealer License Number.

2. Get a Missouri Retail Sales Tax License: If you don’t already have one, apply for a Missouri Retail Sales Tax License through the MyTaxMissouri website. This permit is generally required when issuing or using the Missouri exemption certificate if you have a nexus in Missouri and are making taxable retail sales.

Note: Having a business location in Missouri and making retail sales means that getting a Retail Sales Tax License is mandatory regardless of your nexus. Making retail sales at a business location in Missouri without a license subjects you to penalties defined by Section 144.118.

Need help? Read our blog: How to Get a Seller’s Permit in Missouri

3. Out-of-State Buyers Without a Missouri Nexus: To obtain the Missouri Sales and Use Tax Exemption Certificate (Form 149), you must be a registered retailer in your home state. That’s because you must provide your home state’s sales tax permit or ID number to complete the form properly.

Without a valid sales tax ID, you cannot use or issue the Missouri Exemption Certificate unless you’re a wholesaler or manufacturer who has a Missouri tax ID number for wholesale purchases. You also can’t use the Form 149 to purchase taxable services for resale without a Missouri Retail Sales Tax License.

Once you have a sufficient nexus in Missouri, you’re generally required to register for a Missouri Retail Sales Tax License. Failing to register your business can result in penalties under Section 144.118.

4. Gather Your Business Information: You’ll need basic business details to complete the resale certificate, including:

• Your business’s legal name and any trade names.
• Your business address and contact information.
• Your Federal Employer Identification Number (FEIN) or Social Security Number (SSN) if you’re a sole proprietor.
• Your Missouri sales tax ID number (for Missouri-based retailers).
• Your home state’s tax ID number (for out-of-state retailers).
• Your business type (e.g., sole proprietorship, LLC, corporation).

5. Complete the Form 149: Download and fill out the Missouri Sales and Use Tax Exemption Certificate (Form 149) from the Missouri DOR’s website. You’ll present this form to your suppliers when making tax-exempt purchases.

6. Submission: No submission required in Missouri. You don’t submit the exemption 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 149, but you’ll need a valid Missouri Retail Sales Tax License (or tax ID number for wholesalers and manufacturers). Out-of-state purchasers will need a sales tax permit from their home state as well. In Missouri, registering for a sales tax license is free.

8. Understand Renewal Requirements: The Missouri exemption certificate itself has no specified expiration date. However, a single-use or blanket exemption certificate’s validity solely depends on 3 essential factors:

• Your sales tax permit – an inactive license means your exemption certificate becomes invalid. For buyers with a Missouri sales tax license, your license does not need to be renewed. However, it can still be revoked by the Missouri DOR.
• Your business or transaction details – if there are significant changes to your business details, you must update your exemption certificate. These changes typically refer to a shift in the business’s structure or a change in the nature of the transaction.
• Taxability changes – as tax rules constantly change, a purchaser may inform suppliers if they no longer qualify for specific sales tax exemptions. In this case, the certificate becomes invalid and must be updated accordingly.

When claiming an exemption for a specific transaction, a purchaser can issue a blanket certificate to cover all recurring purchases for resale. If you are making a one-time purchase, you can use a single-use certificate.

Updating your exemption certificate based on these variable aspects is crucial to keep your Missouri suppliers up to date. By keeping your records accurate, you and your supplier can stay compliant with Missouri’s sales tax regulations and prevent audits.

How to Use a Missouri Resale Certificate

To properly utilize your resale certificate in Missouri when making tax-exempt purchases for resale, you’ll need to present a valid copy of your Missouri Exemption Certificate to your supplier at the time of purchase.

Missouri generally accepts exemption certificates issued by other states. You must meet Missouri’s standards requirements for a completed exemption certificate, regardless of which exemption or resale certificate you’ll provide.

