Starting a business in Arkansas is an exciting venture, but it’s crucial to understand the legal requirements that come with it. A common area of confusion for many new business owners is understanding the need for a Sales Tax Permit in Arkansas, also known as a seller’s permit. This permit allows you to collect sales tax on taxable products and services from customers in Arkansas. This blog will guide you through each step of applying for a sales tax permit, with clear instructions to help you and your business begin collecting sales tax effortlessly.Related Topics:
How to Register for a Seller’s Permit in Arkansas?
When applying for a sales tax permit in Arkansas, you can use the online application process on the Arkansas Department of Finance and Administration (DFA) website to complete your sales tax registration.
1. Where to Apply for a Seller’s Permit in Arkansas?
The first step to register for a sales tax permit online is to go to Arkansas Taxpayer Access Point (ATAP) and click on “Register a Business” found in the “Businesses” section if you have a physical presence in the state and “Register a Remote Seller” if you are an out-of-state seller with no physical presence.For the purpose of this guide, we will focus on applying for a seller’s permit in Arkansas as an out-of-state/remote seller with no physical presence.At the beginning of the registration process, you will come across a question that says, “Are you a remote seller and/or marketplace facilitator?” Click the drop-down and answer “Yes” since you are registering as an out-of-state/remote seller with no physical presence.You will then follow through the prompts that walk you through your registration process and provide the necessary information.
2. What Information Do You Need to Get a Seller’s Permit in Arkansas?
To successfully acquire a seller’s permit in Arkansas, it’s important to prepare and provide specific information and documents. The following is a list of the necessary information and documents required to register a sales tax permit in Arkansas:
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
3. How Much are the Fees for Applying for and Renewing a Seller’s Permit in Arkansas?
Registering for a sales tax permit in Arkansas costs $50 for businesses with a physical presence in the state and free for out-of-state/remote sellers with no physical presenceArkansas sales tax permits do not need to be renewed and remain valid for as long as the business exists without any changes in ownership or structure.
4. What are Other Ways to Register for a Seller’s Permit in Arkansas?
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.
Once you complete the online submission process, you’ll be presented with a confirmation page verifying that your request for a sales tax permit has been successfully submitted. It’s highly recommended to make note of the confirmation code provided, as you’ll need this code to check the status of your application moving forward. Be sure to keep the confirmation code handy for your records and future reference.If your online submission for a seller’s permit in Arkansas is approved, you will receive an email from the state approving your application with your state account within 7 to 14 business days. You will also receive this same letter at your mailing address.You will then log in to the Arkansas Taxpayer Access Point (ATAP) and click “Sign up” under the “New to ATAP?” section. Select the “Administrator Login” option during the sign-up process. While additional third-party logins can be added later, for now, utilize the Account Number provided in the email to create your primary online user account. With this initial account setup, you’ll be ready to manage your sales tax account through the ATAP platform.Obtaining a Sales Tax Certificate requires you to collect sales tax for eligible sales in Arkansas. The document will also specify your filing frequency for sales tax returns and due dates.If you ever encounter any difficulties, have any questions, or prefer TaxHero to manage these tasks on your behalf, don’t hesitate to reach out! Contact us today.
If you run an Ecommerce or CPG business in Mississippi, securing a Mississippi resale certificate, in this case, your Sales Tax Permit, is a smart move to protect your margins and streamline operations.
While Mississippi 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 Mississippi’s sales tax laws.
Understanding Resale Certificates in Mississippi
What is a Mississippi Resale Certificate?
In Mississippi, there is no separate resale certificate form. Instead, the Mississippi Sales Tax Permit, issued by the Mississippi Department of Revenue (DOR), functions as your resale certificate. 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.
The resale certificate helps avoid double taxation, once at wholesale and again at the point of retail sale.
However, a Mississippi 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 Mississippi Resale Certificate?
Obtaining a valid Mississippi Sales Tax Permit (used in place of a resale certificate) gives your business several important advantages when reselling goods:
Here are some key benefits:
Avoid Paying Sales Tax on Inventory: You can purchase inventory tax-free, so long as the goods are for resale and your tax permit is active and valid.
Maintain Competitive Pricing: By not paying sales tax upfront on goods you resell, you reduce your cost of goods sold, giving you pricing flexibility in competitive markets.
Legal Compliance: Using your sales tax permit number for resale purchases ensures you’re following state rules, avoiding misclassification or penalty risks.
Mississippi does not issue a specific resale certificate form. Instead, resellers must present their sales tax permit number issued by the Mississippi Department of Revenue at the time of purchase to claim the exemption.
Resale Certificate vs. Sales Tax Permit: What’s the Difference?
Since there is no separate resale certificate form in Mississippi, the Mississippi Sales Tax Permit serves both purposes:
A Mississippi Sales Tax Permit authorizes your business to collect and remit sales tax on taxable sales to customers within the state.
That same permit also functions as your resale certificate, allowing you to purchase goods tax-free from suppliers if those goods are intended exclusively for resale.
