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Why do you need a Seller’s Permit?

How much does a Seller’s Permit Cost in Each State?

Bottomline 

What is a Sales Tax for Sellers?

Do I need to Collect Sales Tax for Selling Online?

• There is a nexus or a connection between the seller and the state where the company operates (physical or economic) AND
• If the business’s goods or services are taxable under the state’s sales tax laws.

Origin-Based vs. Destination-Based Sales Tax

Origin-Based Sales Tax

• Arizona
• California
• Illinois
• Mississippi
• Missouri
• New Mexico
• Ohio
• Pennsylvania
• Tennessee
• Texas
• Utah
• Virginia

Destination-Based Sales Tax

How to Collect Sales Tax?

Understand your State Laws

Determine the Correct Sales Tax Amount

Register for a Sales Tax Permit

Collect Tax on All Sales Channels

Do I Need to Collect Sales Tax on Shipping and Handling Charges?

• Taxable Items Delivery: The shipping charges are usually taxable when linked to the delivery of taxable goods.
• Separately Stated & Optional Charges: If shipping and handling fees are optional and listed individually on the invoice, they are typically exempt from sales tax, even if the shipped item is taxable.
• Non-Taxable Items Delivery: Shipping charges associated with non-taxable items are generally not subject to sales tax.

Remitting Sales Taxes

• Know Your State’s Rules: Each state has rules for reporting sales tax. Some want just a summary, while others need a more detailed report.
• Collect Sales Tax: Set up your e-commerce platform to automatically calculate and collect the correct sales tax from your customers based on their location. Make sure your tax settings are up-to-date and accurate.
• Keep Detailed Reports: Make a clear and complete report of the sales tax you’ve collected, following your state’s guidelines.
• Submit Your Sales Tax Returns: Adhering to the specific filing and sales tax remittance deadlines set by your state, which may be monthly, quarterly, or annually, is paramount in sales tax compliance. Alongside submitting your returns, ensure the timely payment of collected taxes.

The Takeaway!

Understanding Resale Certificates in Alabama

What is an Alabama Resale Certificate?

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

Why do you need a Resale Certificate in Alabama?

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

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

Who Can Use a Resale Certificate in Alabama?

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

1. Make Sure You’re Eligible

2. Gather Your Business Information

• Your business legal name and any trade names.
• Your business address and contact information.
• Your Federal Employer Identification Number (FEIN)
• Your number of businesses in Alabama and the exact location of each (exact location shall include city, county, and street address; if the location is on the highway or rural route, exact location shall include details sufficient to allow Department personnel to find the place of business)
• Indication of the kind and class of business (i.e., wholesaler, manufacturer, etc.)
• Type of products manufactured or sold
• The reason the exemption is claimed
• Your business type (e.g., sole proprietorship, LLC, corporation) and the attached ownership information.

3. Submit Your Application

4. Receive Your Certificate Form STE-1

• Certificate holder’s exemption number
• Restrictions, if any, on the scope of your exempt status
• Nature of your business
• Statement of the duties and responsibilities of the vendor to whom you provide the certificate.
• Your sworn statement, made under penalty of false swearing, confirming the validity of your exemption claim
• Your name and address as the certificate holder
• Date of approval or issuance by the Department, and
• Signature of approval by the Department

5. Pay Any Applicable Fees

6. Understand Renewal Requirements

How to Use a Resale Certificate in Alabama

• If you are dropshipping to a customer in Alabama, the state allows you (the vendor/drop-shipper) to accept the reseller’s home-state resale certificate.
• Alabama considers the transaction between the drop-shipper and the reseller separate from the resale to the end customer in Alabama.
• Remote resellers can provide their home-state resale certificate when buying from a drop-shipper who ships to an Alabama customer.
• If the sale to the Alabama customer is taxable and you (the remote reseller) have economic nexus in Alabama (e.g., over $250,000 in retail sales in the previous calendar year), you are required to register with the Alabama Department of Revenue and collect sales tax. 

Simplified Seller Use Tax (SSUT)

Multi-Jurisdictional Resale Certificates

• Uniform Sales & Use Tax Resale Certificate – Multijurisdiction Form: This is a widely recognized form accepted by a significant number of states (though not all). Alabama accepts this form, provided it is properly completed. For Alabama-based buyers, it should include their Alabama Sales Tax Permit number. You can find this form on the Multistate Tax Commission (MTC) website.
• Streamlined Sales Tax (SST) Certificate of Exemption: Alabama is not a member of the Streamlined Sales Tax Governing Board. It is categorized as an Advisory State, meaning they have not complied with the requirements to become a Streamlined Member State.

Responsibilities When Using or Accepting a Resale Certificate in Alabama

Buyer Responsibilities

• Alabama-based buyers: Provide a fully completed Form STE-1 to your suppliers for qualifying purchases.
• Out-of-state buyers:
  • Alabama does not issue sales tax licenses or resale certificates to businesses that operate remotely and have no physical presence in the state. However, they can still claim exemption through the following:
    • Home State Resale Certificate:  Out-of-state buyers can present their own state’s resale certificate or sales tax license. Alabama sellers are generally allowed to accept these if the purchase is clearly for resale and the seller accepts it in good faith.
    • Shipping the Items Outside Alabama: If the Alabama seller delivers the goods outside the state, or ships them via the U.S. Postal Service or a common carrier to a non-Alabama destination, the sale is typically treated as tax-exempt.
    • Special Exemptions: Limited exemptions exist for non-residents, such as certain vehicle purchases intended for immediate export. But for most resale transactions, exemption is claimed through a home-state certificate or out-of-state delivery.

Seller Responsibilities

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

Frequently Asked Questions About the Alabama Resale Certificate

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

Does an Alabama Resale Certificate Expire?

How Do I Verify an Alabama Resale Certificate?

1. Request a completed Form STE-1 from the buyer.
2. Visit the My Alabama Taxes homepage.
3. Scroll down and locate the Business section. Under this section, select Verify an exemption certificate.
4. Enter the required information and click Search.
5. Click the Account Status to view the status of your Exemption Certificate.

How TaxHero Can Help

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

Understanding Resale Certificates in New Jersey

What is a New Jersey Resale Certificate?

In New Jersey, a Resale Certificate is a document issued by the New Jersey Division of Taxation that allows businesses to:

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

New Jersey employs two primary forms to facilitate sales tax exemptions for resale purposes, distinguishing between in-state and out-of-state purchasers:

• Form ST-3 (Resale Certificate): This form is specifically designated for use by businesses that are registered within New Jersey when making purchases from in-state suppliers.
• Form ST-3NR (Resale Certificate for non-New Jersey Sellers): This form is for businesses not registered in New Jersey and not required to be registered in New Jersey, typically out-of-state sellers, when they purchase items for resale from suppliers located within New Jersey.

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

However, a New Jersey resale certificate is not a blanket exemption from all sales tax obligations. Businesses are still required to collect and remit sales tax on taxable sales to end consumers.

Why do you need a Resale Certificate in New Jersey?

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

Here are some key benefits:

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

In New Jersey, the specific form required for a resale certificate for multiple and recurring purchases is the Resale Certificate (Form ST-3).

When filling out Form ST-3, a purchaser must include their New Jersey Taxpayer Registration Number (also known as their Certificate of Authority number) to identify that it is registered with the New Jersey Department of Revenue and authorized to make tax-exempt purchases for resale.

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

A New Jersey Sales Tax Permit authorizes your business to collect and remit sales tax on taxable sales to customers. A New Jersey Resale Certificate (Form ST-3), on the other hand, allows you to purchase goods tax-free from suppliers if those goods are intended for resale. To use a resale certificate, you must have an active sales tax permit.

Who Can Use a Resale Certificate in New Jersey?

Businesses that purchase goods for resale can use a New Jersey Resale Certificate. To do so, the business must actively sell taxable tangible products and hold a valid New Jersey Certificate of Authority.

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

Getting a resale certificate in New Jersey 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 Jersey Division of Taxation if you are an in-state business.

2. Get a New Jersey Sales Tax Permit: If you don’t already have one, apply for a New Jersey Certificate of Authority through the New Jersey Online Business Registration website. This permit is required before you can issue or use a resale certificate.

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

• Your legal name and address
• Seller’s legal name and address
• Your New Jersey Taxpayer Identification number (for ST-3) or Federal Employer
• Identification Number/out-of-state registration number (for ST-3NR)
• Your type of business
• Your reason(s) for exemption
• Your authorized signature and date of issue

4. Complete the Form ST-3 or Form ST-3NR: Download and fill out the New Jersey Resale Certificate (Form ST-3 or Form ST-3NR, if applicable) from the New Jersey Division of Taxation website. You’ll present this form to your suppliers when making tax-exempt purchases.

5. Submission: No submission required in New Jersey. 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 itself (Form ST-3).

