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.
In Wisconsin, a Sales and Use Tax Exemption Certificate (Form S‑211) allows businesses to:
The purpose is to prevent double taxation once at the wholesale level and again at the point of retail sale.
However, a 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.
Obtaining a resale certificate in Wisconsin offers several significant advantages for businesses that purchase goods for resale.
Here are some key benefits:
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).
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.
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.
Getting a resale certificate in Wisconsin is straightforward, but you must meet a few requirements first.
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.
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
You’ll need basic business details to complete the resale certificate, including:
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.
Do not submit the resale certificate to the state. Give the completed form directly to your suppliers when buying items for resale.
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.
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.
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:
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 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:
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.
As a seller in Wisconsin, you share responsibility for ensuring proper use of resale certificates. You must:
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.
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.
To confirm a buyer’s resale certificate:
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 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.
In Minnesota, a Certificate of Exemption (Form ST3) is a document issued by the Minnesota Department of Revenue that allows businesses to:
The purpose is to prevent double taxation once at the wholesale level and again at the point of retail sale.
However, a 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.
Obtaining a resale certificate in Minnesota offers several significant advantages for businesses that purchase goods for resale.
Here are some key benefits:
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.
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.
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.
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:
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.
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:
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:
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.
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.
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:
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.
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.
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.
If you’re a seller in Minnesota, online verification is not available. Here’s how to validate a buyer’s resale certificate:
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
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:
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.
Obtaining an exemption certificate in South Dakota offers several significant advantages for businesses that purchase goods for resale.
Here are some key benefits:
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.
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.
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:
For businesses without a South Dakota sales tax license, see if the following options apply to you or your business.
For other entities that may want to use the South Dakota SST Exemption Certificate, read all the exemptions allowed here.
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:
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.
4. Gather Your Business Information: You’ll need basic business details to complete the resale certificate, including:
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.
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.
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:
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:
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.
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:
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.
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.
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.
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.
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:
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:
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.
Yes. Misusing South Dakota’s SST Exemption Certificate or Form 2040 leads to penalties such as:
Learn more via South Dakota’s Statute Law 10-45-61, which details the responsibilities of the purchaser.
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.
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.
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 Arkansas, securing an Arkansas Resale Certificate is a smart move to protect your margins and streamline operations.
This certificate allows you to purchase inventory and raw materials tax-free, helping you lower upfront costs, stay competitive in pricing, and remain compliant with Arkansas sales tax laws.
In Arkansas, an Exemption Certificate is a document issued by the Arkansas Department of Finance and Administration that allows businesses to:
The purpose is to prevent double taxation once at the wholesale level and again at the point of retail sale.
However, an Arkansas resale certificate is not a blanket exemption from all sales tax obligations. Businesses are still required to collect and remit sales tax on taxable sales to end consumers.
Obtaining an Exemption Certificate in Arkansas offers several significant advantages for businesses that purchase goods for resale.
Here are some key benefits:
In Arkansas, the specific form required for a resale certificate is the Arkansas Exemption Certificate (ST-391).
When filling out Form ST-391, the purchaser must include the Sales/Use Tax Permit Number to show that they are registered with the Arkansas Department of Finance and Administration and authorized to make tax-exempt purchases for resale.
An Arkansas Sales Tax Permit authorizes your business to collect and remit sales tax on taxable sales to customers. An Arkansas Exemption Certificate (ST-391), on the other hand, allows you to purchase goods tax-free from suppliers if those goods are intended for resale. To use a resale certificate, you must have an active sales tax permit.
Businesses that purchase goods for resale can use an Arkansas Exemption Certificate. To do so, the business must actively sell taxable tangible products and hold a valid Arkansas Sales Tax Permit.
Getting a resale certificate in Arkansas is simple, but you’ll need to meet a few key requirements first. Here’s how to do it:
1. Make Sure You’re Eligible: Your business must sell taxable goods or services and be registered with the Arkansas Department of Finance and Administration. Only businesses with a valid Arkansas Sales Tax Permit can use a resale certificate.
2. Get an Arkansas Sales Tax Permit: If you don’t already have one, apply for an Arkansas Sales Tax Permit through the Arkansas Taxpayer Access Point (ATAP) website. This permit is required before you can issue or use a resale certificate.
Need help? Read our blog: How to Get a Seller’s Permit in Arkansas
3. Gather Your Business Information: You’ll need basic business details to complete the resale certificate, including:
4. Complete Form ST-391: Download and fill out the Arkansas Exemption Certificate (Form ST-391) from the Arkansas Department of Finance and Administration website. You’ll present this form to your suppliers when making tax-exempt purchases.
5. Submission: No submission is required in Arkansas. You don’t need to submit the resale certificate to the state. Instead, give the completed form directly to your suppliers when buying items for resale.
6. Pay Any Applicable Fees: There’s no cost to use Form ST-391, but you’ll need a valid Arkansas Sales Tax Permit, which costs $50 to register. To see if there’s a cost for the permit, check out our guide on Sales Tax Permit fees.
7. Understand Renewal Requirements: Your blanket exemption certificate remains valid if you have a recurring business relationship with the seller. This means you’re not required to renew or update the certificate as long as no more than 12 months pass between sales transactions.
To properly utilize your resale certificate in Arkansas when making tax-exempt purchases for resale, you’ll need to present a valid copy of your Arkansas Sales and Use Tax Resale Certificate to your supplier at the time of purchase.
Arkansas generally does accept resale certificates issued by other states. However, there might be specific conditions:
It’s always a good idea to confirm the vendor’s policy on accepting out-of-state certificates beforehand.
For more information regarding sales tax exemption laws in Arkansas, you may visit the state website.
A multi-jurisdictional resale certificate is a standardized form to simplify tax-exempt purchases for businesses that operate and make purchases for resale across state lines.
Unlike a standard resale certificate that a single state issues, a multi-jurisdictional certificate serves as valid proof across multiple states that the buyer intends to resell the goods and is therefore exempt from paying sales tax at the time of purchase.
However, it’s crucial to understand that not all states accept these multi-state forms, and acceptance can come with specific conditions.
There are two primary types of multi-jurisdictional resale certificates that a business operating in or selling to vendors in Arkansas might encounter:
Businesses need to verify whether Arkansas accepts these multi-jurisdictional certificates and if there are any specific requirements or limitations on their use within the state. This is to avoid any audit issues.
If you use an Arkansas resale certificate, you must ensure that you use it only for purchasing goods or services you intend to resell. Using it for personal or operational items (like office supplies or equipment) is illegal and may lead to penalties.
As a seller in Arkansas, accepting a resale certificate comes with the responsibility of verifying and retaining proper documentation for tax-exempt sales. You must:
Keep records for at least 6 years: A properly completed resale certificate serves as your official proof for not collecting sales tax. You must retain it in your records for at least six years in case of a sales tax audit by the Director of the Department of Finance and Administration.
Yes. Improper use of a resale certificate, such as using it for personal or non-resale purchases, can result in serious penalties. Always use Form ST-391 correctly and only for qualified resale purchases to avoid issues.
The Exemption Certificate (Form ST-391) expires if not used within a twelve-month timeframe.
If you’re a seller in Arkansas, here’s how to validate a buyer’s resale certificate:
Managing sales tax compliance and resale certificates in Arkansas doesn’t have to be complicated. TaxHero simplifies the process, from keeping your Arkansas Sales Tax Permit active to ensuring you use resale certificates correctly.
Save time. Avoid penalties. Stay compliant.
Schedule a Demo to see how TaxHero can streamline your Arkansas resale certificate process today!
If you run an Ecommerce or CPG business in Ohio, securing an Ohio Resale Certificate is a smart move. It helps protect your margins and streamline your operations.
This certificate allows you to purchase inventory and raw materials tax-free, helping you lower upfront costs, stay competitive in pricing, and remain compliant with Ohio sales tax laws.
In Ohio, a Sales and Use Tax Blanket Exemption Certificate is a document issued by the Ohio Department of Taxation that allows businesses to:
The purpose is to prevent double taxation once at the wholesale level and again at the point of retail sale.