That means Missouri vendors will only accept exemption certificates under the following conditions defined by the state’s code of regulations:

• Good Faith Acceptance: Vendors in Missouri will typically accept an out-of-state resale certificate in good faith, provided it contains all the necessary information (buyer’s name, address, sales tax license number from the issuing state, reason for exemption, etc.).
  Accepting a resale or exemption certificate relieves the vendor from sales tax liabilities as stated in RSMo Section 32.200.
• Reciprocity: According to RSMo Section 136.073, Missouri authorizes reciprocal agreements with other states, including the District of Columbia. These agreements primarily relate to the enforcement and collection of sales and use taxes between states.
  While Missouri accepts many out-of-state certificates, a vendor’s acceptance is based on their “good faith” evaluation of the certificate, not a blanket guarantee from the reciprocity agreement.
• Meet Compliance Requirements: To use the Form 149 as an out-of-state buyer in Missouri, you must comply with the certificate’s specified rules. That means you must:
  • Provide a valid sales tax ID number from your home state instead (if you have no nexus in Missouri)
  • Register for a Retail Sales Tax License (only if you have a sufficient nexus in Missouri.
    NOTE: Without a valid sales tax ID, Missouri vendors may decline your exemption certificate. Keep in mind that an incomplete Form 149 is considered invalid. If that occurs, vendors must collect sales tax from the transaction.
• Use other resale certificates, such as the Uniform Sales & Use Tax Resale Certificate – Multijurisdiction Form: Missouri vendors typically accept this form from out-of-state buyers. To ensure this form is used appropriately, you must know that:
  • Improperly using this certificate can subject you to penalties (including additional fees, interests, and the burden of paying the tax).
  • If a Missouri-based vendor makes the purchase and delivers the goods within the state, the transaction may still be subject to Missouri sales tax, as Missouri has an origin-based sales tax rule for in-state sales.

If you run an out-of-state business and plan to buy from a vendor in Missouri using your home state’s resale certificate, be ready to present it at the time of purchase.

However, keep in mind that Missouri vendors have the option to decline other resale certificates based on their discretion. To ensure a smooth transaction, confirm your Missouri supplier’s policy on accepting out-of-state resale certificates beforehand. This practice also helps prevent audit issues.

For more information regarding sales tax exemption laws in Missouri, you may read Missouri’s Code of Regulations.

Multi-Jurisdictional Resale Certificates

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 two primary types of multi-jurisdictional resale certificates that a business operating in or selling to vendors in Missouri might encounter:

• Uniform Sales & Use Tax Resale Certificate – Multijurisdiction Form: This is a widely recognized form accepted by a significant number of states (though not all). Missouri accepts the form, but only if you properly complete it.
  To accurately use the MTC form for resale purchases in Missouri, you must follow the state’s standard regulations stated below:
  • Missouri-based Vendors: You must provide your Retail Sales Tax License number on the form. Businesses with a physical location in Missouri and making retail sales must register for a retail sales tax license regardless of their nexus status.
    Making taxable retail sales in-state without the required license subjects businesses to penalties defined in the RSMo Section 144.118.
  • Unregistered Buyers: Out-of-state buyers without a Missouri nexus do not need to hold a Missouri sales tax license. However, you must still provide your home state’s sales tax ID number or any equivalent to complete the MTC form.
    Keep in mind that once you establish a sufficient nexus in Missouri, registering your business becomes mandatory.
  • Wholesalers or Manufacturers: You may use the MTC form, but you must still provide a Missouri tax ID number on the form. This unique exception applies to businesses making only wholesale sales or purchasing goods for manufacturing products in Missouri.
    These businesses are not required to hold a retail sales tax license but are still required to register with the Missouri Department of Revenue.
  • Vehicle Dealers: Provide your Missouri Dealer License Number on the form when purchasing items to be used for repairing vehicles being resold.
  • Usage Rules: Beware that the improper use of the MTC form results in the invalidation of your sales tax exemption. You may also end up paying the sales tax, interest, additional fees, and face penalties imposed by the Missouri DOR.
    If you are a Missouri-based seller and you ship goods to an out-of-state buyer, the sale is not subject to Missouri sales tax.
    To get this form, visit the Multistate Tax Commission (MTC) website.
• Streamlined Sales Tax (SST) Certificate of Exemption: Missouri is not a member of the Streamlined Sales Tax Governing Board. Therefore, while a Missouri vendor might accept an SST Certificate of Exemption, they are primarily looking for a Missouri Exemption Certificate (Form 149) or the Uniform Sales & Use Tax Resale Certificate.
  You can find more information about the SST and its member states on the Streamlined Sales Tax Governing Board website.

For a seamless transaction, inquire about your Missouri supplier’s policies on accepting various types of resale certificates beforehand. This practice also helps prevent potential audit issues.

Responsibilities When Using or Accepting a Missouri Resale Certificate

Buyer Responsibilities

Using a Missouri exemption certificate means you’re 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.