7. Understand Renewal Requirements: The New Jersey Resale Certificate is valid only while the buyer continues to purchase the same general type of property. While the certificate itself doesn’t “expire” in the same way a permit does, it’s a best practice to provide updated certificates to your suppliers.

Suppliers may, however, periodically request an updated form (e.g., every few years) to ensure their records are current. The New Jersey Certificate of Authority 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 ST-3. 

How to Use a Resale Certificate in New Jersey

To properly utilize your resale certificate in New Jersey when making tax-exempt purchases for resale, you’ll need to present a valid copy of your New Jersey Resale Certificate (Form ST-3 or ST-3NR, as applicable) to your supplier at the time of purchase.

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

• Good Faith Acceptance: Vendors in New Jersey will typically accept an out-of-state resale certificate in good faith, provided it contains all the necessary information (buyer’s name, address, seller’s permit number from the issuing state, reason for exemption, etc.).
• Reciprocity: The acceptance might be based on reciprocal agreements with the state that issued the certificate, and New Jersey also participates in the Streamlined Sales Tax Agreement (SSTA), which facilitates acceptance of a uniform certificate.

If you are an out-of-state business purchasing from a vendor in New Jersey, you can use the Uniform Sales and Use Tax Certificate – Multijurisdiction Form or New Jersey’s Form ST-3NR (Resale Certificate for Non-New Jersey Sellers).

It’s always a good idea to confirm the vendor’s policy on accepting out-of-state certificates beforehand.

Multi-Jurisdictional Resale Certificates

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

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

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

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

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

Businesses need to verify whether New Jersey accepts these multi-jurisdictional certificates and if there are any specific requirements or limitations on their use within the state. This is to avoid any audit issues.

Responsibilities When Using or Accepting a Resale Certificate in New Jersey

Buyer Responsibilities

If you’re using a New Jersey 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.

• New Jersey-based buyers: Provide a fully completed Form ST-3 to your suppliers for qualifying purchases.
• Out-of-state buyers: New Jersey has a Resale Certificate for non-New Jersey Sellers (Form ST-3NR).
  New Jersey vendors also accept either a valid resale certificate from your home state or the Uniform Sales and Use Tax Certificate – Multijurisdiction Form, under specific conditions that ensure documentation and compliance with New Jersey tax regulations. 

Seller Responsibilities

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

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

Keep records for at least 4 years: A properly completed resale certificate serves as official proof for why you didn’t collect sales tax. You must retain a physical copy for four years from the date of the last sale covered by the certificate in case of an inspection by the New Jersey Division of Taxation. 

Frequently Asked Questions About the New Jersey Resale Certificate

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

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

Sellers demonstrate fraudulent intent when they fraudulently fail to collect the tax or solicit purchasers to make unlawful exemption claims. The state may hold the seller responsible for any sales tax due from such transactions.

Always use Form ST-3 correctly and only for qualified resale purchases to avoid issues.

Does a New Jersey Resale Certificate Expire?

A New Jersey resale certificate stays valid if the buyer keeps making recurring purchases from the seller.

A blanket certificate covers multiple transactions and stays effective if the buyer purchases the same general type of property.

However, it is only valid while your New Jersey Sales Tax Permit remains active. Revoking or inactivating your permit invalidates your resale certificate.

How Do I Verify a New Jersey Resale Certificate?

If you’re a seller in New Jersey, you can’t verify ST-3 or ST-3NR forms online directly. Here’s how to validate a buyer’s resale certificate:

1. Ask the buyer for a completed ST-3 form and review it for all required information. Make sure the purchase is for resale and is consistent with good faith.

2. You can then verify the validity of the buyer’s Business Registration Certificate using the NJDOR On-Line Business Registration Certificate Service 

3. Enter the Name Control and one of the following: 

• Taxpayer Identification Number
• Business Entity Identification Number
• Business Registration Certificate.

4. Fill out all required fields. Once done, click Submit.

How TaxHero Can Help

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

Understanding Resale Certificates in Vermont

What is a Vermont Resale Certificate?

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:

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

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.

Why do you need a Vermont Resale Certificate?

A Vermont resale certificate offers several important benefits:

• Avoid Paying Sales Tax on Inventory: You won’t pay sales tax upfront on items you plan to resell, improving cash flow.
• Maintain Competitive Pricing: By saving on sales tax at purchase, you can price your products more competitively, especially helpful in cost‑sensitive industries.
• Stay Compliant: Using a properly completed resale certificate ensures you follow Vermont sales tax laws and avoid penalties for improper purchases.

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.

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

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.

Who Can Use a Resale Certificate in Vermont?

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.

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

Getting a resale certificate in Vermont is straightforward, but you must 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 Vermont Department of Taxes. Only businesses with a valid Vermont Sales Tax Permit can use a resale certificate.

2. Get an Vermont Sales Tax Permit

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

3. Gather Your Business Information

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

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

4. Complete the Proper Certificate

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.

5. Provide it to Your Suppliers

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.

6. Pay Any Applicable Fees

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.

7. Maintain and Renew

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.

How to Use a Resale Certificate in Vermont

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:

• Has no false or misleading statements.
• Uses the official Vermont Department of Taxes form or one with substantially identical language.
• Is fully completed, signed, and dated.
• Covers items that match the stated exempt purpose.

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

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:

• Uniform Sales & Use Tax Resale Certificate – Multijurisdiction Form: Accepted by many states, including Vermont, if properly completed.
  Vermont buyers must include their Vermont Sales & Use Tax Account Number. Out‑of‑state buyers should include their home state registration number.
• Streamlined Sales Tax (SST) Certificate of Exemption: Vermont is a full member of the Streamlined Sales Tax Governing Board, so it accepts this form from qualifying buyers, and vendors are generally required to accept it from qualifying buyers, especially those registered through the Streamlined system.

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.

Responsibilities When Using or Accepting a Vermont Resale Certificate

Buyer Responsibilities

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.

• For Vermont-based buyers: You must hold an active Vermont Sales & Use Tax Account Number and provide it on Form S‑3. Be prepared to explain the exempt purpose if the items you’re purchasing aren’t clearly for resale.
• For out‑of‑state buyers: You can use your home state resale certificate or a multi‑jurisdictional form like the MTC or SST certificate. However, acceptance is up to the Vermont vendor. Always confirm in advance and provide full details, including your home state sales tax number, to avoid rejection or disputes.

Seller Responsibilities

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:

• Accept the certificate in good faith: Confirm that the information provided is accurate and that the items match the claimed exempt purpose.
• Ensure the certificate is complete: It must include the buyer’s name, address, tax account number (Vermont or home state), reason for exemption, signature, and date.
• Reject invalid certificates: Do not accept certificates for purchases clearly meant for personal or business use unrelated to resale.
• Retain records for at least 3 years: Vermont requires sellers to keep completed resale certificates for a minimum of three years from the date of the last sale covered by the certificate (Form S‑3 instructions). These records protect you during audits by the Vermont Department of Taxes.

Frequently Asked Questions About the Vermont Resale Certificate

Are There Penalties for Misusing a Vermont Resale Certificate?

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.

Does an Vermont Resale Certificate Expire?

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.

How Do I Verify a Resale Certificate in Vermont?

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

• Request a completed Form S‑3 from the buyer.
• Confirm that it includes their Vermont Sales and Use Tax Account Number or their home state number if they are out of state.
• Call the Vermont Department of Taxes at 802-828-2505 to confirm the account is active.

How TaxHero Can Help

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!

What is Sales Tax Compliance, and Why Is It Important?

• Determining where you have sales tax nexus (where you’re obligated to collect tax)
• Calculating and charging the correct sales tax on each transaction
• Registering with the appropriate state tax authorities
• Filing monthly/quarterly/semi-annually tax returns
• Remitting payments to multiple jurisdictions
• Storing documentation in case of an audit

What are Sales Tax Compliance Services?

• Nexus analysis to determine where you owe tax
• State registrations
• Automated tax calculation
• Return preparation and filing
• Audit assistance
• Ongoing compliance support

Sales Tax Compliance services encompass a complete spectrum of support where businesses get to transfer the administrative load of managing sales tax compliance.

When to outsource sales tax?

• Hitting specific revenue benchmarks (e.g., $100,000 in sales in states with economic nexus laws) or
• By hiring remote workers across state lines, which can instantly create new nexus obligations for your business

If you want to learn more about this, you can read our guide to economic nexus.

Benefits of Outsourcing Sales Tax Compliance

Prevent Penalties

Reallocate Resources

Minimize Non-Compliance Risk

Specialized providers possess a deep expertise and knowledge of tax laws and regulations, making them the perfect people to monitor your sales tax compliance.