To claim resale exemptions in Mississippi, you must have an active and valid sales tax permit and present the permit number to your supplier at the time of purchase.
Who Can Use a Resale Certificate in Mississippi?
In Mississippi, any business with a valid Sales Tax Permit can claim a resale exemption. The business must be actively registered with the Mississippi Department of Revenue and intend to resell the goods being purchased.
How to Get a Resale Certificate in Mississippi: A Step-by-Step Guide
Your Mississippi Sales Tax Permit serves the same purpose as a resale certificate. Here’s how to get it:
1. Make Sure You’re Eligible
Your business must sell taxable goods or services and be registered with the Mississippi Department of Revenue. Only businesses with a valid Mississippi Sales Tax Permit can use a resale certificate (i.e., their tax permit) to make exempt purchases.
2. Get a Mississippi Sales Tax Permit
If you don’t already have one, apply for a Mississippi Sales Tax Permit through the Mississippi Department of Revenue’s Taxpayer Access Point (TAP) portal. This permit is required before you can make tax-exempt purchases for resale.
When making a purchase, simply present your valid sales tax permit or provide your permit number to your supplier.
5. Submission
There’s no need to submit anything to the state. Give your sales tax permit number directly to your supplier when making a tax-exempt purchase for resale.
6. Pay Any Applicable Fees
The Mississippi Sales Tax Permit is issued free of charge. There are no state-level fees associated with obtaining this permit.
7. Understand Renewal Requirements
Your resale privileges remain active as long as your Sales Tax Permit is valid. Your resale privileges remain active as long as your Sales Tax Permit is valid. While Mississippi sales tax permits typically do not require periodic renewal, it’s important to update your permit with the Mississippi Department of Revenue if there are any changes to your business, such as an address, ownership, or legal structure, to maintain compliance and continue making tax-exempt purchases.
How to Use a Resale Certificate in Mississippi
To properly claim a resale exemption in Mississippi, a business must present its valid Mississippi Sales Tax Permit or license number to the supplier at the time of purchase. Since Mississippi does not issue a separate resale certificate form, the permit itself serves this purpose.
Mississippi generally accepts out-of-state resale certificates, but vendors should consider these conditions:
Good Faith Acceptance: Vendors must accept resale certificates in good faith. That means ensuring the certificate includes the buyer’s name, address, out-of-state permit number, a clear reason for exemption, and signature. Sellers should verify that the goods are truly being purchased for resale.
Reciprocity: Mississippi may accept resale certificates from other states based on reciprocity. Always check with the Mississippi Department of Revenue or confirm directly with the vendor for their policy on accepting out-of-state 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.
Uniform Sales & Use Tax Resale Certificate – Multijurisdiction Form: Accepted in many states, including Mississippi. To use it, the form must include your Mississippi 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: Mississippi is not a member of the Streamlined Sales Tax Governing Board. Therefore, while a Mississippi vendor might accept an SST Certificate of Exemption, they are primarily looking for a valid Mississippi 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 Mississippi 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 Mississippi Resale Certificate
Buyer Responsibilities
If you’re using a Mississippi resale certificate (i.e., your Mississippi Sales Tax Permit), you’re responsible for ensuring it’s used only for purchases of items you intend to resell in the normal course of business. Using it for personal use, operational items, or equipment is considered misuse and can lead to serious penalties.
Mississippi-based buyers: You must have an active Mississippi Sales Tax Permit to claim the resale exemption. Always provide a copy of your permit or permit number to the vendor at the time of purchase. Misuse of your permit to avoid paying tax on personal purchases is considered a misdemeanor and may result in fines, imprisonment, and additional penalties.
Out-of-state buyers: Mississippi may honor out-of-state resale exemption, or in this case, provided the document includes all necessary information, such as your home state’s registration number and intent to resell the goods. However, vendors may reject certificates if resale intent is unclear or not documented properly.
Seller Responsibilities
As a vendor in Mississippi, accepting a resale certificate (or Mississippi Sales Tax Permit) means you are responsible for ensuring proper use and documentation of the exemption. You must:
Accept the certificate in good faith: Only if you believe the buyer legitimately intends to resell the goods.
Ensure the certificate includes all required information: This includes the buyer’s name, address, sales tax permit number, reason for exemption, and signature.
Reject certificates for non-qualifying purchases: If the goods are not for resale, such as for internal use, you must charge sales tax.
Retain records for at least 3 years: Mississippi law requires you to keep documentation of all tax-exempt sales, including permit details, for at least three years in case of audit. These documents are not submitted with your sales tax return but must be available upon request.
Frequently Asked Questions About the Mississippi Resale Certificate
Are There Penalties for Misusing a Mississippi Resale Certificate?
Yes, misusing a Mississippi resale certificate can lead to serious penalties. Under Mississippi Code § 27‑65‑85(e), false use is a misdemeanor punishable by fines up to $500 and/or 6 months in jail. Civil penalties may also include full tax owed, up to 50% in damages, and interest.