Since the Form 149 allows a variety of businesses to use the form, different buyers carry different responsibilities:

• Missouri-based buyers: Provide a fully completed Missouri Exemption Certificate to your suppliers for qualifying purchases. You can also use the multijurisdiction (MTC) resale certificate as long as you properly complete it.
  Having a physical business location in Missouri means you must be registered with the Missouri DOR.
  Making retail sales in-state without a Retail Sales Tax License subjects your business to non-compliance risks or a misdemeanor charge. These risks may also lead to penalties defined by Section 144.118.
  Registration is mandatory regardless of your nexus status, as long as you have a physical business location in Missouri.
• Buyers without a Missouri Retail Sales Tax License: As stated in the Form 149, you cannot claim an exemption on the purchase of taxable services for resale. Examples of taxable services in Missouri are sales of:
  • Restaurants, hotels, or motels
  • Telecommunications and utilities
  • Games or athletic events not at arm’s length
  • Amusement, entertainment, or recreation parks
• Wholesalers or Manufacturers: Wholesalers who only sell to other wholesalers and manufacturers have a unique exception when using the Form 149. They do not need a Missouri Retail Sales Tax License.
  However, they must still be registered with the Missouri Department of Revenue to obtain a tax ID number to use on the form.
  These wholesalers must ensure their purchased goods qualify for the sales tax exemption. For example, a manufacturer must guarantee that the purchased goods are for manufacturing products meant for sale.
• Out-of-State Buyers: Your duties vary depending on your business’s economic nexus standing with the state of Missouri.
  • Without a Missouri Nexus: You must at least be a registered retailer in your home state. This way, you can provide a valid sales tax ID number from your state instead. Using the multijurisdiction resale certificate form is also an option if you can’t complete the Form 149.
  • With a Missouri Nexus: You’re required to register your business in the state. Remote sellers can establish a Missouri nexus once they reach a total of $100,000 in revenue from taxable sales.
    Having a physical business location in Missouri where you make taxable retail sales also defines you as a “Missouri-based retailer.” In that case, registering for a Retail Sales Tax License becomes mandatory, as previously mentioned.
• Vehicle Dealers: When purchasing items for repairing vehicles meant for resale, you may use the Form 149. However, presenting a valid Missouri Dealer License Number is required.
  In case you’re purchasing tires or paying battery fees for vehicles meant for resale, you must use the Form 149T. This form is the Exemption Certificate for Tire and Lead-Acid Battery Fee.

Seller Responsibilities

As a seller in Missouri, accepting an exemption certificate comes with the responsibility of verifying and retaining proper documentation for tax-exempt sales. According to Missouri’s Code of Regulation 10-107.100, vendors in Missouri must:

• Accept the certificate in good faith – This means acting with honesty and having no reason to believe the certificate is fraudulent. For example, a seller should not accept a resale certificate from a purchaser of lumber if they know the purchaser owns a retail clothing store.
• Ensure it includes all required information – The certificate must include the buyer’s name, address, sales tax permit number (or equivalent), reason for exemption, and signature.
• Reject the certificate if the items aren’t for resale (e.g., personal or business use).
• Charge sales tax on transactions where an exemption is no longer valid.
• Decline outdated exemption certificates and request an updated one if there are changes in the transaction. The Missouri Department of Revenue recommends updating blanket exemption certificates at least every five years.
• Collect sales tax when the buyer purchases goods intended for personal consumption (instead of resale purposes).

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 three years (or five years as recommended by the Missouri Department of Revenue) in case of a sales tax audit by the Missouri DOR.

Frequently Asked Questions About the Missouri Resale Certificate

Are There Penalties for Misusing a Missouri Resale Certificate?

Yes. Intentionally misusing the Exemption Certificate (Form 149) leads to sales tax penalties in Missouri. Under the RSMo Section 143.911, offenders who willfully attempt to or intentionally evade tax may be charged with:

• A fine not exceeding $10,000.
• Imprisonment in the county jail for not more than one year, or both a fine and imprisonment.
• Imprisonment in the state penitentiary for not more than five years, or both a fine and imprisonment.

Does a Missouri Resale Certificate Expire?

The exemption certificate (Form 149) itself has no specified expiration date. However, it is generally only valid while your Missouri Retail Sales Tax License remains active. The same rule applies when using out-of-state sales tax ID permits. 

If the authorities revoke or mark your permit as inactive, you lose the validity of your exemption certificate. You must also update blanket certificates accordingly to keep the exemption certificate valid. The Missouri Department of Revenue recommends that sellers have a policy of renewing blanket exemption certificates at least every five years.