However, an Ohio resale certificate is not a blanket exemption from all sales tax obligations. Businesses must still collect and remit sales tax on taxable sales to consumers.
Obtaining a resale certificate in Ohio offers several significant advantages for businesses that purchase goods for resale.
Here are some key benefits:
In Ohio, the specific form required for a resale certificate is the Ohio Sales and Use Tax Blanket Exemption Certificate (Form STEC B).
When filling out Form STEC B, a purchaser must include the vendor’s license number to identify that it is registered with the Ohio Department of Taxation and authorized to make tax-exempt purchases for resale.
An Ohio Sales Tax Permit authorizes your business to collect and remit sales tax on taxable sales to customers. An Ohio Resale Certificate (STEC B), on the other hand, allows you to purchase goods tax-free from suppliers if those goods are intended for resale. To use a resale certificate, you must have an active sales tax permit.
Businesses that purchase goods for resale can use an Ohio Resale Certificate. To do so, the business must actively sell taxable tangible products and hold a valid Ohio Sales Tax Permit.
Getting a resale certificate in Ohio is simple, but you’ll need to meet a few key requirements first. Here’s how to do it:
1. Make Sure You’re Eligible: Your business must sell taxable goods or services and be registered with the Ohio Department of Taxation. Only businesses with a valid Ohio Sales Tax Permit can use a resale certificate.
2. Get an Ohio Sales Tax Permit: If you don’t already have one, apply for an Ohio Sales Tax Permit through the Ohio Business Gateway website. This permit is required before you can issue or use a resale certificate.
Need help? Read our blog: How to Get a Seller’s Permit in Ohio
3. Gather Your Business Information: You’ll need basic business details to complete the resale certificate, including:
4. Complete Form STEC B: Download and fill out the Ohio Sales and Use Tax Blanket Exemption Certificate (Form STEC B) from the Ohio Department of Taxation website. In addition, you’ll present this form to your suppliers when making tax-exempt purchases.
5. Submission: No submission required in Ohio. You don’t submit the resale certificate to the state. Instead, give the completed form directly to your suppliers when buying items for resale.
6. Pay Any Applicable Fees: There’s no cost to use Form STEC B, but you’ll need a valid Ohio Sales Tax Permit, which costs $25 to register. To see if there’s a cost for the permit, check out our guide on Sales Tax Permit fees.
7. Understand Renewal Requirements: Your Ohio resale certificate remains valid only while your Sales Tax Permit is active. To maintain your ability to make tax-exempt purchases for resale, you must renew your Ohio Sales Tax Permit as the state requires.
To properly utilize your resale certificate in Ohio when making tax-exempt purchases for resale, you’ll need to present a valid copy of your Ohio Sales and Use Tax Resale Certificate to your supplier at the time of purchase.
Ohio generally does accept resale certificates issued by other states. However, there might be specific conditions:
If you are an out-of-state business purchasing from a vendor in Ohio and plan to use your home state’s resale certificate, provide it at the time of purchase, often by completing an Ohio exemption form (STEC B or STEC U) with your out-of-state registration information.
It’s always a good idea to confirm the vendor’s policy on accepting out-of-state certificates beforehand.
For more information regarding sales tax exemption laws in Ohio, you may visit the state website.
A multi-jurisdictional resale certificate is a standardized form to simplify tax-exempt purchases for businesses that operate and make purchases for resale across state lines.
Unlike a standard resale certificate issued by a single state, a multi-jurisdictional certificate aims to be recognized and accepted by multiple states as valid proof that the goods being purchased are intended for resale and are therefore exempt from sales tax at the time of purchase.
However, it’s crucial to understand that not all states accept these multi-state forms, and acceptance can come with specific conditions.
There are two primary types of multi-jurisdictional resale certificates that a business operating in or selling to vendors in Ohio might encounter:
Businesses need to verify whether Ohio accepts these multi-jurisdictional certificates and if there are any specific requirements or limitations on their use within the state. This is to avoid any audit issues.
When you use an Ohio resale certificate, you must ensure it applies only to purchases of goods or services you intend to resell. However, using it for personal or operational items (like office supplies or equipment) is illegal and may lead to penalties.
As a seller in Ohio, accepting a resale certificate comes with the responsibility of verifying and retaining proper documentation for tax-exempt sales. You must:
<strong>Keep records for at least 4 years: Use a properly completed resale certificate as your official proof for not collecting sales tax. You must retain it in your records for at least four years in case of a sales tax audit by the Ohio Tax Commissioner.
Yes. Improper use of a resale certificate, such as using it for personal or non-resale purchases, can result in serious penalties. Always use Form STEC B correctly and only for qualified resale purchases to avoid issues.
The resale certificate (Form STEC B) has no expiration date. However, it is only valid while your Ohio Sales Tax Permit remains active. If your permit is revoked or inactive, your resale certificate becomes invalid.
If you’re a seller in Ohio, here’s how to validate a buyer’s resale certificate:
Managing sales tax compliance and resale certificates in Ohio doesn’t have to be complicated. TaxHero simplifies the process, from keeping your Ohio Sales Tax Permit active to ensuring you use resale certificates correctly.
Save time. Avoid penalties. Stay compliant.
Schedule a Demo to see how TaxHero can streamline your Ohio resale certificate process today!
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.
In Idaho, a Sales Tax Resale or Exemption Certificate is a document issued by the Idaho State Tax Commission that allows businesses to:
The purpose is to prevent double taxation, once at the wholesale level and again at the point of retail sale.
However, an 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.
Obtaining a resale certificate in Idaho offers several significant advantages for businesses that purchase goods for resale.
Here are some key benefits:
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.
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.
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:
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:
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.
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:
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.
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:
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.
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 sellers must verify and keep proper documentation when accepting resale certificates for tax-exempt sales. You must:
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.
Yes. Improper use of a resale certificate, such as using it for personal or non-resale purchases, can result in serious penalties:
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.
If you’re a seller in Idaho, here’s how to validate a buyer’s resale certificate:
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!
If you run an Ecommerce or CPG business in Rhode Island, securing a Rhode Island 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 Rhode Island sales tax laws.
In Rhode Island, a Resale Certificate is a document issued by the Rhode Island Division of Taxation that allows businesses to:
The purpose is to prevent double taxation once at the wholesale level and again at the point of retail sale.
However, a Rhode Island 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.
Obtaining a resale certificate in Rhode Island offers several significant advantages for businesses that purchase goods for reselling.
Here are some key benefits:
In Rhode Island, businesses can use either the specific Rhode Island Resale Certificate (often titled “Wholesaler’s – Resale Certificate“) or the Streamlined Sales Tax Certificate of Exemption for multiple and recurring purchases.
When filling out the Resale Certificate, a purchaser must include their Rhode Island Sales and Use Tax Permit number to identify that they are registered with the Rhode Island Division of Taxation and authorized to make tax-exempt purchases for resale.
A Rhode Island Sales Tax Permit authorizes your business to collect and remit sales tax on taxable sales to customers. A Rhode Island Resale Certificate, on the other hand, allows you to purchase goods tax-free from suppliers if those goods are intended for resale. To use a resale certificate, you must have an active sales tax permit.
Businesses that purchase goods for resale can use a Rhode Island Resale Certificate. To do so, the business must actively sell taxable tangible products and hold a valid Rhode Island Sales Tax Permit.
Getting a resale certificate in Rhode Island 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 Rhode Island Division of Taxation. Only businesses with a valid Rhode Island Sales and Use Tax Permit can use a resale certificate.
2. Get a Rhode Island Sales Tax Permit: If you don’t already have one, apply for a Rhode Island Sales and Use Tax Permit through the Rhode Island Tax Portal website. You need this permit before you can use a resale certificate. Need help? Read our blog: How to Get a Seller’s Permit in Rhode Island
3. Gather Your Business Information: You’ll need basic business details to complete the resale certificate, including:
4. Complete the Resale Certificate: Download and fill out the Rhode Island Resale Certificate (often titled “Wholesaler’s – Resale Certificate”) or the Streamlined Sales Tax Certificate of Exemption from the Rhode Island Division of Taxation website. You’ll present this form to your suppliers when making tax-exempt purchases.