Does a Mississippi Resale Certificate Expire?
Mississippi does not issue a separate resale certificate form. Your Mississippi Sales Tax Permit functions as your resale certificate. While the permit has no fixed expiration date, it is only valid as long as it remains active and in good standing. If your permit is revoked, canceled, or becomes inactive, you can no longer make tax-exempt purchases for resale.
How Do I Verify a Resale Certificate in Mississippi?
Mississippi does not issue a separate resale certificate. Instead, the Sales Tax Permit serves as the resale authorization. As a seller, you’re responsible for verifying that the buyer’s permit is valid and active before accepting it for tax-exempt purchases.
If you’re a seller in Mississippi, here’s how to validate a buyer’s resale certificate:
Navigate to “Tools” in the main menu and select “Verify a Permit Number.”
Under “Permit Type,” choose “Sales Permit.”
Enter the buyer’s Permit ID in the appropriate field.
Click “Search Permit” to confirm the permit is active and valid.
How TaxHero Can Help
You don’t have to complicate managing sales tax compliance and resale certificates in Mississippi. TaxHero simplifies the process, from keeping your Mississippi 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 Mississippi process today!
Starting a business in West Virginiais an exciting venture, but it’s crucial to understand the legal requirements that come with it. A common area of confusion for many new business owners is understanding the need for a Sales and Use Tax Permit, also known as aseller’s permit. This permit allows you to collect sales tax on taxable products and services from customers in West Virginia. This blog will guide you through each step of applying for a sales tax permit, with clear instructions to help you and your business begin collecting sales tax effortlessly.Related Topics:
How to Register for a Seller’s Permit in West Virginia?
When applying for a West Virginia sales tax permit, you can use the online application process on the West Virginia Department of Revenue website to complete your sales tax registration.
1. Where to Apply for a Seller’s Permit in West Virginia?
The first step to register for a sales tax permit online is to visit the West Virginia Tax Division Website. Here, you’ll find two relevant options under the “Register a Business” section:“Register online at the WV One Stop Business Portal” or “Remote Seller Registration.”For the purpose of this blog, we will focus on the “Remote Seller Registration” for out-of-state sellers with no physical presence in West Virginia. Once you click on “Remote Seller Registation,” you will be redirected to a dedicated page that will guide you through the registration process. Follow the prompts and provide the necessary information to complete your sales tax account registration. During your registration process, you will create an online login account with the state. Once your logon is created, you can manage your current sales tax account(s) and register for additional accounts related to your business.
2. What Information Do You Need to Get a Seller’s Permit in West Virginia?
To successfully acquire a seller’s permit in West Virginia, it’s important to prepare and provide specific information and documents. The following is a list of the necessary information and documents required to register a sales tax permit in West Virginia:
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 West Virginia (Nexus Start Date)
3. How Much are the Fees for Applying for and Renewing a Seller’s Permit in West Virginia?
Registering for a sales tax permit inWest Virginia costs $30. The state charges a non-refundable registration fee.West Virginiasales tax permitdoes not need to be renewed and remain valid for as long as the business exists without any changes in ownership or structure.Note:
Adding, removing, or changing members of a partnership, corporation, LLC, non-profit, or association does not require a new seller’s permit.
Anyone conducting business within this state must secure a seller’s permit but is exempt from the $30.00 Business Registration Fee if they meet one of the following conditions listed here.
4. What are Other Ways to Register for a Seller’s Permit in West Virginia?
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.
After you submit your online submission, you will see a confirmation page confirming that you have successfully signed up for MyTaxes. This page will also include your confirmation number to access your application request.If your sales tax application has been approved, within 24 – 48 hours, you should receive an email confirmation with an authorization code to use to log in to your MyTaxes account for the first time. You can see a copy of your sales tax permit and manage your sales tax account. The paper copy of your Sales Tax Permit should arrive at the mailing address you provided during your registration process in 7 to 10 business days. Obtaining a business registration certificate requires you to collect sales tax for eligible sales in West Virginia. The document will also specify your filing frequency for sales tax returns and due dates.Remember that if your business has a physical location in West Virginia, the Seller’s Permit must be visibly displayed at all timesat the place for which the certificate is issued.If you ever encounter any difficulties, have any questions, or prefer TaxHero to manage these tasks on your behalf, don’t hesitate to reach out! Contact us today. Starting a business in Wisconsin is an exciting venture, but it’s crucial to understand the legal requirements that come with it. A common area of confusion for many new business owners is understanding the need for a Seller’s Permit in Wisconsin, also known as a sales tax permit. This permit allows you to collect sales tax on taxable products and services from customers in Wisconsin. This blog will guide you through each step of applying for a sales tax permit, with clear instructions to help you and your business begin collecting sales tax effortlessly.Related Topics:
How to Register for a Seller’s Permit in Wisconsin?
When applying for a seller’s permit in Wisconsin, you can use the online application process on DOR Business Tax Online Registrationwebsite to complete your sales tax registration.