Other Additional Benefits

• Cost Efficiency: Outsourcing gives you access to specialized tax expertise at a more cost-effective price than maintaining an in-house team. As a result, you gain long-term savings and unlock a greater growth potential in the long run.
• Scalability: Outsourcing makes it easier for you to adapt to the increasing complexity of sales tax compliance as your business grows into new markets, increasing your transaction volumes.
• Audit Preparedness: Outsourcing your sales tax compliance ensures that your business is always prepared for sales tax audits, ensuring all your documentation and records are available and ready.

The risks and complexities of sales tax are real, but they don’t have to be your problem. By outsourcing to TaxHero, you gain peace of mind and strategic advantages. Discover how seamless sales tax compliance can be with TaxHero. Contact us today!

How to Outsource Sales Tax Compliance

Initial Assessment

Integration and Setup

Communication

Ongoing Management and Review

How TaxHero provides Sales Tax Compliance Outsourcing for Business Startups

TaxHero is purpose-built to solve the real-world challenges startups face, not just automate filings. Our approach goes beyond technical compliance to provide strategic, human-first support that grows with your business.

• Real Human Expertise: While many solutions rely solely on automation, TaxHero gives you access to a dedicated team of accountants and sales tax experts. Whether you need strategic advice or day-to-day help, we’re here to guide you through every nuance of sales tax compliance.
• Round-the-Clock Support: Your business doesn’t stop at 5 PM, nor do we. Our team is available around the clock to support founders operating in multiple time zones and under tight deadlines.
• Help with Past-Due Taxes: Already behind on filings? We’ve got you covered. TaxHero doesn’t just help you stay compliant going forward—we specialize in cleaning up past-due returns, resolving penalties, and bringing your business back into good standing.
• One Transparent Price: No hidden fees. No surprise invoices. Just one clear, all-inclusive pricing package tailored for fast-moving startups.
• Seamless Integration: TaxHero connects with the tools you already use—whether it’s Shopify, Stripe, QuickBooks, or others—making compliance frictionless from day one.
• Actionable, Real-Time Reporting: Gain instant visibility into your tax obligations with a real-time dashboard that keeps you informed, in control, and audit-ready.

Let TaxHero handle your Sales Tax Compliance

How do you future-proof your business?

The answer lies in your ability to secure your business’s growth trajectory. As your business grows in different states, so will your transaction volumes. As a result, sales tax compliance will only grow more complex.

But with a robust sales tax compliance team, you can:

• Secure significant time savings
• Reduce compliance risk and
• Gain peace of mind while expanding your business further

Don’t DIY Your Taxes. Delegate to TaxHero. Startup life is chaotic enough. Let us take this off your plate. TaxHero handles compliance while you build your business. Get started today with a free consultation.

FAQs

What is the main difference between in-house and sales tax compliance outsourcing for business startups?

What key factors should be considered in sales tax compliance outsourcing for business startups?

• All-In-One Sales Tax Management Solution
• Fully Managed Sales Tax Service
• Multistate coverage
• Transparent pricing
• Integration with your ecommerce/finance stack
• Use of innovative tools
• Live support, a dedicated team, and sales tax professionals
• Proven track record with startups

What common pitfalls should businesses avoid when outsourcing sales tax compliance?

Businesses should avoid choosing a provider solely based on the lowest cost or the most popular (they were simply there first!). Startups should also consider the outsourcing provider’s systems and processes, which include data migration, system testing, and transition.

What are sales tax compliance services?

Sales tax compliance services are third-party providers that manage your end-to-end sales tax responsibilities—from nexus tracking to return filing—so you stay compliant and avoid costly penalties.

Is TaxHero secure?

Absolutely. TaxHero uses industry-standard encryption and secure data practices to protect your business information at every step.

I am a startup, but I don’t have sufficient funds to outsource sales tax compliance. How much does TaxHero cost?

Every dollar counts for a startup. That’s why TaxHero offers a transparent, startup-friendly pricing tailored to fit your budget. Our all-inclusive service starts as low as $10/month, based on your order volume—no hidden fees, no onboarding costs, and no long-term contracts! Plus, we cap your maximum monthly expense to keep costs predictable. New clients receive a free nexus analysis, and we guarantee error-free service—if any penalties or interest arise due to our mistake, we cover them.

Understanding Resale Certificates in Alaska

Alaska’s Unique Tax Landscape: No Statewide Sales Tax, But Local Taxes Exist

What Does “Resale Certificate” Mean for Alaska Businesses?

Why Alaska Businesses Still Need to Understand Resale Exemptions?

• Avoiding Sales Tax on Out-of-State Purchases: Protect profit margins when buying inventory/materials from suppliers located in sales-tax states.
• Complying with Local Sales Taxes: Crucial for avoiding penalties and ensuring proper tax treatment in municipalities that do have a local sales tax and may require specific local certificates for resale.
• Maintaining Smooth Vendor Relationships: Ensure seamless transactions with suppliers (both in-state local and out-of-state).
• Legal Compliance: Prevent potential use tax liabilities from other states and avoid non-compliance issues with Alaskan municipalities.

 “Resale Certificate” vs. Business Registration: The Key Distinction

How to Handle Resale Exemptions as an Alaska Business

For Purchases from Out-of-State Vendors

What Documentation to Provide

• Alaska Business Registration: A copy from the Alaska Department of Commerce, Community, and Economic Development showing your active status.
• Federal Employer Identification Number (EIN): Serves as additional proof of your business identity.
• Business Identification Information: Your business name, address, phone number, and email.
• Business Structure & Ownership: Specify whether you operate as a sole proprietorship, partnership, corporation, or LLC, and include owner/partner/officer details.
• Industry Activity Details: A description of your products or services, sales volume, and the date of your first or expected sales.
• Relevant Alaska Licenses & Permits: Include your professional licenses, other applicable permits, and your Alaska NAICS code.
• Registered Agent Information: Provide your Alaska-registered agent’s details if your business entity requires one.
• Explain Alaska’s Tax Status: Inform the vendor that Alaska does not impose a statewide sales tax.
• For local applications: Include your local sales tax account number, selected resale codes, and the application fee (if required).For Purchases Within Alaska (Understanding Gross Receipts Tax Exemption)

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

• Communicate and educate: Explain that Alaska businesses do not hold state sales tax permits.
• Use the MTC Uniform Resale Certificate: If needed, complete the form with your business registration number and note that Alaska does not impose statewide sales tax.
• Consider voluntary registration: If you make frequent or large purchases in a vendor’s state, you may choose to register there for a sales tax permit, but be aware of the added compliance responsibilities.

For Purchases Within Alaska

• Check municipal ordinances: Identify the city or borough where you are buying goods. Contact their tax authority to determine local rates and resale certificate requirements.
• Obtain local resale certificates: If required, apply for a local resale certificate through that jurisdiction. Processes may involve application fees or annual renewals.
• Maintain accurate records: Keep copies of all certificates and link them to your transactions for compliance purposes. Some cities and boroughs, like Sitka, require businesses to apply for a local resale exemption certificate.
• Registration required: You must have an active local sales tax account to qualify.
• Application fees: Sitka, for example, charges $25 plus tax for a new certificate and $5 plus tax for replacement cards.
• Annual renewal: Certificates are valid on a calendar-year basis and expire on December 31 each year.
• Purchase codes: You must select up to four resale codes that describe the types of items you will purchase for resale.
• Card limits: Up to five cards can be issued per business. Business owners are responsible for training anyone authorized to use them.
• Proper use: Purchases must match the approved resale codes, and taxable and exempt items must be separated at checkout.
• Misuse penalties: Using the certificate for non‑qualified purchases is unlawful and can lead to fines, prosecution, or revocation of certificate privileges.

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

The Uniform Sales & Use Tax Certificate – Multijurisdiction Form

• Use your Federal EIN or Alaska business registration: Since Alaska does not issue a statewide resale certificate, enter your Federal Employer Identification Number (FEIN) or your Alaska business registration number.
• Clarify Alaska’s tax status: In the “Reason for Exemption” field, clearly state that Alaska does not impose a statewide sales tax. If applicable, note any local tax rules for the jurisdiction where you operate.
• Confirm vendor acceptance: Not all states accept this form. Before using it, review the MTC’s acceptance list and footnotes or verify directly with the vendor.

Streamlined Sales Tax (SST) Certificate of Exemption (Less Applicable to Alaska)

• Understand the limitation: Alaska is not an SST member state, so you won’t typically use this as your primary exemption certificate.
• When to use: If an out‑of‑state vendor in an SST state requires it, you may complete the form with your business registration or FEIN.
• Confirm before submitting: Always verify whether the vendor’s state will accept the SST certificate from a non‑member‑state business (More information here).

Frequently Asked Questions About Alaska Resale Exemptions

Are There Penalties for Misusing Exemption Documentation?

Does Alaska Exemption Documentation Expire?

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

• Verify state business status: Use the Alaska Department of Commerce Business Search Tool to confirm a buyer’s active registration.
• Validate local resale certificates: If a local resale certificate is presented, verify its authenticity with that specific city or borough’s tax office.  