5. Submission: No submission required in Rhode Island. You don’t submit the resale certificate to the state. Instead, give the completed form directly to your suppliers when buying items for resale.
6. Pay Any Applicable Fees: There’s no cost to use the Resale Certificate, but you’ll need a valid Rhode Island Sales and Use Tax Permit, which costs $10.
7. Understand Renewal Requirements: While the form itself doesn’t specify an expiration date, it remains valid only as long as your sales tax permit is active and in good standing. Also, it will be valid as long as you use the certificate to purchase the same type of property.
Suppliers may, however, periodically request an updated form (e.g., every few years) to ensure their records are current.
The Rhode Island Sales and Use Tax Permit must be renewed annually, with a separate permit required for each business location. A new permit is also needed if you open a new location or if the business structure or ownership changes.
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 Resale Certificate.
To properly utilize your resale certificate in Rhode Island when making tax-exempt purchases for resale, you’ll need to present a valid copy of your form to your supplier at the time of purchase.
Rhode Island generally accepts out-of-state resale exemptions via the Streamlined Sales Tax Certificate of Exemption (SSTGB Form F0003).
However, there might be specific conditions:
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 forms that a business operating in or selling to vendors in Rhode Island might encounter
Businesses need to verify whether Rhode Island 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.
Use a Rhode Island resale certificate only for goods or services you genuinely intend to resell. Using it for personal or business items is illegal and may result in tax, interest, and penalties.
As a Rhode Island seller, you must verify and retain proper documentation when accepting resale certificates for tax-exempt sales. You must:
Keep records for at least 3 years: A properly completed resale certificate serves as your official proof for not collecting sales tax. You must keep it for at least three years and three months in case of a Rhode Island sales tax audit.
Yes. Improper use of a resale certificate, such as using it for personal or non-resale purchases, can result in serious penalties.
If a resale transaction is later deemed taxable, the buyer is responsible for the tax and penalties. Also, a buyer who submits a false resale certificate to a seller is liable for any resulting taxes and penalties.
Always use the Resale Certificate correctly and only for qualified resale purchases to avoid issues.
The form does not expire unless the information on the certificate changes. It is valid only while the buyer continues to resell the items listed on the certificate.
The certificate doesn’t expire like a permit, but sellers may request updates to keep records current and accurate.
If you’re a seller in Rhode Island, online verification is not available. Here’s how to validate a buyer’s resale certificate:
1. Request a completed resale certificate and check that all details are present and the purchase appears intended for resale.
2. Use the form to verify by calling the Rhode Island Division of Taxation website.
Managing sales tax compliance and resale certificates in Rhode Island doesn’t have to be complicated. TaxHero simplifies the process, from keeping your Rhode Island 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 Rhode Island resale certificate process today!
If you run an Ecommerce or CPG business in Utah, securing a Utah 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 Utah sales tax laws.
In Utah, a Resale Certificate, specifically documented through forms like the Utah Sales Tax Exemption Certificate (Form TC-721), is a document issued by the Utah State Tax Commission that allows businesses to:
The purpose is to prevent double taxation once at the wholesale level and again at the point of retail sale.
However, a Utah 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.
Obtaining a resale certificate in Utah offers several significant advantages for businesses that purchase goods for resale.
Here are some key benefits:
In Utah, the specific form required for a resale certificate for multiple and recurring purchases is the Utah Exemption Certificate (Form TC-721). While TC-721 is used for resale exemptions, there are other types of sales tax exemption certificates in Utah used for different purposes, such as:
When filling out Form TC-721, a purchaser must include their Utah Sales Tax License Number to identify that they are registered with the Utah Division of Taxation and authorized to make tax-exempt purchases for resale.
A Utah Sales Tax Permit authorizes your business to collect and remit sales tax on taxable sales to customers. A Utah Resale Certificate, on the other hand, allows you to purchase goods tax-free from suppliers if those goods are intended for resale.
To use a resale certificate, you must have an active sales tax permit.
Businesses that purchase goods for resale can use a Utah Exemption Certificate. To do so, the business must actively sell taxable tangible products and hold a valid Utah Sales and Use Tax License.
Getting a resale certificate in Utah 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 Utah State Tax Commission. Only businesses with a valid Utah Sales and Use Tax License can use a resale certificate.
2. Get a Utah Sales Tax Permit: If you don’t already have one, apply for a Utah Sales and Use Tax License through the Utah Taxpayer Access Point (TAP) website. You need this permit before you can use a resale certificate. Need help? Read our blog: How to Get a Seller’s Permit in Utah
3. Gather Your Business Information: You’ll need basic business details to complete the resale certificate, including:
4. Complete the Form TC-721: Download and fill out the Utah Exemption Certificate from the Utah State Tax Commission website. You’ll present this form to your suppliers when making tax-exempt purchases.
5. Submission: No submission required in Utah. 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 Utah Exemption Certificate (Form TC-721), but you’ll need a valid Utah Sales and Use Tax License.
7. Understand Renewal Requirements: While the Utah Exemption Certificate (Form TC-721) itself doesn’t specify an expiration date, it remains valid only as long as your sales tax permit is active and in good standing. Also, it will be valid as long as a recurring business relationship between you and the seller exists.
Suppliers may, however, periodically request an updated form (e.g., every few years) to ensure their records are current.
Your Utah Sales and Use Tax License remains valid for as long as the business exists, provided it continues to meet all state tax obligations and there are no significant changes to its ownership, legal structure, or operational activities that would require re-registration.
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 TC-721.
To properly utilize your resale certificate in Utah when making tax-exempt purchases for resale, you’ll need to present a valid copy of your Utah Resale Certificate to your supplier at the time of purchase.
Utah generally does accept resale certificates issued by other states. However, there might be specific conditions:
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 Utah might encounter:
Businesses need to verify whether Utah accepts these multi-jurisdictional certificates and if there are any specific requirements or limitations on their use within the state. This is to avoid any audit issues.
If you use a Utah 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.
As a Utah seller, you must verify and keep documentation for tax-exempt sales using a resale certificate. Also, you must:
Keep records for at least 3 years: A properly completed resale certificate is your official proof of why sales tax wasn’t collected. Keep the resale certificate for at least three years in case of a sales tax audit.
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 doesn’t have to collect sales tax if they obtain a properly completed Form TC-721.
However, tax authorities may still hold sellers liable if they knowingly accept false information or try to evade tax. Also, a buyer who submits a false resale certificate to a seller is liable for any resulting taxes and penalties.
Always use Form TC‑721 correctly and only for qualified resale purchases to avoid issues.
The Utah Exemption Certificate (Form TC‑721) remains valid as long as a recurring business relationship is maintained. It means that it does not expire if no more than twelve months elapse 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 Resale.
If you’re a seller in Utah, online verification is not available. Utah allows sellers to accept resale certificates in good faith.
To validate a resale certificate, request a completed Form TC-721 and ensure it’s filled out correctly and in good faith.
Managing sales tax compliance and resale certificates in Utah doesn’t have to be complicated. TaxHero simplifies the process, from keeping your Utah Sales and Use 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 Utah resale certificate process today!
If you run an Ecommerce or CPG business in Iowa, securing an Iowa Resale Certificate is a smart move to protect your margins and streamline operations.
This certificate allows you to purchase inventory and 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 Iowa sales tax laws.
In Iowa, a Sales/Use/Excise Tax Exemption Certificate is a document issued by the Iowa Department of Revenue that allows businesses to:
The purpose is to prevent double taxation, once at the wholesale level and again at the point of retail sale.
However, an Iowa resale certificate is not a blanket exemption from all sales tax obligations. Businesses are still required to collect and remit sales tax on taxable sales to end consumers.
Obtaining a resale certificate in Iowa offers several significant advantages for businesses that purchase goods for resale.
Here are some key benefits:
In Iowa, the specific form required for a resale certificate is the Iowa Sales/Use/Excise Tax Exemption Certificate (Form 31-014).
When filling out Form 31-014, the purchaser must enter their sales/use/excise tax permit number to show registration with the Iowa Department of Revenue and authorization to make tax-exempt resale purchases.