1. Where to Apply for a Seller’s Permit in Wisconsin?
The first step to register for a sales tax permit online is to go to the State Of Wisconsin Department of Revenue website and click on “Online Registration” found in the Business Registration, Permits, and Certificates section. You will then click “Register with Department of Revenue.”Under the business tax registration section, you will be prompted to indicate whether it is your first time registering a business. Following this, you will need to provide business information, including your ID type and ID number. You will then follow through the prompts that walk you through your registration process and provide the necessary information. Your registration is not complete until you receive a confirmation number.During your registration process, you will create an online login account with the state. Once your logon is created, you can manage your current sales tax account(s) and register for additional accounts related to your business.
2. What Information Do You Need to Get a Seller’s Permit in Wisconsin?
To successfully acquire a seller’s permit in Wisconsin, it’s important to prepare and provide specific information and documents. The following is a list of the necessary information and documents required to register a sales tax permit in Wisconsin:
Business Identification Information: Legal Business Name, Physical Address, Mailing Address
Business Entity Structure (i.e., Sole Proprietorship, Partnership, Subchapter S Corp., Corporation, LLC, etc.)
Federal Employer Identification Number (EIN or FEIN)
Name, Address, and SSN of Owners, Partners, or Officers
Business Activity Details: Date & State of Incorporation, Start Date with Wisconsin (Nexus Start Date), Estimated Monthly Sales in Wisconsin
3. How Much are the Fees for Applying for and Renewing a Seller’s Permit in Wisconsin?
Registering for a sales tax permit in Wisconsin requires you to pay a $20 Business Tax Registration (BTR) fee for you to get a Wisconsin seller’s permit. This is valid for two years. You are required to pay a $10 renewal fee by the end of this period.
4. What are Other Ways to Register for a Seller’s Permit in Wisconsin?
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.
Paper Application: You have the option to register via mail by completing the Application for Business Tax Registration, although it’s suggested by Wisconsin to register online instead.
What’s Next?
After you apply for your Seller’s Permit in Wisconsin, you should receive an email within 24 to 48 hours with an access code. Use this code, along with the username and password you made when signing up, to log in to your account.If you registered for your business tax online, you will get an email with your permit or certificate number in 1 to 2 business days. Your welcome packet will arrive at your mailing address within 5 to 7 days, including a greeting letter, certificates, permits, and a bill for any unpaid fees.Obtaining a seller’s permitrequires you to collect sales tax for eligible sales in Wisconsin. The document will also specify your filing frequency for sales tax returns and due dates.Remember that if your business has a physical location in Wisconsin, the Seller’s Permit must be visibly displayed at all timesat the place for which the certificate is issued.If you ever encounter any difficulties, have any questions, or prefer TaxHero to manage these tasks on your behalf, don’t hesitate to reach out! Contact us today. Starting a business in Mississippiis an exciting venture, but it’s crucial to understand the legal requirements that come with it. A common area of confusion for many new business owners is understanding the need for a Sales and Use Tax Permit, also known asa sales tax permit or seller’s permit. This permit allows you to collect sales tax on taxable products and services from customers in Mississippi.This blog will guide you through each step of applying for a sales tax permit, with clear instructions to help you and your business begin collecting sales tax effortlessly.Related Topics:
How to Register for a Seller’s Permit in Mississippi?
When applying for a sales tax permit in Mississippi, you can use the online application process on theMississippi Department of Revenuewebsite to complete your sales tax registration.
1. Where to Apply for a Seller’s Permit in Mississippi?
The first step to register for a sales tax permit online is to go to the Department of Revenue State of Mississippi TAP website, click on “Sign up” in the login section, and then click “Register a New Taxpayer” under the “Add New Account or Access” section.Fill in the drop-down and select your entity type. You will then follow through the prompts that walk you through your registration process and provide the necessary information.Please note that there will be a question asking you to select one of the following descriptions for your physical location. If you are an out-of-state/remote seller with no physical presence, you want to make sure to select “Out-of-State Retailer.”During your registration process, you will create an online login account with the state. Once your logon is created, you can manage your current sales tax account(s) and register for additional accounts related to your business.
2. What Information Do You Need to Get a Seller’s Permit in Mississippi?
To successfully acquire a seller’s permit in Mississippi, it’s important to prepare and provide specific information and documents. The following is a list of the necessary information and documents required to register a sales tax permit in Mississippi:
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
3. How Much are the Fees for Applying for and Renewing a Seller’s Permit in Mississippi?
Registering for a sales tax permit in Mississippi is free, and you won’t need to provide payment details to acquire your permit. Mississippisales tax permitdoes not need to be renewed and remains valid for as long as the business exists without any changes in ownership or structure.
4. What are Other Ways to Register for a Seller’s Permit in Mississippi?
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?