How TaxHero Can Help Your Alaska Business

If you run an Ecommerce or CPG business in Oklahoma, securing an Oklahoma resale certificate, in this case, your Sales Tax Permit, is a smart move to protect your margins and streamline operations.

While Oklahoma doesn’t issue a separate resale certificate, your active Sales Tax Permit allows you to make tax-free purchases of inventory and raw materials intended for resale. This helps lower upfront costs, keeps your pricing competitive, and ensures compliance with Oklahoma’s sales tax laws.

Understanding Resale Certificates in Oklahoma

What is an Oklahoma Resale Certificate?

In Oklahoma, a resale certificate, also referred to as an exemption certificate, is a document issued by the Oklahoma Tax Commission (OTC) that allows businesses to:

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

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

However, an Oklahoma resale certificate is not a blanket exemption from all sales tax obligations. Businesses are still required to collect and remit sales tax on taxable sales to end consumers.

Why do you need an Oklahoma Resale Certificate?

Obtaining a resale certificate in Oklahoma offers several key advantages for businesses that buy goods for resale:

Here are some key benefits:

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

In Oklahoma, the required form is the Streamlined Sales and Use Tax Agreement Certificate of Exemption (SST Certificate). When completing it, you must include your Oklahoma Sales Tax Permit Number, which confirms you are registered with the Oklahoma Tax Commission and authorized to make tax-exempt purchases.

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

An Oklahoma Sales Tax Permit authorizes your business to collect and remit sales tax. An Oklahoma Resale Certificate (SST Certificate) allows you to purchase goods tax-free for resale. To use a resale certificate, your business must have an active sales tax permit.

Who Can Use a Resale Certificate in Oklahoma?

Businesses that purchase goods for resale can use an Oklahoma Resale Certificate. To qualify, you must actively sell or intend to incorporate into products for resale taxable tangible products and hold a valid Oklahoma Sales Tax Permit.

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

Getting a resale certificate in Oklahoma 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 Oklahoma Tax Commission (OTC). Only businesses with a valid Oklahoma Sales Tax Permit can issue or use a resale certificate.

2. Get an Oklahoma Sales Tax Permit

If you don’t already have one, apply for an Oklahoma Sales Tax Permit through the Oklahoma Tax Commission’s TAP 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 Oklahoma

3. Gather Your Business Information

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

• Business Identification Information: Legal business name, physical address, mailing address 
• Business Entity Structure (i.e., sole proprietorship, partnership, Subchapter S Corp., corporation, LLC, etc.)
• Federal Employer Identification Number (EIN or FEIN)
• Business Activity Details: Date & State of Incorporation, start date with the state of Oklahoma (nexus start date)
• NAICS Code

4. Complete the Proper Certificate

Oklahoma accepts two multistate forms:

• Streamlined Sales and Use Tax Agreement Certificate of Exemption (SST Certificate)
• MTC Uniform Sales & Use Tax Resale Certificate

Both forms must be properly completed. Under OAC 710:65-7-6, this means including the purchaser’s name, address, type of business, sales tax permit number, and signature.

5. Provide it to Your Suppliers

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.

6. Pay Any Applicable Fees

There is no fee to use the resale certificate itself, but you’ll need a valid Oklahoma Sales Tax Permit. The application fee for an Oklahoma Sales Tax Permit is typically $20, plus potential convenience fees if paying online by card.

To see if there’s a cost for the sales tax permit, check out our guide on Sales Tax Permit fees.

7. Maintain and Renew

Your resale certificate remains valid as long as your Sales Tax Permit is active and in good standing. For recurring purchases, vendors may keep the certificate on file as a blanket certificate, which remains valid until revoked in writing.

How to Use a Resale Certificate in Oklahoma

To use your resale certificate in Oklahoma for tax-exempt purchases, you must present a properly completed certificate to your supplier at or before the time of purchase.

Under OAC 710:65-7-6, vendors are only relieved of sales tax liability if they:

• Accept the certificate in good faith
• Receive it within 90 days of the sale
• Keep properly completed documentation (purchaser’s name, address, type of business, sales tax permit number, and signature)

Out-of-State Buyers: Oklahoma generally allows vendors to accept resale certificates issued by other states, provided they contain all required information. However, acceptance is at the vendor’s discretion, and some may require you to use an Oklahoma-accepted form instead. 

Always confirm the vendor’s policy in advance if you plan to use an out-of-state certificate.

Important: Misuse of a resale certificate, such as using it for personal or non-resale purchases, can result in fines, including double the amount of tax owed and administrative penalties under 68 O.S. §1356.2.

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

Multi-Jurisdictional Resale Certificates

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.

Here are the two primary multi-jurisdictional forms Oklahoma may accept, with the Streamlined Sales Tax (SST) Certificate of Exemption being the most officially recognized for Oklahoma due to its SST membership:

• Uniform Sales & Use Tax Resale Certificate – Multijurisdiction Form: Accepted in many states, including Oklahoma. To use it, the form must include your Oklahoma Sales Tax Permit number.
  This form is issued by the Multistate Tax Commission (MTC) and is ideal for businesses purchasing in multiple states.
• Streamlined Sales Tax (SST) Certificate of Exemption: Oklahoma is not a member of the Streamlined Sales Tax Governing Board.
  Therefore, while an Oklahoma vendor might accept an SST Certificate of Exemption, they are primarily looking for a valid Oklahoma Sales Tax Permit or the Uniform Sales & Use Tax Resale Certificate.
  You can find more information about the SST and its member states on the Streamlined Sales Tax Governing Board website.

Businesses need to verify whether Oklahoma accepts these multi-jurisdictional certificates and if there are any specific requirements or limitations on their use within the state. This is to avoid any audit issues.

Responsibilities When Using or Accepting an Oklahoma Resale Certificate

Buyer Responsibilities

If you use an Oklahoma 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.

• Oklahoma-based buyers: 
  • You must hold an active Oklahoma Sales Tax Permit.
  • You are required to provide your Sales Tax Permit number, name, address, type of business, and signature on the certificate.
  • Keep a copy of the certificates you issue for your records in case of an audit.
• Out-of-state buyers: 
  • You may present an out-of-state resale certificate or a multi-jurisdictional form (MTC or SST), but acceptance is at the Oklahoma vendor’s discretion.
  • If using these forms, you must include your home state’s permit number and ensure all fields are accurately completed.
  • Be prepared to provide additional documentation if requested by the vendor.

Businesses need to verify whether Oklahoma (or their specific vendor in Oklahoma) 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.

Seller Responsibilities

If you accept a resale certificate in Oklahoma, you must verify it and maintain proper documentation. Under OAC 710:65-7-6, vendors are relieved of liability only if they:

• Accept the certificate in good faith: Confirm the information provided is reasonable for the type of purchase being made.
• Ensure it’s properly completed: Check for the purchaser’s name, address, permit number (or equivalent), type of business, reason for exemption, and signature.
• Receive it within 90 days: You must have the certificate on file no later than 90 days after the sale.
• Retain records for at least 3 years: Under OAC 710:65‑3‑33, you must retain certificates and related sales records for a minimum of three years from the date of the invoice or tax remittance (whichever is later).
  These records should clearly show the customer’s name, address, date, transaction details, and amount.

Frequently Asked Questions About the Oklahoma Resale Certificate

Are There Penalties for Misusing an Oklahoma Resale Certificate?

Yes. Misusing a resale certificate, such as using it for personal purchases or non-resale items, is illegal in Oklahoma. Under 68 O.S. §1356.2, violators may face:

• A fine equal to double the amount of sales tax due
• An administrative penalty of up to $500
• Possible misdemeanor charges, including up to 60 days in jail

Always use the certificate only for qualifying resale purchases to avoid these penalties.

Does an Oklahoma Resale Certificate Expire?

Oklahoma resale certificates, including the Streamlined Sales Tax (SST) Certificate of Exemption and MTC Uniform Certificate, do not have a printed expiration date. However, they are valid only while your Oklahoma Sales Tax Permit remains active and in good standing.

If your permit is canceled, suspended, or expires, the certificate becomes invalid.

How Do I Verify a Resale Certificate in Oklahoma?

To confirm a buyer’s resale certificate:

• Request a properly completed exemption certificate (SST or MTC form) from the purchaser.
• Confirm the buyer’s Oklahoma Sales Tax Permit number (or home state number for out-of-state buyers).
• Use the Oklahoma Tax Commission’s Sales Tax Permit Lookup Tool to verify that the permit is active.

How TaxHero Can Help

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

Understanding Resale Certificates in Rhode Island

What is a Rhode Island Resale Certificate?

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

Why do you need a Resale Certificate in Rhode Island?

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

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

Who Can Use a Resale Certificate in Rhode Island?