An Iowa Sales Tax Permit authorizes your business to collect and remit sales tax on taxable sales to customers. You can use an Iowa Resale Certificate (Form 31-014) to buy goods tax-free from suppliers if you intend to resell them. To use a resale certificate, you must have an active sales tax permit.
Businesses that purchase goods for resale can use an Iowa Resale Certificate. To do so, the business must actively sell taxable tangible products and hold a valid Iowa Sales Tax Permit.
Getting a resale certificate in Iowa 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 Iowa Department of Revenue. Only businesses with a valid Iowa Sales Tax Permit can use a resale certificate.
2. Get an Iowa Sales Tax Permit: If you don’t already have one, apply for an Iowa Sales Tax Permit through the GovConnectIowa 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 Iowa
3. Gather Your Business Information: You’ll need basic business details to complete the resale certificate, including:
4. Complete the Form 31-014: Download and fill out the Iowa Sales/Use/Excise Tax Exemption Certificate (Form 31-014) from the Iowa Department of Revenue website. You’ll present this form to your suppliers when making tax-exempt purchases.
5. Submission: No submission required in Iowa. 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 31-014, but you’ll need a valid Iowa 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: While the Iowa resale certificate (Form 31-014) itself doesn’t specify an expiration date, it remains valid only as long as your sales tax permit is active and in good standing.
Suppliers may, however, periodically request an updated form (e.g., every few years) to ensure their records are current. The Iowa Sales and Use Tax Permit remains valid for as long as the business exists without any changes in ownership or structure.
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 31-014.
To properly utilize your resale certificate in Iowa when making tax-exempt purchases for resale, you’ll need to present a valid copy of your Iowa Sales and Use Tax Resale Certificate to your supplier at the time of purchase.
Iowa generally does accept resale certificates issued by other states. However, there might be specific conditions:
If you are an out-of-state business purchasing from a vendor in Iowa, you can use the Uniform Sales and Use Tax Certificate – Multijurisdiction Form.
It’s always a good idea to confirm the vendor’s policy on accepting out-of-state certificates beforehand.
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 Iowa might encounter:
Businesses need to verify whether Iowa accepts these multi-jurisdictional certificates and if there are any specific requirements or limitations on their use within the state. This is to avoid any audit issues.
If you’re using an Iowa resale certificate, ensure it’s only for goods or services you genuinely intend to resell. Using it for personal or operational items (like office supplies or equipment) is illegal and may lead to penalties.
As a seller in Iowa, accepting a resale certificate comes with the responsibility of verifying and retaining proper documentation for tax-exempt sales. You must:
Keep records for at least 3 years: A properly completed resale certificate is your official proof of why sales tax wasn’t collected. Keep the resale certificate for at least three years in case of a sales tax audit by Iowa authorities.
Yes. Improper use of a resale certificate, such as using it for personal or non-resale purchases, can result in serious penalties:
Fraudulent intent includes sellers who fail to collect tax or encourage buyers to make unlawful exemption claims. The seller may be held responsible for any sales tax due from such transactions.
Always use Form 31-014 correctly and only for qualified resale purchases to avoid issues.
The resale certificate (Form 31-014) is valid for up to three years from the original issue. Additionally, this certificate must be executed or be in effect within thirty (30) days of the time of sale.
Blanket certificates stay valid until canceled or 12 months pass without purchases between the same buyer and seller.
However, it is only valid while your Iowa Sales Tax Permit remains active. If your permit is revoked or inactive, your resale certificate becomes invalid.
If you’re a seller in Iowa, online verification is not available. Here’s how to validate a buyer’s resale certificate:
Managing sales tax compliance and resale certificates in Iowa doesn’t have to be complicated. TaxHero simplifies the process, from keeping your Iowa 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 Iowa resale certificate process today!
If you run an Ecommerce or CPG business in Louisiana, securing a Louisiana Resale Certificate is a smart move to protect your margins and streamline operations.
This certificate allows you to purchase inventory and raw materials free from sales tax, helping you lower upfront costs, stay competitive in pricing, and remain compliant with Louisiana sales tax laws.
In Louisiana, a Louisiana Resale Certificate is a document issued by the Louisiana Department of Revenue that allows businesses to:
The purpose is to prevent double taxation, once at the wholesale level and again at the point of retail sale.
However, a Louisiana resale certificate is not a blanket exemption from all sales tax obligations. Businesses are still required to collect and remit sales tax on taxable sales to end consumers.
Obtaining a resale certificate in Louisiana offers several significant advantages for businesses that purchase goods for resale.
Here are some key benefits:
In Louisiana, the specific form required for a resale certificate is the Louisiana Resale Certificate (Form R-1064).
When filling out Form R-1064, a purchaser must include their Louisiana Sales Tax Account Number to identify that it is registered with the Louisiana Department of Revenue (LDR) and authorized to make tax-exempt purchases for resale.
A Louisiana Sales Tax Permit authorizes your business to collect and remit sales tax on taxable sales to customers. A Louisiana Resale Certificate (Form R-1064), on the other hand, allows you to purchase goods tax-free from suppliers if those goods are intended for resale. To use a resale certificate, you must have an active sales tax permit.
Businesses that purchase goods for resale can use a Louisiana Resale Certificate. To do so, the business must actively buy and sell tangible personal property and hold a valid Louisiana Sales Tax Permit.
Getting a resale certificate in Louisiana 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 Louisiana Department of Revenue by holding a valid Louisiana Sales Tax Permit.
2. Get a Louisiana Sales Tax Permit: If you don’t already have one, apply for a Louisiana Sales Tax Permit through the Louisiana Taxpayer Access Point (LaTAP) 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 Louisiana
3. Gather Your Business Information: You’ll need basic business details to complete the resale certificate, including:
4. Complete the Form R-1064: Download and fill out the Louisiana Resale Certificate (Form R-1064) from the Louisiana Department of Revenue website. You’ll present this form to your suppliers when making tax-exempt purchases.
5. Submission: Unlike some states that issue a separate physical resale certificate document, in Louisiana, you generally complete Form R-1064 and present a copy of it to your suppliers when making tax-exempt purchases for resale. Your eligibility to use this form is tied to your active Louisiana Sales Tax Permit and your compliance with the Louisiana Department of Revenue.
6. Pay Any Applicable Fees: There’s no cost to use the resale certificate itself (Form R-1064).
7. Manage Your Sales Tax Account and Verify Eligibility (via LaTAP): Although the Louisiana Department of Revenue doesn’t provide a personalized copy of Form R-1064 through LaTAP, keeping your sales tax account active and compliant is key to using it.
Through LaTAP, you can:
8. Understand Renewal Requirements: The Louisiana Department of Revenue automatically renews resale certificates 60 days before the expiration date, as long as businesses report and pay their sales activity and taxes on time under LA R.S. 47:1678. If a certificate doesn’t qualify for automatic renewal, the business must renew Form R-1064 within 45 days of the expiration date.
Businesses must complete the renewal online through the Louisiana Taxpayer Access Point (LaTAP). The department won’t process requests submitted before the 45-day renewal period. Resale dealers who haven’t registered for LaTap must do so to renew their certificate.
To properly utilize your resale certificate in Louisiana when making tax-exempt purchases for resale, you’ll need to present a valid copy of your Louisiana Resale Certificate to your supplier at the time of purchase.
Louisiana typically does not accept out-of-state resale certificates for purchases made within Louisiana. If your business is located outside Louisiana but makes tax-exempt purchases for resale in the state, you’ll generally need to register for a Louisiana Sales Tax Permit. Once registered, you must use the Louisiana Resale Certificate (Form R-1064) to make tax-exempt purchases. Your active sales tax permit serves as proof of your eligibility for the exemption.
For more information regarding sales tax exemption laws in Louisiana, you may visit the state website.
A multi-jurisdictional resale certificate is a standardized form to simplify tax-exempt purchases for businesses that operate and make purchases for resale across state lines.
Unlike a standard resale certificate issued by a single state, a multi-jurisdictional certificate aims to be recognized and accepted by multiple states as valid proof that the goods being purchased are intended for resale and are therefore exempt from sales tax at the time of purchase.