After submitting your sales tax application online, you’ll be directed to a confirmation page, which will give you a unique confirmation code. You should receive your Sales Tax Permit within 2 to 3 weeks at the mailing address provided during your registration process. Along with your permit, you will receive a packet containing all the information you need on how to file your taxes.Obtaining a sales tax permitrequires you to collect sales tax for eligible sales in Mississippi. The document will also specify your filing frequency for sales tax returns and due dates.If you ever encounter any difficulties, have any questions, or prefer TaxHero to manage these tasks on your behalf, don’t hesitate to reach out! Contact us today. Starting a business in Iowais an exciting venture, but it’s crucial to understand the legal requirements that come with it. A common area of confusion for many new business owners is understanding the need for a Sales and Use Tax Permit in Iowa, also known as a seller’s permit. This permit allows you to collect sales tax on taxable products and services from customers in Iowa.This blog will guide you through each step of applying for a sales tax permit, with clear instructions to help you and your business begin collecting sales tax effortlessly.Related Topics:
When applying for an Iowa Sales Tax Permit, you can use the online application process on the Iowa Department Of Revenuewebsite to complete your sales tax registration.
1. Where to Apply for a Seller’s Permit in Iowa?
The first step to register for a sales tax permit online is to go to GovConnectIowa website and click on the “Register a New Business” found in the Businesses section. To register for a seller’s permit, you will need to create an online user profile with a username and password. Click on the title “Login or create a GovConnectIowa account to register a new business.” then click on “Create Logon.” You will then follow through the prompts that walk you through your registration process and provide the necessary information. Make sure you select your sales and use tax filing options correctly.In case you don’t have a physical presence in Iowa, click no. In case your gross sales in Iowa are above $100,000, click yes.During your registration process, you will create an online login account with the state. Once your online user profile is created, you can start registering for a seller’s permit in Iowa.
2. What Information Do You Need to Get a Seller’s Permit in Iowa?
To successfully acquire a seller’s permit in Iowa, it’s important to prepare and provide specific information and documents. The following is a list of the necessary information and documents required to register a sales tax permit in Iowa:
Business Identification Information: Legal Business Name, Physical Address, Mailing Address
Business Entity Structure (i.e., Sole Proprietorship, Partnership, Subchapter S Corp., Sorporation, 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 Iowa (Nexus Start Date), Estimated Yearly Sales Tax Liability in Iowa
3. How Much are the Fees for Applying for and Renewing a Seller’s Permit in Iowa?
Registering for a sales tax permit in Iowa is free, and you won’t need to provide payment details to acquire your permit. The state charges a non-refundable registration fee.
Iowa sales tax permit does not need to be renewed and remains valid for as long as the business exists without any changes in ownership or structure.
4. What are Other Ways to Register for a Seller’s Permit in Iowa?
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.
Paper Application: You have the option to register via mail by completing Iowa Business Tax Permit Registration, 78-005. Although, it’s suggested by the state of Iowa that you register online instead.
What’s Next?
After your online submission, you will be redirected to a confirmation page to show your request has been submitted.Keep a copy of the printable view to serve as proof of your registration until you receive your permit in the mail.Take note that the waiting time for your account number, IDR ID, and instructions on how to file and pay taxes may take 1 business day to at least 6 weeks. If you want to access your permit letter electronically, you can view it under the View Letters section in your GovConnectIowa account.Obtaining a sales tax permit requires you to collect sales tax for eligible sales in Iowa. The document will also specify your filing frequency for sales tax returns and due dates.If you ever encounter any difficulties, have any questions, or prefer TaxHero to manage these tasks on your behalf, don’t hesitate to reach out! Contact us today. Starting a business in South Dakota is an exciting venture, but it’s crucial to understand the legal requirements that come with it. A common area of confusion for many new business owners is understanding the need for a Sales Tax License, also known as a sales tax permit or seller’s permit. This permit allows you to collect sales tax on taxable products and services from customers in South Dakota. This blog will guide you through each step of applying for a sales tax permit, with clear instructions to help you and your business begin collecting sales tax effortlessly.Related Topics:
How to Register for a Seller’s Permit in South Dakota?
When applying for a South Dakota Sales Tax Permit, you can use the online application process on theSouth Dakota Department of Revenue website to complete your sales tax registration.
1. Where to Apply for a Seller’s Permit in South Dakota?
There are two options to choose from when applying for a seller’s permit in South Dakota. To do either of these options, go to Tax License Application.Under the “Complete Your Application or Renewal” you will find three options:
OPTION 1 – Complete Without an Account: Click on this option if you want to complete and submit an application for a seller’s permit in South Dakota without creating an online user profile.
You will be led to another page where you will click on “Start New Application”
Then click on “Apply for Business Tax License”
OPTION 2 – Sign Up (Recommended Option): Click on this option if you want to apply for a seller’s permit in South Dakota, and simultaneously gain access to your future saved applications and renewals by creating an online user profile.
You will be led to another page where you will need to create an online user profile, with a username and a password.
Once this part is complete, click on “Apply for Business Tax License
Sign In: Click this option if you already have an account. But for the purpose of this guide, we will focus on Option 1 and Option 2.