How Do I Verify a Missouri Resale Certificate?

The primary way to verify a Missouri exemption certificate (Form 149) is by contacting the Missouri DOR. Currently, online verification is not an option. 

You may call the Missouri DOR at (573) 751-2836 for assistance or send an email via salestaxexemptions@dor.mo.gov. 

When you contact the department,  provide the buyer’s business name and their Missouri sales tax ID number to assist the representative in verifying the information.

How TaxHero Can Help

You don’t have to complicate managing sales tax compliance and resale certificates in Missouri. TaxHero simplifies the process. From keeping your Missouri Retail Sales 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 Missouri process today!

Filing your Illinois sales tax return is simple with the state’s online system. You can file and pay directly through MyTax Illinois, as long as your business is registered to collect and remit sales tax.

This guide will walk you through the step-by-step process of filing online so you can submit returns on time, avoid penalties, and stay compliant with Illinois’s sales tax rules.

What You Need Before Filing

Before filing your sales tax return, you must prepare specific records to ensure your report is accurate. Here are the standard documents required to file a sales tax return in Illinois:

• Illinois Taxpayer Account Number (Sales Tax Permit) – You’re required to provide your Illinois sales and use tax account number to file your sales tax return. Once your registration with the Illinois Department of Revenue is approved, you should receive this documentation via mail. This number is your official business tax identification number with the IDOR.
  This number can be found on your Illinois Sales Tax Permit document.
• My Tax Illinois eServices Account Log-in Details – The primary way to file your Illinois sales tax return online is by logging onto your MyTax Illinois account. To access the site, ensure you have your log-in credentials ready (e.g., your username and password).
• Total Sales and Taxable Sales Data – Businesses must gather and report their total gross receipts for the filing period on Form ST-1, Line 1. This figure must include all revenue, regardless of whether it is taxable or not, including receipts from sales, leases, and rentals of merchandise and services. It also includes service charges, E911 Surcharge, and all state and local taxes collected.
   Even in periods with no sales, a return must still be filed. Businesses must also have a precise record of their taxable sales, which will be reported separately on the return.
• Gathering Taxable Purchases Records – In addition to reporting sales, businesses must also verify the total amount of taxable purchases made during the reporting period.
  This is crucial for correctly reporting use tax and applies to both in-state and out-of-state transactions.
• Managing Multiple Locations and Local Sales Tax Reporting – Businesses with more than one sales location in Illinois are required to file the Multiple Site Form (Form ST-2) as an attachment to their main ST-1 return.
  It is important to register all locations before filing to ensure the correct local tax rates are applied.
• Bank Account and Routing Number – Select which bank account you want to use for paying the due taxes in your report. Prepare your bank details and routing number ahead of time. This is required for electronic payments through MyTax Illinois.
• Filing Frequency Schedule – The state assigns a specific due date for every registered business. To find out your designated schedule, you can check your Illinois Sales Tax Permit document. This filing frequency (monthly, quarterly, or annually) is determined by the Illinois Department of Revenue based on your average monthly tax liability.

Step-by-Step: How to File Illinois Sales Tax Online

Due Dates

The filing frequency with which a business must file its sales tax returns in Illinois is not uniform. The IDOR determines the system based on the business’s average monthly tax liability.

Timely Filing Discount

Filing Amended Returns

Filing Zero Returns in Illinois

Other Filing Methods in Illinois

• File with TaxHero – Let expert accountants in TaxHero prepare your sales tax returns for you. We’ll take everything off your hands so that you can spend your time more efficiently managing your business.
• File by mail – Fill up Form ST-1 and file and pay through the mail.
  Note: Electronic filing is mandatory for all taxpayers who have an average monthly tax liability of $5,000 or more.
• File through a Third-Party Software Vendor – File through approved third-party software vendors that integrate with the IDOR system.

Let TaxHero Manage Your Illinois Sales Tax Returns

Need help filing your Georgia sales tax online? TaxHero’s step-by-step guide makes it simple, or let us file your business returns for you.

Filing your Georgia sales tax return is simple with the state’s online system. You can file and pay directly through the Georgia Tax Center (GTC) website, as long as your business is registered to collect and remit sales tax.

This guide will walk you through the step-by-step process of filing online so you can submit returns on time, avoid penalties, and stay compliant with Georgia’s sales tax rules.