However, it’s crucial to understand that not all states accept these multi-state forms, and acceptance can come with specific conditions.
There are two primary types of multi-jurisdictional resale certificates that a business operating in or selling to vendors in Louisiana might encounter:
If you’re using a Louisiana 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.
Sellers in Louisiana must verify and keep documentation for tax-exempt sales when accepting resale certificates. You must:
Keep records for at least 4 years: A properly completed resale certificate is your official proof of why sales tax wasn’t collected. You must retain it in your records for at least four years.
Yes. Improper use of a resale certificate, such as using it for personal or non-resale purchases, can result in serious penalties. Buyers fraudulently using resale certificates may owe all taxes, penalties, and interest on the taxable purchases. Misusing resale certificates can lead to enforcement and collection actions against either the purchaser or the seller.
Yes, a Louisiana Resale Certificate (Form R-1064) is generally valid for three years from its effective date. The Louisiana Department of Revenue (LDR) may automatically renew the certificate if your business consistently meets the following requirements:
If your business does not qualify for automatic renewal, you’ll need to manually review the certificate online through the Louisiana Taxpayer Access Point (LaTAP). Keep in mind:
If you’re a seller in Louisiana, here’s how to validate a buyer’s resale certificate:
Confirm Validity: After submitting this information, the system will display a message indicating whether the provided account number holds a valid resale exemption. If the certificate is valid, the system will also show its expiration date. Conversely, the system will show a clear message if the account number is not valid for a resale exemption.
Managing sales tax compliance and resale certificates in Louisiana doesn’t have to be complicated. TaxHero simplifies the process, from keeping your Louisiana 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 Louisiana resale certificate process today!
If you run an Ecommerce or CPG business in South Carolina, securing an South Carolina resale certificate, in this case, your Sales Tax Permit, 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 your upfront costs, helping you stay competitive on pricing, and ensuring compliance with South Carolina sales tax laws.
In South Carolina, a resale certificate (Form ST‑8A) is a document issued by the South Carolina Department of Revenue (SCDOR). It allows businesses to:
The purpose of this certificate is to prevent double taxation, once at the wholesale level and again at the retail sale.
However, a South Carolina resale certificate is not a blanket exemption. Businesses still must collect and remit sales tax on taxable sales to their end customers.
Obtaining a resale certificate in South Carolina offers several significant advantages for businesses that purchase goods for resale.
Here are some key benefits:
In South Carolina, the form required for resale purchases is Form ST‑8A (Resale Certificate).
When completing this form, purchasers must include their South Carolina Retail License Number or a valid resale certificate number from another state to verify that they are registered with the South Carolina Department of Revenue (or their home state’s taxing authority) and authorized to make tax‑exempt purchases for resale.
A South Carolina Sales Tax Permit (also known as a retail license) authorizes your business to collect and remit sales tax on taxable sales.
A South Carolina Resale Certificate (Form ST‑8A) allows you to purchase goods tax‑free from suppliers when those goods are intended for resale. To use a resale certificate, you must have an active sales tax permit.
Only businesses actively engaged in selling taxable tangible products can use a South Carolina Resale Certificate.
To qualify, you must hold a valid South Carolina Sales Tax Permit (Retail License) issued by the South Carolina Department of Revenue, or a valid resale certificate number from another state if you are an out-of-state purchaser buying for resale into your state.
Getting a resale certificate in South Carolina is simple, but you’ll need to meet a few key requirements first. Here’s how to do it:
Your business must sell taxable goods or services and be registered with the South Carolina Department of Revenue (SCDOR) if you are an in-state business. Out-of-state businesses may use a valid resale certificate from their home state.
If you don’t already have one and are an in-state business, apply for a South Carolina Sales Tax Permit through the SCDOR website. This permit is required before you can issue or use a resale certificate as a South Carolina business.
Need help? Read our blog: How to Get a Seller’s Permit in South Carolina
You’ll need basic business details to complete the resale certificate, including:
Download and fill out Form ST‑8A (Resale Certificate) from the SCDOR forms page. You’ll present this form to your suppliers when making tax‑exempt purchases.
You don’t submit resale certificates to the state. Instead, present the completed certificate directly to your suppliers. Vendors must receive the document within 90 days of the sale for it to be considered valid and to relieve them of tax liability.
There’s no cost to use Form ST-8A, but you’ll need a valid South Carolina Sales Tax Permit. The permit costs $50 per physical location from which retail sales are made, and each location requires a separate retail license.
This license remains valid as long as the business continues operating at the same location.
Your resale certificate remains valid only while your South Carolina Sales Tax Permit is active. South Carolina Sales Tax Permits do not typically require renewal unless there is a change in ownership, location, or the SCDOR revokes it.
To properly utilize your resale certificate in South Carolina when making tax-exempt purchases for resale, you’ll need to present a valid copy of your South Carolina Sales and Use Tax Resale Certificate to your supplier at the time of purchase.
South Carolina generally does accept resale certificates issued by other states. However, there might be specific conditions:
If you are an out-of-state business purchasing from a vendor in South Carolina and plan to use your home state’s resale certificate, be prepared to provide it at the time of purchase. It’s always a good idea to confirm the vendor’s policy on accepting out-of-state certificates beforehand.
For detailed guidance on South Carolina’s resale certificate rules, visit the South Carolina Department of Revenue website.
A multi-jurisdictional resale certificate is a standardized form designed to simplify tax-exempt purchases for businesses that operate and make purchases for resale across state lines.
Unlike a standard resale certificate issued by a single state, a multi-jurisdictional certificate aims to be recognized and accepted by multiple states as valid proof that the goods being purchased are intended for resale and are therefore exempt from sales tax at the time of purchase.
However, it’s crucial to understand that not all states accept these multi-state forms, and acceptance can come with specific conditions.
Businesses need to verify whether South Carolina accepts these multi-jurisdictional certificates and if there are any specific requirements or limitations on their use within the state. This is to avoid any audit issues.
If you use a South Carolina resale certificate, you must ensure it’s applied only to purchases intended for resale. Using it for personal items or operational expenses, such as office supplies or equipment, is illegal and can result in fines of double the tax amount plus up to $500 under 68 O.S. §1356.2.
Businesses need to verify whether South Carolina (or their specific vendor in South Carolina) 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.
Yes. Misusing a resale certificate, such as using it for personal or non‑resale purchases, can result in serious penalties.
Under South Carolina law, a purchaser who fraudulently uses a resale certificate may be liable for the unpaid tax plus a penalty of 5% of the tax for each month the tax remains unpaid, up to a maximum of 50%. Additional penalties or legal actions may also apply.
No. A South Carolina resale certificate (Form ST‑8A) does not have a fixed expiration date. However, it is only valid as long as your South Carolina Sales Tax Permit remains active. If your permit is revoked or becomes inactive, your resale certificate is no longer valid.
To confirm a buyer’s resale certificate:
You don’t have to complicate managing sales tax compliance and resale certificates in South Carolina. TaxHero simplifies the process, from keeping your South Carolina 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 South Carolina process today!
If you run an Ecommerce or CPG business in Vermont, securing a Vermont Resale Certificate is one of the smartest ways to protect your margins and streamline operations.
This certificate lets you purchase inventory and raw materials without paying sales tax, reducing your upfront costs. By lowering your expenses, you can stay competitive with your pricing while remaining fully compliant with Vermont sales tax laws.
In Vermont, a resale certificate, formally known as the Vermont Sales Tax Exemption Certificate (Form S‑3), is used by businesses to certify to their sellers that purchases are for resale. It allows businesses to:
This process prevents double taxation, first at the wholesale level and then again when the product is sold at retail.
However, a Vermont resale certificate does not exempt you from collecting sales tax. Businesses must still collect and remit sales tax on taxable sales to end customers.
A Vermont resale certificate offers several important benefits:
In Vermont, you must use Form S‑3 (Vermont Sales Tax Exemption Certificate). When completing this form, you’ll include your Vermont Sales & Use Tax Account Number to show you are registered with the Vermont Department of Taxes and authorized to make tax‑exempt purchases for resale.