Whether you choose Option 1 or Option 2, you will be led to the same page where you can fill up your South Dakota Tax Application. Start by choosing the right ownership type for your business. You will then need to select what business tax license you are applying for. Make sure to select “ST-Sales Tax” since you’re applying for a seller’s permit.You will then follow through the prompts that walk you through your registration process and provide the necessary information.Note: Qualifying remote sellers needed to get a sales tax permit with multiple states can register through the Streamlined Sales Tax Registration System.
2. What Information Do You Need to Get a Seller’s Permit in South Dakota?
To successfully acquire a seller’s permit in South Dakota, it’s important to prepare and provide specific information and documents. The following is a list of the necessary information and documents required to register a sales tax permit in South Dakota:
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 South Dakota (Nexus Start Date), Estimated Annual Taxable Sales in South Dakota
3. How Much are the Fees for Applying for and Renewing a Seller’s Permit in South Dakota?
Registering for a sales tax permit in South Dakota is free, and you won’t need to provide payment details to acquire your permit.South Dakotasales tax permitdoes not need to be renewed and remains valid for as long as the business exists without any changes in ownership or structure.
4. What are Other Ways to Register for a Seller’s Permit in South Dakota?
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?
After submitting your sales tax permit application, a representative from the South Dakota Department of Revenue will call you. They will verify the information you provided during the registration process and explain the applicable sales tax rates in South Dakota.Following this call, you will also receive an email, which will contain your account details, including your account number. With this information, you can access your South Dakota account on EPath.Within 7 to 10 business days of your application being approved and you receiving your confirmation email, you will receive the official paper copy of the South Dakota sales tax permit at the mailing address provided in your application. Obtaining a sales tax licenserequires you to collect sales tax for eligible sales in South Dakota. The document will also specify your filing frequency for sales tax returns and due dates.Remember that if your business has a physical location in South Dakota, the Seller’s Permit must be visibly displayed at all timesat the place for which the certificate is issued.If you ever encounter any difficulties, have any questions, or prefer TaxHero to manage these tasks on your behalf, don’t hesitate to reach out! Contact us today. Starting a business in Nebraskais an exciting venture, but it’s crucial to understand the legal requirements that come with it. A common area of confusion for many new business owners is understanding the need for a Sales Tax Permit in Nebraska, also known as a seller’s permit. This permit allows you to collect sales tax on taxable products and services from customers in Nebraska.This blog will guide you through each step of applying for a sales tax permit, with clear instructions to help you and your business begin collecting sales tax effortlessly.Related Topics:
How to Register for a Seller’s Permit in Nebraska?
When applying for a Sales Tax Permit in Nebraska, you can use the online application process on theNebraska Department of Revenue website to complete your sales tax registration.
1. Where to Apply for a Seller’s Permit in Nebraska?
The first step to register for a sales tax permit online is to go to Centurion login page and in the “Create User Account” section, type in the email address you want to use for the registration process and then click “Register New Account.”You will then follow through the prompts that walk you through your registration process and provide the necessary information. The registration process will begin with creating your online user profile with the state of Nebraska. Under the “Tax Categories” section, you will select “Sales Tax” for the tax type you are applying for. In the Sales Tax section of the application, you will also be asked if you have more than one licensed location. If you are an out-of-state/remote seller, you will select “No” for this question. If you have more than one physical retail location within Nebraska, you will select “Yes.”
2. What Information Do You Need to Get a Seller’s Permit in Nebraska?
To successfully acquire a seller’s permit in Nebraska, it’s important to prepare and provide specific information and documents. The following is a list of the necessary information and documentsrequired to register a sales tax permit in Nebraska:
Business Identification Information:Legal Business Name, Physical Address, Mailing Address
Business Entity Structure (i.e., Sole Proprietorship, Partnership, Subchapter S Corp., Corporation, LLC, etc.)
Federal Employer Identification Number (EIN or FEIN)
Name, Address, and SSN of Owners, Partners, or Officers
Business Activity Details: Date & State of Incorporation, Start Date with the State of Nebraska (Nexus Start Date), Estimated Yearly Sales Tax Liability, Month of Fiscal Year End, Accounting Method (Cash vs. Accrual)
3. How Much are the Fees for Applying for and Renewing a Seller’s Permit in Nebraska?
Registering for a sales tax permit in Nebraska is free, and you won’t need to provide payment details to acquire your permit. Nebraskasales tax permitsdo not need to be renewed and remain valid for as long as the business exists without any changes in ownership or structure.
4. What are Other Ways to Register for a Seller’s Permit in Nebraska?
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.
Paper Application: You can fill outNebraska Tax Application (Form 20), attach the necessary documents, and mail them to the address provided in the form.
What’s Next?