What You Need Before Filing

Before filing your sales tax return, you must prepare specific records to ensure your report is accurate. Here are the standard documents required to file a sales tax return in Georgia:

• Georgia Taxpayer Account Number (Sales Tax Permit) – You’re required to have a Georgia sales and use tax account number to file your sales tax return. Once your registration with the Georgia Department of Revenue (GADOR) is approved, you should receive your account details electronically.
• Georgia Tax Center (GTC) Account Log-in Details – The primary way to file your Georgia sales tax return online is by logging onto your GTC account. To access the site, ensure you have your log-in credentials ready (e.g., your username and password)..
• Total Sales – Gather your total revenue during the filing period. This includes all sales, whether they’re taxable or not. Even if you currently have no sales records, you’re still required to file a return.
• Taxable Sales – Compile the total taxable sales your business made within the filing period. You’ll need this data to determine how much sales tax you owe and must pay for the filing period.
• Taxable Purchases – Verify the total amount of taxable purchases your business spent within the filing period. This applies to both in-state and out-of-state transactions.
• Separate Sales By Location ID – If applicable, separate all your taxable sales by location ID. Make sure you use the correct jurisdiction code.
  Businesses that have 4 or more separate locations must submit a consolidated return using a primary sales tax number.
• Bank Account and Routing Number – Select which bank account you want to use for paying the due taxes in your report. Prepare your bank details and routing number ahead of time.
• Filing Frequency Schedule – The state assigns a specific due date for every registered business. In Georgia, most new businesses follow a monthly filing period. The Georgia Department of Revenue determines your filing frequency based on your sales tax liability. You may be assigned to a monthly, quarterly, or annual filing schedule.
  You can also check your assigned filing schedule through your Georgia Sales Tax Certificate.

Step-by-Step: How to File Georgia Sales Tax Online

Due Dates

In Georgia, newly registered taxpayers typically file and report monthly. Monthly due dates generally fall on the 20th of the following month. However, the GADOR may move the due date ahead if the 20th falls on a weekend or a holiday.

Timely Filing Discount

• 3% discount on the first $3,000 of sales and use tax paid.
• 0.50% discount on the amount exceeding the first $3,000 of sales and use tax paid.

How to Change Filing Frequency

• Quarterly Filing – For businesses with a sales and use tax liability of less than $200 per month within a consecutive 6-month period.
• Annual Filing – For businesses with a sales and use tax liability of less than $50 per month within a consecutive 6-month period.
• Special Period Filing – Businesses can request a special filing period by providing a valid reason. When filing for a special period, the return must be submitted annually by November 1st, specifying the reporting periods for the next calendar year. Failing to comply with the due date may result in the cancellation of your special period filing privilege.

Filing Amended Returns

• Step 1: Log in to your GTC online tax account.
• Step 2: In the Account Summary section, select the filing period you wish to amend. Then, click the “View Return” option.
• Step 3: Click on the “Amend” button and proceed to correct your return.
• Step 4: Complete all necessary fields just like filing your original sales tax return.
• Step 5: After reviewing the adjusted details, submit your amended return.

Refunds

• Step 1: Log in to your GTC online account. After logging in, locate the “Summary” tab.
• Step 2: Choose “Sales & Use Tax Account” and click on the “See more…” link.
• Step 3: Select “Request Refund” under the “Manage My Account” section.
• Step 4: Fill out the required information to validate your refund claim.
• Step 5: Select your preferred payment option to receive your refund. Complete any additional prompts, such as providing your bank details if you select the “Direct Deposit” option.
• Step 6: Attach any additional documents to support your claim.
• Step 7: Review the summary of your refund request. After confirming everything is accurate, you may now submit your claim.

Filing Zero Returns in Georgia

Other Filing Methods in Georgia

• File with TaxHero – Let expert accountants in TaxHero prepare your sales tax returns for you. We’ll take everything off your hands so that you can spend your time more efficiently managing your business.
• File by Mail – The Georgia Department of Revenue has made electronic filing mandatory for most businesses. Paper filing is generally only permitted for taxpayers who are not required to file electronically or in specific, limited circumstances.
  If you are eligible to file by mail, you can download the Form ST-3 (Sales and Use Tax Returns and Addendums) from the Georgia Department of Revenue website. Fill out the required fields, then mail it to the address provided on the form.

Let TaxHero Manage Your Georgia Sales Tax Returns