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

• Your legal name and address
• Type of goods/products you’re selling
• Your seller’s business name
• Your Rhode Island Sales Tax Permit Number
• A description of the type of property you intend to purchase for resale
• Your authorized signature and date of issue

How to Use a Resale Certificate in Rhode Island

• Good Faith Acceptance: Vendors in Rhode Island will typically accept an out-of-state forms in good faith, provided it contains all the necessary information (buyer’s name, address, seller’s permit number from the issuing state, reason for exemption, etc.).
• Reciprocity: The acceptance may be based on reciprocal agreements with the state that issued the certificate. Additionally, Rhode Island participates in the Streamlined Sales Tax Agreement (SSTA), which facilitates acceptance of a uniform certificate such as the Streamlined Sales Tax Exemption Certificate.

Multi-Jurisdictional Resale Certificates

• Uniform Sales & Use Tax Resale Certificate – Multijurisdiction Form: This is a widely recognized form accepted by a significant number of states (though not all). Rhode Island may accept this form to be used to claim a resale exemption only when the item will be resold in the same form.
  It does not permit this certificate to be used to claim any other type of exemption. Out-of-state purchasers should include their home state’s registration number where indicated. You can find this form on the Multistate Tax Commission (MTC) website.
• Streamlined Sales Tax (SST) Certificate of Exemption: The state of Rhode Island became a full member of the Streamlined Sales Tax on January 1, 2007. As such, it accepts the SST Resale Certificate for qualifying resale purchases. Businesses using either certificate must ensure they meet all Rhode Island-specific requirements.
  You can find more information about the SST and its member states on the Streamlined Sales Tax Governing Board website.

Responsibilities When Using or Accepting a Resale Certificate in Rhode Island

Buyer Responsibilities

• Rhode Island-based buyers: Provide a fully completed Resale Certificate to your suppliers for qualifying purchases.
• Out-of-state buyers: Rhode Island vendors accept out-of-state forms, such as the Streamlined Sales Tax (SST) Certificate of Exemption, if buyers complete them properly and comply with Rhode Island’s requirements.

Seller Responsibilities

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

Frequently Asked Questions About the Rhode Island Resale Certificate

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

Does a Rhode Island Resale Certificate Expire?

How Do I Verify a Rhode Island Resale Certificate?

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

How TaxHero Can Help

Understanding Resale Certificates in Kansas

What is a Kansas Resale Certificate?

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

Why do you need a Kansas Resale Certificate?

• Avoid Paying Sales Tax on Inventory: When you purchase inventory for resale, presenting a resale certificate lets you skip paying Kansas sales tax upfront, improving your cash flow.
• Maintain Competitive Pricing: By avoiding sales tax on purchases, you reduce your costs and gain more flexibility in pricing, especially helpful in competitive or price-sensitive markets.
• Legal Compliance: Proper use of a resale certificate ensures your business remains compliant with Kansas sales tax laws and avoids potential audits or penalties.

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

Who Can Use a Resale Certificate in Kansas?

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

1. Make Sure You’re Eligible

2. Get a Kansas Sales Tax Permit

3. Gather Your Business Information

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

4. Complete Form ST-28A

5. Submission

6. Pay Any Applicable Fees

7. Understand Renewal Requirements

How to Use a Resale Certificate in Kansas

In-State Buyers

• Be registered with the Kansas Department of Revenue
• Provide their valid Kansas Sales Tax Registration Number on the certificate
• Include a description of the tangible property or taxable service being purchased

Out-of-State Buyers

• Out-of-state buyers who are not registered for Kansas sales tax should generally use Form ST-28M (Multi-Jurisdiction Exemption Certificate) when purchasing inventory or component parts for resale from a Kansas vendor.
• If the out-of-state buyer has sales tax nexus in Kansas (e.g., drop shipping into the state), they must provide a Kansas sales tax registration number on the certificate.
• If the buyer has no nexus with Kansas and is not registered for Kansas sales tax, they should use Form ST-28M. While some Kansas sellers may accept the buyer’s home state’s resale certificate, using the ST-28M is generally the recommended practice as it’s the Kansas-provided form for such multi-jurisdictional exemptions.

Multi-Jurisdictional Resale Certificates

• Uniform Sales & Use Tax Resale Certificate – Multijurisdiction Form: Kansas allows use of this form only if it includes the buyer’s Kansas Sales Tax Registration Number and is fully completed. This certificate is published by the Multistate Tax Commission (MTC) and is recognized by many states for tangible personal property resale exemptions.
• Streamlined Sales Tax (SST) Certificate of Exemption: Kansas is a full member of the Streamlined Sales Tax Governing Board. As such, the Streamlined Sales Tax Certificate of Exemption is a recognized and accepted form for tax-exempt purchases for resale in Kansas. Kansas provides its version, Form PR-78SSTA. If a buyer is using the general SST Certificate of Exemption, it should be fully completed with their valid sales tax registration information (if registered in Kansas). 

Responsibilities When Using or Accepting a Kansas Resale Certificate

Buyer Responsibilities

• Kansas-based buyers: You must be registered with the Kansas Department of Revenue and provide a valid Kansas sales tax registration number when using Form ST-28A (Resale Exemption Certificate). This certificate should only be used to purchase items directly tied to your regular line of taxable retail business. For example, a clothing store should not use it to buy electronics unless those are also part of its resale inventory. Misuse could trigger audits and tax liabilities.
• Out-of-state buyers: Out-of-state retailers may use the Multi-Jurisdiction Exemption Certificate (Form ST-28M) when buying inventory in Kansas, but only under specific conditions. If the items are being drop-shipped into Kansas and the buyer has nexus in Kansas, they must provide a Kansas sales tax number. If they do not have nexus with Kansas, they should use the Multi-Jurisdiction Exemption Certificate (Form ST-28M). While some Kansas vendors may accept the buyer’s home state’s general resale certificate, using the Kansas ST-28M is the designated and most compliant method for out-of-state buyers not registered in Kansas to claim the resale exemption.

Seller Responsibilities

• Accept the certificate in good faith
• Ensure it includes all required information: buyer’s name, address, sales tax permit number (or equivalent), reason for exemption, and signature
• Reject the certificate if the items aren’t for resale (e.g., personal or business use)
• Retain records for at least three prior years: You must keep all exemption certificates and related sales tax documentation for your current year and the three years prior. Do not submit resale certificates to the Kansas Department of Revenue with your return; just keep them on file in case of an audit.

Frequently Asked Questions About the Kansas Resale Certificate

Are There Penalties for Misusing a Kansas Resale Certificate?

Does a Kansas Resale Certificate Expire?

How Do I Verify a Resale Certificate in Kansas?

How TaxHero Can Help

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.

Understanding Resale Certificates in Washington

What is a Washington Resale Certificate?

In Washington, they call “Resale Certificates” a “Reseller Permit.” This document, issued by the Washington Department of Revenue (Washington DOR), allows businesses to:

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

The purpose is to prevent double taxation, 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.

Washington Reseller Permit vs. Resale Certificates

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:

• Permit numbers that are unique to each business: The last two digits of the permit number indicate the year it expires, serving as an efficient way to immediately determine the document’s validity.
  While generally valid for four years, permits may be valid for only two years if the business is a contractor, has been open for less than 12 months, has not reported gross income in the last 12 months, or has failed to file tax returns in the last 12 months.
• Your business information: Generally, you no longer have to fill out the form as the permit is issued to your business and already includes the required details of your business. There is an optional field you can fill out for additional notes you wish to include related to a transaction
• A specific-purpose feature: A Washington Reseller Permit is solely for purchasing items intended for resale. It is illegal to use it for personal or non-resale purchases, such as office supplies, equipment for business operations, or promotional giveaways.
  However, if an item is legitimately purchased with a Reseller Permit for resale but is later used or consumed by the business (e.g., as an office supply or for personal use), then the business is required to remit and report the deferred sales tax on that item.
• Clear validity periods: You can find the effective date and expiration date listed in the upper-right corner of your Reseller Permit. This is a distinction from some, but not all, standard resale certificates from other states, as many states do have specific validity periods or require periodic renewal for their resale certificates.
• Restricted usage: Reseller permits are unavailable to unregistered or unlicensed businesses in Washington. The state issues it only to eligible registered businesses or other qualified sellers, such as:
  • Businesses with valid state endorsements
  • Licensed contractors operating in the labor industry as defined in RCW 82.32.783
  • Farmers not required to register with the Washington Department of Revenue

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.

Why do you need a Washington Resale Certificate?

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

Here are some key benefits:

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

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.”

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

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.

Who Can Use a Resale Certificate in Washington?