Once you’ve submitted your sales tax application online, you will be immediately directed to a page that shows whether your application has been approved or rejected. If your application has been approved, you will be provided with a Nebraska State ID Number, Personal Identification Number (PIN), and access to your sales tax permit.You can also save a copy of your sales tax permit as a PDF file or have the DOR print and mail you a copy.It is also important to print the page that confirms your application’s approval, as you will need the information to log in to your Nebraska account to file your sales tax return. Access your account by visiting NebFile for Business and logging in using the Nebraska State ID Number as the User ID and PIN provided on your confirmation page.Obtaining a sales tax permitrequires you to collect sales tax on eligible sales in Nebraska. Remember that if your business has a physical location in Nebraska, the Seller’s Permit must be visibly displayed at all timesat the place for which the certificate is issued.If you ever encounter any difficulties, have any questions, or prefer TaxHero to manage these tasks on your behalf, don’t hesitate to reach out! Contact us today. Starting a business in New Jersey is an exciting venture, but it’s crucial to understand the legal requirements that come with it. A common area of confusion for many new business owners is understanding the need for a Certificate of Authority in New Jersey, also known as a sales tax permit or seller’s permit. This permit allows you to collect sales tax on taxable products and services from customers in New Jersey and remit it to the state. This blog will guide you through each step of applying for a sales tax permit, with clear instructions to help you and your business begin collecting sales tax effortlessly.Related Topics:
How to Register for a Seller’s Permit in New Jersey?
When applying for a seller’s permit in New Jersey, you can use the online application process on the New Jersey Department Of Treasury website to complete your sales tax registration.
1. Where to Apply for a Seller’s Permit in New Jersey?
The first step to register for a sales tax permit online is to go to New Jersey’s Online Business Registrationwebsite and click the title “Get Started.”This will lead you to another page where the registration process begins. If you are a remote/out-of-state seller, you will select “Register as Remote Seller Only.” Alternatively, please choose another option that applies to you from the clickable selections provided.Go through all the prompts and answer all the corresponding questionnaires by filling them out with the information needed. Once you’ve completely filled out all sections, click on “Complete the Registration.”
2. What Information Do You Need To Get A Seller’s Permit in New Jersey?
To successfully acquire a seller’s permit in New Jersey, it’s important to prepare and provide specific information and documents. The following is a list of the necessary information and documents required to register a sales tax permit in New Jersey:
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 New Jersey (nexus start date)
3. How Much are the Fees for Applying for and Renewing a Seller’s Permit in New Jersey?
Registering for a sales tax permit in New Jersey is free, and you won’t need to provide payment details to acquire your permit. New Jersey sales tax permits do not need to be renewed and remain valid for as long as the business exists without any changes in ownership or structure.
4. What are Other Ways to Register for a Seller’s Permit in New Jersey?
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.
Paper Application: You will need to fill outForm NJ-REG(starting p. 17), attach the necessary documents, and mail them to the address provided in the form.
What’s Next?
After completing the online registration, you will see a confirmation screen that will give you an option to download your Certificate of Authority. Make sure to save and download this for your records.Expect to receive a confirmation email within 24-48 hours indicating that your permit request has been processed. Upon receiving this email, you can log in to your account to file and make payments by using your Taxpayer ID (for New Jersey, this is your FEIN with 000 added to the end) along with the official business name used during the application process. You won’t be able to see any previously filed returns or see your sales tax permit, but you will be able to file sales tax returns and make payments.In 7- 10 business days, you will receive a Welcome Letter to your mailing address provided. This will include a 4-digit PIN to login and access and file your returns and make payments for sales tax. Obtaining a Sales Tax Certificate requires you to collect sales tax for eligible sales in New Jersey. The document will also specify your filing frequency for sales tax returns and due dates.If you ever encounter any difficulties, have any questions, or prefer TaxHero to manage these tasks on your behalf, don’t hesitate to reach out! Contact us today. Starting a business in Ohio is an exciting venture, but it’s crucial to understand the legal requirements that come with it. A common area of confusion for many new business owners is understanding the need for a Vendor’s License in Ohio, also known as a seller’s permit or sales tax permit. This permit allows you to collect sales tax on taxable products and services from customers in Ohio and remit it to the state. This blog will guide you through each step of applying for a sales tax permit, with clear instructions to help you and your business begin collecting sales tax effortlessly.Related Topics:
When applying for a Seller’s Permit in Ohio, you can use the online application process on the Ohio Department of Taxation website to complete your sales tax registration.
1. Where can you Apply for a Seller’s Permit in Ohio?
The first step is to register your business at the Ohio Business Gateway. You will create an online login account with the Ohio Business Gateway during your registration process. Once that is created, you will then apply for a seller’s use tax license if you’re a remote or out-of-state seller. If you are a business with a physical presence in Ohio, you will apply for a vendor’s license.
2. What Information do you Need to Get a Seller’s Permit in Ohio?
To successfully acquire a seller’s permit in Ohio, it’s important to prepare and provide specific information and documents. The following is a list of the necessaryinformation and documents required to register a sales tax permit in Ohio:
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 Ohio (nexus start date), Estimated Monthly Sales Tax Liability in Ohio, Month of Fiscal Year End, Accounting Method (Cash vs. Accrual)
3. How Much are the Fees for Applying for and Renewing a Seller’s Permit in Ohio?
The registration fee for a sales tax permit in Ohio is $25 for in-state applicants. However, this fee is waived for out-of-state applicants, allowing them to register for free. The state charges a non-refundable registration fee.Ohio sales tax permits do not need to be renewed and remain valid for as long as the business exists without any changes in ownership or structure.