A Vermont Sales Tax Permit lets your business collect and remit sales tax on taxable sales. A Vermont Resale Certificate (Form S‑3) allows you to purchase goods tax‑free when those goods are intended for resale.
To use a resale certificate, you must first obtain an active sales tax permit.
Businesses that purchase goods for resale can use a Vermont Resale Certificate. To do so, the business must actively sell taxable tangible products and hold a valid Vermont Sales Tax Permit.
Getting a resale certificate in Vermont is straightforward, but you must meet a few key requirements first. Here’s how to do it:
Your business must sell taxable goods or services and be registered with the Vermont Department of Taxes. Only businesses with a valid Vermont Sales Tax Permit can use a resale certificate.
If you don’t already have one, apply for a Sales Tax Permit through the Vermont Department of Taxes’ myVTax portal. 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 Vermont
You’ll need basic business details to complete the resale certificate, including:
Download and fill out the Vermont Sales Tax Exemption Certificate (Form S‑3) from the Department of Taxes’ website. Check whether your certificate is for a single purchase or multiple purchases (blanket certificate). You’ll provide this completed form to your suppliers when making tax‑exempt purchases for resale.
You don’t submit Form S‑3 to the state. Instead, give the completed certificate directly to your suppliers when buying items for resale. Sellers must receive the form at or before the time of sale, but Vermont allows a 90‑day window after the sale to provide it if needed.
There’s no cost to use Form S‑3, but you must maintain an active Vermont Sales Tax Permit. Check the Vermont Department of Taxes for any permit fees.
Your resale certificate remains valid indefinitely as long as your Vermont Sales Tax Permit is active. To keep your certificate usable, renew your Sales Tax Permit when required and ensure your account remains in good standing.
To use a Vermont resale certificate for tax‑exempt purchases, present a valid, completed Vermont Sales Tax Exemption Certificate (Form S‑3) to your supplier at or before the time of purchase. This form serves as the seller’s proof for not charging sales tax.
Vermont places a strong emphasis on good‑faith acceptance. Sellers must ensure that the certificate:
If you’re an out‑of‑state business purchasing from a Vermont vendor, you may present your home state resale certificate, but the Vermont vendor is generally required to accept a Vermont Form S-3 or a Streamlined Sales Tax (SST) Certificate of Exemption if they are a member of SST. Always confirm the vendor’s policy before purchase.
For more information, visit the Vermont Department of Taxes Exemption Certificates page.
Multi‑jurisdictional resale certificates simplify purchasing for resale across state lines. These forms are recognized by many states as valid proof of resale intent, but acceptance in Vermont depends on proper completion and vendor discretion.
The two main types you may encounter in Vermont are:
Always verify with your Vermont vendor if they will accept a multi‑jurisdictional certificate. Using the wrong form or failing to provide proper details can create audit risks.
If you use a Vermont resale certificate, you must ensure it is applied only to purchases of goods or services intended for resale. Using the certificate for personal or operational items, such as office supplies or equipment, is illegal and can lead to penalties.
As a seller in Vermont, accepting a resale certificate comes with the responsibility of verifying and retaining proper documentation for tax-exempt sales. You must:
Yes. Misusing a resale certificate for personal or non‑resale purchases can result in tax assessments, added penalties, and possible legal action. Only use Form S‑3 for legitimate resale transactions.
No. Form S‑3 does not expire. It remains valid as long as your Vermont Sales and Use Tax Account is active. If your account becomes inactive or revoked, the certificate becomes invalid.
If you’re a seller in Vermont, here’s how to validate a buyer’s resale certificate:
You don’t have to complicate managing sales tax compliance and resale certificates in Vermont. TaxHero simplifies the process, from keeping your Vermont 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 Vermont process today!
If you run an Ecommerce or CPG business in Washington, securing a Washington 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 Washington sales tax laws.
In Washington, they call “Resale Certificates” a “Reseller Permit.” This document, issued by the Washington Department of Revenue (Washington DOR), allows businesses to:
The purpose is to prevent double taxation, first at the wholesale level and then again at the point of retail sale.
However, a Washington reseller permit is not a blanket exemption from all sales tax obligations. Businesses must still collect and remit sales tax on taxable sales to end consumers.
Both documents essentially serve and provide the same benefits or purpose for businesses that intend to purchase goods for resale. However, there are still a few clear distinctions between the two.
So what’s the difference between standard resale certificates in other states vs Washington’s reseller permit? In Washington, Reseller Permits have:
Despite the uniqueness of a Washington Reseller Permit, it’s not unduly different from most resale certificates regarding its functionality. Like standard resale certificates, a Washington Reseller Permit provides the same benefits as detailed below.
Obtaining a resale certificate in Washington offers several significant advantages for businesses that purchase goods for resale.
Here are some key benefits:
While most states typically require buyers to fill out a generic resale certificate form, often downloadable from their Department of Revenue, Washington does not. The Washington DOR refers to it solely as a “Reseller Permit” and should not confuse it with a “Sellers Permit.”
Following what’s stated above, a Washington Reseller Permit is not the same as a Sales Tax Permit. Since other states may refer to Sales Tax Permits as “Sellers Permits,” confusion is understandable.
To provide clarity, here’s a simplified explanation.
In Washington, a “Sales Tax Permit” is generally referred to as a “Business License.” By having a Business License, you become qualified to collect and remit sales tax on taxable sales to customers.
A Washington Reseller Permit allows you to purchase goods tax-free from suppliers when you intend to resell those goods. To become eligible for this permit, you’re typically required to have a Washington Business License.
Businesses without a Washington Business License cannot obtain a Resellers Permit unless they meet other specific qualifications. The following section discusses those qualifications.
Businesses purchasing goods for resale can use a Washington Reseller Permit only if they meet the state’s specific requirements. For instance, the business must actively sell taxable tangible products and hold a valid Washington Business License.
Aside from registered vendors, other qualified businesses can also obtain a Washington Reseller Permit. According to WAC 458-20-10201, those eligible businesses are:
Out-of-State Businesses: You cannot get or use a Washington Reseller Permit unless you have a Washington Business License. However, you’re only generally required to register your business in Washington if you have a sufficient nexus in the state.
Instead of using a Reseller Permit, unregistered businesses without a nexus are encouraged to utilize other resale certificates such as:
For more information regarding these other resale certificates, refer to the “Multi-Jurisdictional Resale Certificates” section of this blog.
Getting a resale certificate in Washington is straightforward, but you’ll need to meet a few key requirements first. As stated in WAC 458-20-10201, you must know that being a registered business in Washington doesn’t guarantee a Resellers Permit.
Regardless of the uncertainty, you can always attempt to obtain a Reseller Permit in Washington by following these steps:
1. Make Sure You’re Eligible: Your business must sell taxable goods or services and be registered with the Washington Department of Revenue. Typically, businesses with a valid Washington Business License may automatically receive a Reseller Permit.
However, under Washington’s Administrative Code 458-20-10201, the eligibility for applying for a reseller permit is strictly determined by the state.
According to the aforementioned code, you must keep in mind that:
If you’re already registered in Washington and have not received your Resellers Permit, you must apply first. By sending your Reseller Permit application, you’re prompting the Washington DOR to begin assessing your business’s eligibility.
2. Get a Washington Business License: If you don’t already have one, apply for a Washington Business License through the Washington Department of Revenue. You generally need this license before you can receive or use a Reseller Permit.
As stated by the Washington DOR, new businesses may receive a Reseller Permit automatically. To increase the likelihood of receiving a Reseller Permit, you must indicate that your business will engage in resale transactions.
However, if you’re not required to register in Washington, then you may opt to skip this step. Registering for a Business License is only mandatory for businesses with a sufficient nexus in the state.
Need help? Read our blog: How to Get a Seller’s Permit in Washington
3. Use your Washington Department of Revenue account: If you already have a Business License, then that means you also created an online account with the Washington state website.
Other qualified businesses with valid state endorsements or licensed contractors should also maintain an excise tax account. Having an excise tax account with the Washington DOR allows you to get or manage your Reseller Permit.
Refer to the instructions below for guidance.