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:

• Businesses with State Endorsements: In Washington, you need state endorsements to operate your business in specific industries legally. The Business Licensing Service (BLS) often manages these endorsements. Below are a few examples of businesses that require a state endorsement in Washington.
  • Architecture firms Car rental services
  • Collection agencies
  • Cannabis, cigarette, tobacco, or vapor vendors
  • Vehicle manufacturers, for hire (taxi), transporters, disposals, and dealers
• Licensed Contractors: All contractors engaged in the labor industry are required to register under Washington’s law. You must be licensed or have a valid tax account in Washington to apply for a Reseller Permit.
  To become a licensed contractor, you must go to the Washington Department of Labor and Industries website and register there.
• Unregistered Farmers: Farmers who are not otherwise required to register with the Washington DOR for a general business license can still obtain and use a Reseller Permit if they are engaged in business activities that involve purchasing for resale. Farmers with a nexus in Washington are generally required to register to stay tax-compliant.
  Farmers may also use the Farmer’s Certificate for Wholesale Purchases and Sales Tax Exemptions form for qualified purchases.

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:

• Streamlined Sales Tax (SST) Certificate of Exemption
• Uniform Sales & Use Tax Resale Certificate – Multijurisdiction Form

For more information regarding these other resale certificates, refer to the “Multi-Jurisdictional Resale Certificates” section of this blog.

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

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: 

• The state will issue Reseller Permits only after verifying that the business is eligible to make wholesale purchases.
• Even if you have registered your business, the Washington State authorities must assess your application before you can receive a Reseller Permit.

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.

• To apply for or renew your Washington Resellers Permit: 
  • Log in to your tax account through the dor.wa.gov.
  • Enter your account details and complete the authentication challenge (if needed).
  • Find the “My DOR Services” section. From there, click the “Get Started” option.
  • Under the Excise Tax Account page, click the “Apply for/view a Reseller Permit” link.
  • Fill out the questionnaire, then submit your application. The approval process may take 10 business days, but can last up to 60 days.
• After receiving approval, you can print or update your Washington Resellers Permit:
  • Log in to your account and pass the authentication challenge (if applicable).
  • Go to the “My DOR Services Page”, then find the “Other services” section.
  • From the other services section, click the “Print your reseller permit” link.
  • This link will also show whether your permit is active or not. You may also update your business details on that page. After confirming that all details are accurate, you may proceed and click the “Print Permit” link.
  • A new tab will appear showing a preview of your Reseller Permit. Navigate the browser’s menu to download or print your permit.

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:

• Contractors or new businesses (have not operated for more than 12 months)
• Businesses that have not reported their gross income in the previous 12 months
• Businesses recognized by the state as actively non-reporting during their application
• Businesses that failed to file tax returns in the previous 12 months

To check your Reseller Permit’s validity, you have 3 options:

• Use your excise tax account at dor.wa.gov and view the active status of your Reseller Permit.
• Check your original copy of your Reseller Permit. The last 2 digits of your permit number indicate the year your permit expires.
• Under your permit number, you’ll also see the specific expiration date of your Reseller Permit.

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:

• There are significant changes to your business details, such as a shift in the business’s structure 
• or changes in the nature of the transaction (like purchasing different goods not described in the original Reseller Permit)

How to Use a Washington Resale Certificate

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:

• Streamlined Sales Tax (SST) Certificate of Exemption
• Uniform Sales & Use Tax Resale Certificate – Multijurisdiction Form (issued by the Multistate Tax Commission – MTC)

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.

Multi-Jurisdictional Resale Certificates

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

Unlike a standard resale certificate issued by a single state, a multi-jurisdictional certificate seeks recognition and acceptance by multiple states as valid proof that the buyer intends to purchase the goods for resale and is therefore exempt from sales tax at the time of purchase.

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

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:

• Uniform Sales & Use Tax Resale Certificate – Multijurisdiction Form: This is a widely recognized form accepted by a significant number of states, including Washington. Businesses that are not required to be registered in Washington (i.e., do not have nexus) are encouraged to use this form.
  You can provide your home state’s sales tax ID number to properly complete this form. You can find this form on the Multistate Tax Commission (MTC) website.
  NOTE: If you are a registered vendor in Washington, meaning you hold a Washington Business License and must collect and remit sales tax, follow the specific instructions outlined in WAC 458-20-10201 when using this certificate.
  • Registered Washington Vendors: You must include your Reseller Permit number when completing the Uniform Sales & Use Tax Resale Certificate form. Otherwise, the Washington DOR may not recognize your form as a valid resale certificate in case of an audit.
    To prevent this risk, using the Washington-issued Reseller Permit document is generally the most straightforward and recommended option.
• Streamlined Sales Tax (SST) Certificate of Exemption: Washington is a member of the Streamlined Sales Tax Governing Board. Therefore, while a Washington vendor will typically accept an SST Certificate of Exemption. For specific instructions for using this certificate, you may view the official form revised by the state of Washington here.
  You can also learn more about Washington’s SST membership details through its Streamlined sales tax® dedicated page.
  • Registered Washington Vendors: Similar to the Uniform Sales & Use Tax Resale Certificate, you’re required to provide your Reseller Permit number when using this form.

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. 

Responsibilities When Using or Accepting a Washington Resale Certificate

Buyer Responsibilities

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.

• General Washington-based buyers: Ensure all your business details are accurate in your Reseller Permit before providing a copy to your Washington vendor. You must guarantee that you only intend to use the purchased goods for resale.
• Farmers: Farmers may use a Reseller Permit to purchase goods such as feed, seed, seedlings, fertilizers, or spray materials. However, if the Washington DOR requires you to register, you will need to obtain the appropriate license first.
  Once you’re registered, you’ll also have access to the Farmer’s Certificate for Wholesale Purchases and Sales Tax Exemptions. It’s another document you can use to make tax-exempt purchases for goods related to farming businesses.
• Contractors: Licensed contractors in labor industries may use Reseller Permits to purchase materials and contract labor for retail or wholesale construction. Take note of your Reseller Permit’s validity period, which should only be for 2 years.
• Out-of-state buyers: Businesses not required to register in Washington (no nexus) are allowed to utilize multi-jurisdictional resale certificates. Those certificates must be properly completed and provided at the time of the purchase to qualify for an exemption.
  However, businesses with a nexus in Washington must register with the Washington DOR. Otherwise, you’ll subject your business to risks of non-compliance, leading to severe penalties.
• Subsequent Use of Items Purchased for Resale (Deferred Sales Tax): If you’re a business that may use the Reseller Permit for dual-purpose purchases, your duty is to report deferred taxes. This refers to the goods you purchased without paying for sales tax, as it was originally intended for resale.
  However, since you decided to use or consume the goods for other purposes, you are now liable for sales tax. In this case, you must report and remit the deferred tax to the Washington DOR. Otherwise, you may subject yourself to penalties if found guilty of misusing a Reseller Permit.

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.

Seller Responsibilities

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:

• Accept the certificate in good faith (including other properly signed and completed state-approved exemption certificates)
• Check the Reseller Permit or the exemption certificate’s validity
• Obtain a copy of the buyer’s Washington Reseller Permit. Alternatively, if allowed by WAC 458-20-102, you may use the Department of Revenue’s “Business Lookup” tool to verify the buyer’s information, including their active reseller permit status, and retain a printout of this verification.
• Export and save the record you received upon verifying a buyer’s Reseller Permit through the “Reseller Permit Verification Service.” This service is free, and you can use it when verifying multiple records. 
• Ensure it includes all required information: buyer’s name, address, sales tax permit number (or equivalent), reason for exemption, and signature
• Reject the certificate if the items aren’t for resale (e.g., personal or business use) and collect sales tax for the transaction
• Verify your recurring customer’s Reseller Permit at least once a year

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.

Frequently Asked Questions About the Washington Resale Certificate

Are There Penalties for Misusing a Washington Resale Certificate?

Yes. Misusing a Washington Reseller Permit even without fraudulent intent leads to the following penalties defined under the RCW 82.32.291:

• Pay the due tax with an additional 50% penalty and/or
• Reseller Permit or other license revocation

Does a Washington Resale Certificate Expire?

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.

How Do I Verify a Resale Certificate in Washington?

If you’re a seller in Washington, there are 2 ways to validate a Reseller Permit:

• Use the “Business Lookup” tool for validating only one permit at a time. 
  • Enter the buyer’s Reseller permit number and click “search.”
  • Pass the website verification, then select “Verify.”
  • Find the correct business name among the search results and review the relevant details from there.
• Use the “Reseller Permit Verification” service (free) for verifying multiple permits.
  • Create and upload an electronic file containing your customer’s Reseller Permit details.
  • The service shall deliver your original data and the customer’s information available on all records.
  • Examine the information to verify the permit’s validity. After that, you may export, save, and then submit your file online via the Washington DOR.
  • Keep a copy of the exported document.

For more instructions, visit the Washington DOR’s official webpage or send an email to resellerspermit@dor.wa.gov.

How TaxHero Can Help

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!

• The Ultimate Business Guide to Sales Tax in Massachusetts
• What is a Seller’s Permit?
• Massachusetts Sales Tax Rate
• How to Get a Massachusetts Resale Certificate for Your Business

Who Needs a Seller’s Permit in Massachusetts?

• you meet physical or economic nexus within the state and
• you are selling taxable products or providing taxable services to customers in Massachusetts

How to Register for a Seller’s Permit in Massachusetts?

1. Where to Apply for a Seller’s Permit in Massachusetts?

2. What Information Do You Need to Get a Seller’s Permit in Massachusetts?

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

3. How Much are the Fees for Applying for and Renewing a Seller’s Permit in Massachusetts?

4. What are Other Ways to Register for a Seller’s Permit in Massachusetts?

• Use TaxHero. Registering for a seller’s permit, mainly when it involves multiple permits, can be a tedious and time-consuming task requiring much effort. Let the experts at TaxHero save you from this hassle, and let us handle the registration process in all states where you have nexus as part of our all-inclusive sales tax service.

What’s Next?

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

Understanding Resale Certificates in Colorado

What is a Colorado Resale Certificate?

In Colorado, a Declaration of Wholesale or Entity Sales Tax Exemption is a document issued by the Colorado Department of Revenue (CDOR) that allows businesses to:

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

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

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

Why do you need a Colorado Resale Certificate?

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

Here are some key benefits:

• Avoid Paying Sales Tax on Inventory: The most direct benefit is purchasing inventory and materials that will be resold to customers without paying Colorado’s sales tax upfront. 
• Maintain Competitive Pricing: By not paying sales tax on the cost of goods, businesses have more flexibility in setting competitive prices for products in the Colorado market. This can be a crucial advantage, especially in price-sensitive industries.
• Legal Compliance: Possessing and using a valid resale certificate for eligible purchases ensures businesses comply with Colorado’s sales tax laws and regulations to avoid penalties. Crucially, vendors must keep copies of valid resale certificates on file to justify why they did not collect sales tax on a particular sale. This shifts the burden of proof to the purchaser if the CDOR later questions the exemption during audits.

In Colorado, the specific form to declare eligibility for a resale exemption is the DR 5002.

When filling out DR 5002, a purchaser must include their Colorado taxpayer number to identify that it is registered with the CDOR and authorized to make tax-exempt purchases for resale.

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

A Colorado Sales Tax Permit authorizes your business to collect and remit sales tax on taxable sales to customers. On the other hand, a Colorado Resale Certificate (DR 5002) 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. Note that in Colorado, a sales tax permit is generally referred to as a “sales tax license.”

Who Can Use a Resale Certificate in Colorado?

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

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

Getting a resale certificate in Colorado 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 Colorado Department of Revenue (CDOR). Only businesses with a valid Colorado Sales Tax License can use a resale certificate.

2. Get a Colorado Sales Tax License: If you don’t already have one, apply for a Colorado Sales Tax License through the CDOR website. This License is required to complete the resale certificate.

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

3. Provide a Valid Sales Tax Permit License: Businesses outside of Colorado without a sales tax nexus in the state do not need a Colorado Sales Tax License. Instead, you can present a valid resale certificate or sales tax permit from your home state to Colorado vendors.

However, if your business has a sales tax nexus in Colorado, you must register for a Colorado sales tax license. This is mandatory to make tax-exempt purchases for resale in the state using DR 5002.

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

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

5. Complete the DR 5002: Download and fill out the Colorado Resale Certificate (DR 5002) from the Colorado Department of Revenue’s website. You’ll present this form to your suppliers when making tax-exempt purchases.

6. Submission: No submission required in Colorado. You don’t submit the resale certificate to the state. Instead, give the completed form directly to your suppliers when buying items for resale.

7. Pay Any Applicable Fees: There’s no cost to use Form DR 5002, but you’ll need a valid Colorado Sales Tax License. To see if there’s a cost for the license, check out our guide on Sales Tax Permit fees.

8. Understand Renewal Requirements: In the Form DR 5002, you will see a mandatory field labelled “expiration date” under the sales tax license number. You’ll find this in the upper right corner of the form. This indicates that the DR 5002 is only active as long as your sales tax permit is also active.

If necessary, renew your sales tax permit or license to maintain your ability to make tax-exempt purchases for resale.

How to Use a Colorado Resale Certificate

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

Colorado generally accepts resale certificates issued by other states.

• Good Faith Acceptance: Vendors in Colorado will typically accept an out-of-state resale certificate in good faith, provided it contains all the necessary information (buyer’s name, address, seller’s permit number from the issuing state, reason for exemption, etc.)

If you are an out-of-state business purchasing from a vendor in Colorado and plan to use your home state’s resale certificate, be prepared to provide it at the time of purchase.

However, note that Colorado vendors have the option to decline alternative resale certificates. This is to avoid being subject to a greater burden of proof when accepting forms other than the DR 5002. With that in mind, contact your Colorado supplier ahead of time to confirm their policy on accepting out-of-state certificates.

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

Multi-Jurisdictional Resale Certificates

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

Unlike a standard resale certificate issued by a single state, a multi-jurisdictional certificate seeks recognition and acceptance by multiple states as valid proof that the buyer intends to purchase the goods for resale and is therefore exempt from sales tax at the time of purchase.

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

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

• Uniform Sales & Use Tax Resale Certificate – Multijurisdiction Form: This is a widely recognized form accepted by a significant number of states (though not all). Colorado accepts the form, but it cannot be used for the resale of taxable services.
  Additionally, you must include your Colorado Sales Tax License number to complete the form properly. Out-of-state purchasers should include their home state’s registration number. You can find this form on the Multistate Tax Commission (MTC) website.
• Streamlined Sales Tax (SST) Certificate of Exemption: Colorado is not a member of the Streamlined Sales Tax Governing Board. Therefore, while a Colorado vendor might accept an SST Certificate of Exemption, they are primarily looking for a Colorado Resale Certificate (DR 5002) or the Uniform Sales & Use Tax Resale Certificate.
  You can find more information about the SST and its member states on the Streamlined Sales Tax Governing Board website.

As stated on Colorado’s official website, alternative resale certificates are allowed. This includes the Uniform Sales & Use Tax Resale Certificate by the MTC. 

Despite this confirmation, it’s still best to verify which certificates your Colorado suppliers are willing to accept. This practice ensures seamless transactions and helps avoid audit issues.

Responsibilities When Using or Accepting a Colorado Resale Certificate

Buyer Responsibilities

If you’re using a Colorado 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.

• Colorado-based buyers: Provide a fully completed Form DR 5002 to your suppliers for qualifying purchases. Ensure you use your 8-digit Colorado Account Number (CAN), which is your primary business tax ID.
• Out-of-state buyers: If your business has a sales tax nexus within Colorado, you are generally required to register with the Colorado Department of Revenue. This grants you a Colorado Sales Tax License, which you need to complete a Form DR 5002. Alternatively, you may also provide your home state’s sales tax permit number in the form if you do not have nexus in Colorado.
  In case you don’t have a valid sales tax permit, you generally cannot claim a resale exemption. If your business does not genuinely need to register for sales tax in any state, you must confirm with your Colorado supplier beforehand, as they may decline the transaction.

Seller Responsibilities

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

• Accept the certificate in good faith
• Verify the certificate’s validity by checking the sales tax license number and keep a record of the license’s expiration date. This is to comply with Colorado’s Code of Regulations.
• For recurring transactions, confirm that the sales tax permit number has not expired
• Ensure it includes all required information: buyer’s name, address, sales tax permit number (or equivalent), reason for exemption, and signature
• Ensure that you don’t use the certificate to claim sales tax exemption on resale of taxable services when you accept a Uniform Sales & Use Tax Resale Certificate.
• Reject the certificate if the items aren’t for resale (e.g., personal or business use)

Keep records for at least 3 years: A properly completed resale certificate is your official proof of why sales tax wasn’t collected. You must retain it in your records for at least 3 years in case of a sales tax audit by the Colorado Department of Revenue.

Frequently Asked Questions About the Colorado Resale Certificate

Are There Penalties for Misusing a Colorado Resale Certificate?

Yes. Misusing a Colorado resale certificate may result in a sales tax penalty of $15 or a percentage of the amount due equal to 10%. The CDOR adds an additional ½ % for each month the due tax is unpaid. This penalty shall not exceed a total of 18%.

In severe cases, false or fraudulent statements by any retailer can lead to a Class 5 Felony charge. Verifying false statements can also result in a Class 2 misdemeanor. Learn more via the Colorado Department of Revenue.

Does a Colorado Resale Certificate Expire?

The resale certificate (DR 5002) expires along with the user’s seller’s permit. As long as your Colorado Sales Tax License is active, the resale certificate remains valid. The same rule applies when using any state’s sales tax permit when completing the form.

How Do I Verify a Resale Certificate in Colorado?