4. Review your Reseller Permit: Once you can print your Reseller Permit, ensure that all information is accurate or up to date. Typically, you do not need to fill out a Washington Reseller Permit after printing.
The document itself should already contain all the required information for your business and its transaction purpose. For reference, you may check a Sample Reseller Permit from the Washington DOR.
You only have an optional field to fill out for adding important notes relevant to your transaction.
5. Submission: No submission required in Washington. You don’t submit the Reseller Permit to the state. Instead, give a printed copy of your Reseller Permit document to your suppliers when buying items for resale.
6. Pay Any Applicable Fees: There’s no cost to apply for a Washington Reseller Permit. However, you’ll typically need a valid Washington Business License. Depending on the license type, additional fees may apply.
7. Know the Validity Period of Reseller Permits: Generally, most Reseller Permits should be valid for 4 years. However, the following businesses only receive 2 years of validity for their permits:
To check your Reseller Permit’s validity, you have 3 options:
If you wish to apply or renew your Reseller Permit, refer to the instructions from Step #3.
Invalid Reseller Permit: Reseller Permits can become invalid if your Business License, Contractor’s License, or State Endorsements have been revoked or inactive. If the Washington DOR closes your excise tax account, you also make your Reseller Permit unusable.
8. Understand Renewal Requirements: After the standard 4 or 2-year validity period, in some cases, your permit may be renewed automatically. Check your Washington online account to verify whether you have renewed your permit.
However, if your permit won’t automatically renew, the Washington DOR will send you a renewal notice. This prompts you to reapply for a Reseller Permit within 90 days before your current one expires.
You might also need to renew or update your Reseller Permit if:
To properly utilize your resale certificate in Washington when making tax-exempt purchases for resale, you’ll need to present a valid copy of your Business License to your supplier at the time of purchase.
For out-of-state businesses purchasing from Washington suppliers, the rules for claiming a sales tax exemption for resale are specific
Washington generally does not accept generic resale certificates issued solely by other states. Instead, it accepts specific uniform exemption certificates from out-of-state buyers who do not need to register in Washington.
Accepted Certificates for Out-of-State Businesses: To claim a sales tax exemption in Washington if you are an out-of-state business without a Washington Reseller Permit, you must use one of the specific uniform exemption certificates approved by the Washington Department of Revenue.
The primary accepted certificates for out-of-state buyers in Washington are:
You must properly complete these certificates with all required information, including the buyer’s name, address, relevant identification number from their home state (if applicable), and the specific reason for exemption (e.g., for resale).
If you are an out-of-state business purchasing from a vendor in Washington and plan to claim a tax exemption for resale, you must provide one of the Washington-approved uniform exemption certificates (SST or MTC forms) at the time of purchase.
Keep in mind that Washington vendors have the right to refuse any exemption certificate if it is not one of the approved forms. If it is incomplete, or if they have reason to believe the purchase is not for legitimate resale.
This is because, without proper documentation, the seller could be held liable for uncollected sales tax during an audit, as outlined in Washington tax law, specifically RCW 82.04.470.
For a seamless transaction, it is highly recommended to inquire about your Washington supplier’s policies on accepting Streamlined Sales Tax (SST) or Multistate Tax Commission (MTC) forms beforehand.
This practice also helps prevent potential audit issues for both the buyer and the seller.
For more information regarding Reseller Permit laws in Washington, you may read the Washington Administrative Code 458-20-10201.
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.
As previously mentioned, Washington has approved two multi-jurisdictional resale certificates.
Businesses operating in or selling to vendors in Washington might encounter these forms, often provided by out-of-state purchasers:
While unregistered businesses in Washington can use these forms, you must still be aware of your nexus in the state. Once you establish a nexus, registering your business becomes mandatory.
That aside, if you plan to use these alternative resale certificates, you must verify your supplier’s policies beforehand. Despite allowing the use of these forms, not all Washington vendors will accept your multijurisdictional resale certificate.
For a seamless business transaction, always ask your Washington vendors about their preferences first.
Using a Washington Reseller Permit 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.
Taxable Amount Deduction: This option is for buyers whose Reseller Permit was declined (or unavailable at the time) and was charged sales tax. Report the transaction in your next tax return to receive a refund for the sales tax you paid on a qualifying resale purchase.
For more information, you may visit the Washington DOR’s official website.
Note: You may also see an option to request a sales tax refund. However, consumers mainly utilize this and not businesses.
As a seller in Washington, accepting a Reseller Permit comes with the responsibility of verifying and retaining proper documentation for tax-exempt sales. You must:
Keep records for at least 5 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 five years in case of a sales tax audit by the Washington DOR.
Yes. Misusing a Washington Reseller Permit even without fraudulent intent leads to the following penalties defined under the RCW 82.32.291:
Washington Reseller Permits are typically valid for 4 years. However, contractors or businesses with specific records with the Washington DOR are only eligible for a 2-year validity period. The Washington DOR may automatically renew your Reseller Permit. If not, the Washington DOR will send you a renewal notice. You must also note that your Reseller Permit becomes unusable if your Washington Business License becomes revoked or inactive.
If you’re a seller in Washington, there are 2 ways to validate a Reseller Permit:
For more instructions, visit the Washington DOR’s official webpage or send an email to resellerspermit@dor.wa.gov.
You don’t have to complicate managing sales tax compliance and resale certificates in Washington. TaxHero simplifies the process. From keeping your Washington Reseller 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 Washington process today!
If you run an Ecommerce or CPG business in New York, securing a New York 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 New York sales tax laws.
In New York, a Resale Certificate is a document specifically called Form ST-120, which is provided by the New York Department of Taxation and Finance. Businesses complete and present this form to their suppliers, allowing them to:
The purpose is to prevent double taxation, first at the wholesale level and then again at the point of retail sale.
However, a New York resale certificate is not a blanket exemption from all sales tax obligations. Businesses must still collect and remit sales tax on taxable sales to end consumers and must first obtain a New York Sales Tax Certificate of Authority to be eligible to use a resale certificate.
Obtaining a resale certificate in New York offers several significant advantages for businesses that purchase goods for resale.
Here are some key benefits:
In New York, the specific form required for a resale certificate is the Form ST-120.
When filling out the Form ST-120, you must include your New York Certificate of Authority number. This demonstrates that the NY Dept. of Taxation has registered you and authorized you to make tax-exempt purchases for resale.
Out-of-state purchasers not required to hold a New York Certificate of Authority can provide their home state’s sales tax registration number instead.
In New York, the state commonly refers to a Sales Tax Permit as a “Certificate of Authority.” A Certificate of Authority enables your business to collect and remit sales tax on taxable sales to customers.
Meanwhile, a New York Resale Certificate (Form ST-120) allows you to purchase goods tax-free from suppliers if you intend to resell those goods. To use a resale certificate, New York-based buyers are generally required to have an active Certificate of Authority.
Businesses that purchase goods for resale can use a New York Resale Certificate. To do so, New York-based businesses must actively sell taxable tangible products and hold a valid Certificate of Authority.
Aside from New York-based purchasers with a valid Certificate of Authority, other businesses can still use the Form ST-120. However, there are specific instructions they must follow depending on what their business is classified as.
In general, other qualified businesses that can use a resale certificate in New York are:
Getting a resale certificate in New York 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 New York Dept. of Taxation and Finance. Businesses with a valid Certificate of Authority can typically use resale certificates in New York with more convenience.
The following businesses are also eligible to get a resale certificate in New York, provided they meet the required qualifications:
2. Get a New York Certificate of Authority: If you don’t already have one, apply for a New York Certificate of Authority through the NY Business Express. You need this permit to complete the Form ST-120 if you have a nexus in New York.
Need help? Read our blog: How to Get a Seller’s Permit in New York
3. Gather Your Business Information: You’ll need basic business details to complete the resale certificate, including:
4. Complete the Form ST-120: Download and fill out the New York Resale Certificate (Form ST-120) from the NY Dept. of Taxation’s website. You’ll present this form to your suppliers when making tax-exempt purchases.
5. Submission: No submission required in New York. 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-120. However, you will need a valid Certificate of Authority once you have a nexus in New York. If you need one, know that registering for a New York Certificate of Authority is free.
7. Understand Renewal Requirements: The New York resale certificate itself has no specified expiration date. However, a New York blanket resale certificate’s validity may depend on 2 essential factors:
Updating your resale certificate based on these variable aspects is crucial to keep your New York suppliers up to date. By updating your records accordingly, you and your supplier can stay compliant with New York’s sales tax regulations and prevent audits.
To properly utilize your resale certificate in New York when making tax-exempt purchases for resale, you’ll need to present a valid copy of your New York Resale Certificate to your supplier at the time of purchase.
Using the Form ST-120 for New York-based buyers with a Certificate of Authority (COA) is a straightforward process. You only need to provide your COA number on the form and select the goods you intend to purchase for resale.
But aside from New York-based buyers, other businesses can also use the Form ST-120 in New York under specific conditions. Here’s how:
For out-of-state buyers planning to use their home state’s resale certificate in New York, here’s what you need to know.
New York generally prefers its state-issued resale certificate (Form ST-120). That’s because the Form ST-120 itself is already accommodating for out-of-state buyers.
Simply put, the Form ST-120 accepts out-of-state sales tax registration numbers. This ideally eliminates the need to use out-of-state resale certificates. Therefore, vendors may expect out-of-state purchasers to use New York’s specific resale certificate form instead.
Regardless, you can still attempt to provide your home state’s resale certificate to your New York suppliers. However, you must understand that New York vendors have the right to refuse your certificate depending on their discretion.
For New York vendors to potentially accept your out-of-state resale certificate, the following condition must be met:
Even if you meet the conditions above, bear in mind that NY vendors may still decline your out-of-state resale certificate. This is to avoid being subject to a greater burden of proof, as stated in the NY Publication 750.
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 New York, read the state’s Tax Bulletin Sales & Use Tax 240.
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 New York might encounter:
For a seamless transaction, inquire about your New York supplier’s policies on accepting various types of resale certificates beforehand. This practice also helps prevent potential audit issues.
Using a New York resale 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.
Refund Application: For buyers whose resale certificate was declined by a vendor, you can apply for a refund using the Form AU-11. Find more details about requesting sales tax refunds in New York via the TB-ST-350.
Both buyers and sellers must know that the improper use of the Form ST-120 results in serious penalties.
As a seller in New York, accepting a resale certificate comes with the responsibility of verifying and retaining proper documentation for tax-exempt sales. You must:
Keep records for at least 3 years: A properly completed resale certificate is your official proof of why sales tax wasn’t collected. You must retain it in your records for at least three years in case of a sales tax audit by the New York Dept. of Taxation.
Yes. Intentionally misusing the Form ST-120 results in serious penalties, such as:
Learn more about sales tax penalties in New York via the TB-ST-805.
The resale certificate (Form ST-120) has no specified expiration date. However, its validity mainly relies on your Certificate of Authority. An inactive sales tax registration number or Certificate of Authority generally invalidates the Form ST-120. You must also update blanket certificates accordingly to keep the resale certificate valid.
If you’re a seller in New York, here’s how to validate a buyer’s resale certificate:
You don’t have to complicate managing sales tax compliance and resale certificates in New York. TaxHero simplifies the process. From keeping your New York Certificate of Authority 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 York process today!
If you run an Ecommerce or CPG business in North Dakota, securing a North Dakota Resale Certificate is a smart move to protect your margins and streamline operations.
This certificate allows you to purchase inventory and 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 North Dakota sales tax laws.
In North Dakota, a Certificate of Resale is a document issued by the North Dakota Office of State Tax Commissioner that allows businesses to:
The purpose is to prevent double taxation once at the wholesale level and again at the point of retail sale.
However, a North Dakota 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.
Obtaining a resale certificate in North Dakota offers several significant advantages for businesses that purchase goods for resale.
Here are some key benefits:
In North Dakota, the specific form required for a resale certificate for multiple and recurring purchases is the Certificate of Resale (Form SFN 21950).
When filling out Form SFN 21950, a purchaser must include their Sales and Use Tax permit number to identify that it is registered with the North Dakota Department of Revenue and authorized to make tax-exempt purchases for resale.
A North Dakota Sales and Use Tax Permit authorizes your business to collect and remit sales tax on taxable sales to customers. A North Dakota Resale Certificate (Form SFN 21950), on the other hand, allows you to purchase goods tax-free from suppliers if those goods are intended for resale. To use a resale certificate, you must have an active sales tax permit.
Businesses that purchase goods for resale can use a North Dakota Resale Certificate. To do so, the business must actively sell taxable tangible products and hold a valid North Dakota Sales and Use Tax Permit.
Getting a resale certificate in North 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 be engaged in the business of selling, leasing, or renting tangible personal property and be registered with the North Dakota Office of State Tax Commissioner. Only businesses with a valid North Dakota Sales Tax Permit can use a resale certificate.
2. Get a North Dakota Sales Tax Permit: If you don’t already have one, apply for a North Dakota Sales and Use Tax Permit through the North Dakota TaxPayer Access Point (ND TAP) website. You need this permit before you can use a resale certificate. Need help? Read our blog: How to Get a Seller’s Permit in North Dakota
3. Gather Your Business Information: You’ll need basic business details to complete the resale certificate, including:
4. Complete the Form SFN 21950: Download and fill out the North Dakota Certificate of Resale (Form SFN 21950) from the North Dakota Office of State Tax Commissioner website. You’ll present this form to your suppliers when making tax-exempt purchases.
5. Submission: No submission required in North Dakota. 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 SFN 21950, but you’ll need a valid North Dakota Sales and Use Tax Permit.
7. Understand Renewal Requirements: While the North Dakota resale certificate (Form SFN 21950) itself doesn’t specify an expiration date, it remains valid only as long as your sales tax permit is active and in good standing.
Suppliers may, however, periodically request an updated form (e.g., every few years) to ensure their records are current. Your North Dakota Sales and Use Tax Permit stays valid unless you cancel it or the state revokes it.
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 SFN 21950.
To properly utilize your resale certificate in North Dakota when making tax-exempt purchases for resale, you’ll need to present a valid copy of your North Dakota Sales and Use Tax Resale Certificate to your supplier at the time of purchase.
North Dakota generally does accept certain out-of-state resale certificates. However, there might be specific conditions:
It’s always a good idea to confirm the vendor’s policy on accepting out-of-state certificates beforehand.
For more information regarding sales tax exemption laws in North Dakota, you may visit the state website.
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 North Dakota might encounter:
Businesses need to verify whether North Dakota accepts these multi-jurisdictional certificates and if there are any specific requirements or limitations on their use within the state. This is to avoid any audit issues.
If you use a North Dakota 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.
As a North Dakota seller, you must verify and keep documentation for tax-exempt sales using a resale certificate. Also, you must:
Keep records for at least 3 years: A properly completed resale certificate is your official proof of why sales tax wasn’t collected. Keep the resale certificate for at least three years and three months in case of a sales tax audit.
Yes. Improper use of a resale certificate, such as using it for personal or non-resale purchases, can result in serious penalties.
If a resale is misclassified and later deemed taxable, the buyer must pay the tax and any penalties. Also, a buyer who submits a false resale certificate to a seller is liable for any resulting taxes and penalties.
Always use Form SFN 21950 correctly and only for qualified resale purchases to avoid issues.
North Dakota Certificate of Resale (Form SFN 21950) does not expire unless the information on the certificate changes. Form SFN 21950 is valid only while the buyer continues to resell the items listed on the certificate.
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 Resale.
If you’re a seller in North Dakota, online verification is not available. Here’s how to validate a buyer’s resale certificate:
1. Ask the buyer for a completed Form SFN 21950 and review it for accuracy and good faith resale intent.
2. Go to the NJDOR On-Line Business Registration Certificate Service website.
3. Scroll down to the Lookups and Inquiries section and select Sales & Use Permit Inquiry.
4. Enter the required permit number and select Search.
Managing sales tax compliance and resale certificates in North Dakota doesn’t have to be complicated. TaxHero simplifies the process, from keeping your North Dakota Sales and Use 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 North Dakota resale certificate process today!