To verify a resale certificate in Colorado, follow these steps:

1. Request a completed DR 5002 or any completed resale certificate from the buyer.
2. Locate their 8-digit Colorado Sales Tax License Number on the form.
3. Use the “Verify a License or Exemption Certificate” option in the Colorado Revenue Online and enter the license number. Read the instructions on the page carefully.

How TaxHero Can Help

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

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

Understanding Resale Certificates in Virginia

What is a Virginia Resale Certificate?

In Virginia, a Sales and Use Tax Certificate of Exemption (Form ST-10) is a document issued by the Virginia Department of Taxation that allows businesses to:

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

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

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

Why do you need a Virginia Resale Certificate?

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

Here are some key benefits:

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

In Virginia, the specific form required for a resale certificate is the Commonwealth of Virginia Sales and Use Tax Certificate of Exemption (Form ST-10).

When filling out Form ST-10, a purchaser must include their Virginia taxpayer number to identify that it is registered with the Virginia Department of Taxation and authorized to make tax-exempt purchases for resale.

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

A Virginia Sales Tax Permit authorizes your business to collect and remit sales tax on taxable sales to customers. A Virginia Resale Certificate (Form ST-10), 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, it’s best to have an active sales tax permit.

Who Can Use a Resale Certificate in Virginia?

Businesses that purchase goods for resale can use a Virginia Resale Certificate. To do so, the business must actively sell taxable tangible products and hold a valid Virginia Sales Tax Permit or an out-of-state registration number for unregistered businesses.

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

1. Make Sure You’re Eligible: Your business must sell taxable goods or services and be registered with the Virginia Department of Taxation. Businesses with a valid Virginia Sales Tax Permit can easily use a resale certificate without any additional registration steps.

2. Provide Your Out-of-State Registration Number: Unregistered businesses may still use Virginia’s official resale certificate (Form ST-10) as long as you provide the required details on the form and your out-of-state registration number, which you can get from the Virginia Department of Taxation.

3. Get a Virginia Sales Tax Permit: If you don’t already have one, apply for a Virginia Sales Tax Permit through the Virginia Department of Taxation website. This permit will make it easier for you to use the Form ST-10 without needing an out-of-state registration number and will help you stay compliant with the state of Virginia.

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

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

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

5. Complete Form 01-339: Download and fill out the Virginia Sales and Use Tax Certificate of Exemption (Form ST-10) from the Virginia Department of Taxation’s website. You’ll present this form to your suppliers when making tax-exempt purchases.

6. Submission: No submission required in Virginia. You don’t submit the resale certificate to the state. Instead, give the completed form directly to your suppliers when buying items for resale.

7. Pay Any Applicable Fees: There’s no cost to use the Form ST-10. However, it’s recommended to get a valid Virginia sales tax permit for easier usage. To see if there’s a cost for the permit, check out our guide on Sales Tax Permit fees.

8. Understand Renewal Requirements: Your resale certificate remains valid only while your Sales Tax Permit is active. Fortunately, a Virginia Sales Tax Permit does not need to be renewed; however, the state can revoke it under certain circumstances. If you don’t have a permit, you must keep your out-of-state registration number valid.

How to Use a Resale Certificate in Virginia

To properly utilize your resale certificate in Virginia when making tax-exempt purchases for resale, you’ll need to present a valid copy of your Virginia Sales and Use Tax Certificate of Exemption (Form ST-10) to your supplier at the time of purchase.

In this case, even if you are not a registered seller in Virginia, you may still use its state-issued resale exemption certificate as long as you provide all the required details on the form. That’s because Virginia generally prefers its state-issued resale certificate.

Virginia can also accept resale certificates issued by other states. However, there are specific conditions:

• Match Virginia’s Form ST-10: Out-of-state resale certificates are only accepted in Virginia if they contain all the necessary information found in Virginia’s official resale certificate. Virginia vendors may not accept your state’s resale certificate if it lacks the required details.
• Good Faith Acceptance: Vendors in Virginia can accept an out-of-state resale certificate in good faith, provided it contains all the necessary information (buyer’s name, address, seller’s permit number from the issuing state, reason for exemption, etc.) and meets the first condition stated above. 

If you are an out-of-state business purchasing from a vendor in Virginia and plan to use your home state’s resale certificate, be prepared to provide it at the time of purchase and ensure it meets the requirements stated above.

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 Virginia, you may visit the state’s website.

Multi-Jurisdictional Resale Certificates

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

Unlike a standard resale certificate issued by a single state, a multi-jurisdictional certificate 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 Virginia might encounter:

• Uniform Sales & Use Tax Resale Certificate – Multijurisdiction Form: This is a widely recognized form accepted by a significant number of states (though not all). Virginia may accept the form, but only if it includes your Virginia Sales Tax Permit number and contains all the information required in Virginia’s Form ST-10.
  Out-of-state purchasers should include their home state’s registration number. You can find this form on the Multistate Tax Commission (MTC) website.
• Streamlined Sales Tax (SST) Certificate of Exemption: Virginia is not a member of the Streamlined Sales Tax Governing Board. Therefore, a Virginia vendor cannot accept an SST Certificate of Exemption.
  Virginia has also confirmed that it does not allow the usage of other exemption forms outside of the state. Find more information about the SST and its member states on the Streamlined Sales Tax Governing Board website.

While Virginia accepts the Uniform Sales & Use Tax Resale Certificate (Multijurisdiction Form), it’s still up to the seller whether they’ll accept these forms in good faith or not. After all, they bear the responsibility for sales tax collection if the exemption is invalid.

Contact your Virginia supplier ahead of time to verify if they can accept these multi-jurisdictional forms. This is an important practice to avoid any audit issues.

Responsibilities When Using or Accepting a Virginia Resale Certificate

Buyer Responsibilities

You are responsible for ensuring that you use a Virginia resale certificate only for purchases of goods or services you intend to resell. Using it for personal or operational items (like office supplies or equipment) is illegal and may lead to penalties.

• Virginia-based buyers: Provide a fully completed Form ST-10 to your suppliers for qualifying purchases.
• Out-of-state buyers: Provide your out-of-state registration number when using Virginia’s Form ST-10 to properly use the resale certificate. When using your home state’s resale certificate, ensure that your out-of-state resale certificate matches all the details required in Virginia’s Form ST-10.

Virginia strictly prohibits the use of the Form ST-10 to purchase tobacco products for resale. If you are a cigarette retailer, Virginia requires you to register for a separate form called Form ST-10C first.

Seller Responsibilities

As a seller in Virginia, accepting a resale certificate comes with a variety of responsibilities. Such as verifying and retaining proper documentation for tax-exempt sales. Other than that, you must also:

• Accept the certificate in good faith
• Verify the buyer’s sales tax permit number if you have doubts. At the moment, you can only do this by contacting the Virginia Department of Taxation.
• Ensure it includes all required information: buyer’s name, address, sales tax permit number (or equivalent), reason for exemption, and signature
• Reject the certificate if the items aren’t for resale (e.g., personal or business use). The same applies if the items intended for resale are tobacco products.

Keep detailed records of the transaction: A properly completed resale certificate is your official proof of why sales tax wasn’t collected. You must retain it in your records indefinitely. This is in case of a sales tax audit by the Virginia Department of Taxation. The same logic applies if there might be updates in the transaction.

Frequently Asked Questions About the Virginia Resale Certificate

Are There Penalties for Misusing a Virginia Resale Certificate?

Yes. Misusing a Virginia Resale Certificate results in a $1,000 penalty. It could also lead to a temporary suspension of your resale certificate. Using a suspended resale certificate leads to a Class 1 misdemeanor. Misusing a Virginia resale certificate with fraudulent intentions may lead to imprisonment or a $2,500 fine. Learn more from the Virginia Department of Taxation.

Does a Virginia Resale Certificate Expire?

The resale certificate Form ST-10 has no expiration date. However, it is only valid while your Virginia Sales Tax Permit remains active. For out-of-state businesses, you need to keep your out-of-state registration numbers active.

How Do I Verify a Resale Certificate in Virginia?

If you’re a seller in Virginia, there is only one way to validate a Virginia resale certificate (Form ST-10). Since online verification is currently not an option, you must contact the Virginia Department of Taxation at 804-367-8037 for assistance.

How TaxHero Can Help

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

What is a Seller’s Permit?

How to get a Seller’s Permit?

Steps

• Fill out an application,
• Complete the documentation and pay the required fees (if any), and
• Submit the application.

Documents Needed

• Name and location of your business
• Social Security Number (SSN) or Employer Identification Number (EIN)
• Business entity structure
• Expected monthly sales
• Contact information and form of identification
• Bank account information
• Vendors’ information

States Guide

Cost of a Seller’s Permit

Renewal of Seller’s Permit

• Texas
• California
• Michigan
• Virginia

What is the Difference Between a Seller’s Permit and a Reseller Permit?

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