4. What Are Other Ways To Register For A Seller’s Permit In Ohio?
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.
Paper Application: You will need to fill out form Form ST-1for in-state sellers or Form UT-1000 for out-of-state sellers, attach the necessary documents, and mail it to the address provided on the form.
What’s Next?
Upon completing the application, you will be directed to a confirmation and receipt page. It’s important to click the link provided on this page to generate your registration letter, which will serve as your official Ohio permit. This document will include your account number and filing frequency details. Obtaining a vendor’s license requires you to collect sales tax for eligible sales in Ohio. The document will also specify your filing frequency for sales tax returns and due dates.Remember that if your business has a physical location in Ohio, the Seller’s Permit must be visibly displayed at all timesat the place for which the certificate is issued.If you ever encounter any difficulties, have any questions, or prefer TaxHero to manage these tasks on your behalf, don’t hesitate to reach out! Contact us today. Starting a business in Michigan is an exciting venture, but it’s crucial to understand the legal requirements that come with it. A common area of confusion for many new business owners is understanding the need for a sales tax license in Michigan, also known as a sales tax permit or seller’s permit. This allows you to collect sales tax on taxable products and services from customers in Michigan and remit it to the state. This blog will guide you through each step of applying for a sales tax permit, with clear instructions to help you and your business begin collecting sales tax effortlessly.Related Topics:
How to Register for a Seller’s Permit in Michigan?
When applying for a sales tax license in Michigan, you can use the online application process on the Michigan Department of Treasury’s website to complete your sales tax registration.
1. Where can you Apply for a Seller’s Permit in Michigan?
The first step is to register your business at the Michigan Treasury Online by clicking the title “Create My User Profile.” During your registration process, you will create an online login account with the State. Once your GTC logon is created, you can manage your current sales tax account(s) and register for additional accounts related to your business.
2. What Information do you Need to Get a Seller’s Permit in Georgia?
To successfully acquire a seller’s permit in Michigan, it’s important to prepare and provide specific information and documents. The following is a list of the necessary information and documents required to register a sales tax permit in Michigan:
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, Driver’s License and SSN of owners, partners, or officers
Business Activity Details: Date & State of Incorporation, start date with the state of Michigan (nexus start date), Estimated Monthly Sales Tax Liability in Michigan, Month of Fiscal Year End
3. How Much are the Fees for Applying for and Renewing a Seller’s Permit in Michigan?
Registering for a sales tax permit in Michigan is freeand you won’t need to provide payment details to acquire your permit. The state charges a non-refundable registration fee. Michigan sales tax permit is issued yearly and is valid from January to December of the tax year listed. It also needs to be renewed every year.
4. What Are Other Ways To Register For A Seller’s Permit In Michigan?
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.
If you submit your application online, you should receive your sales tax license within 10-15 minutes. If you do it via mail or in person, you will need to wait four to six weeks for processing. Obtaining a sales tax license requires you to collect sales tax for eligible sales in Michigan. The document will also specify your filing frequency for sales tax returns and due dates. Remember that if your business has a physical location in Michigan, the Seller’s Permit must be visibly displayed at all timesat the place for which the certificate is issued. If you ever encounter any difficulties, have any questions, or prefer TaxHero to manage these tasks on your behalf, don’t hesitate to reach out! Contact us today. Running a business anywhere in the US means you’ll eventually encounter the terms “Resale Exemptions” or “Resale Certificates.”Using these documents for your transactions may seem complicated at first, especially if you come from a state without sales tax or operate in one, like Oregon. In this blog, we will break down everything you need to know about Resale Exemptions or Resale Certificates. By the end of this guide, your business will understand how to handle purchases from vendors in other states that require a resale certificate, even though Oregon does not have a general sales and use tax. However, a business registered in Oregon can provide an Oregon Business Registry Resale Certificate to an out-of-state seller, which may be accepted as a substitute for a standard resale certificate.
Understanding Resale Certificates in Oregon: Dispelling the Confusion
Oregon’s Unique Tax Landscape: No Statewide Sales Tax
Oregon does not have a general statewide sales and use tax. Therefore, Oregon doesn’t issue a standard resale certificate or exemption certificate that exempts businesses from sales tax for in-state purchases.However, the state does have a specific form called the Oregon Business Registry Resale Certificate. Oregon-based businesses can use this for their out-of-state resale purchases.It’s important to note that an out-of-state vendor is not required to accept this certificate. Some states may require an Oregon business to use their state-specific form or provide additional information.With that said, the requirements for using resale certificates in other states vary depending on the state you’re dealing with. Despite the seemingly complicated process, learning the rules of using resale certificates for out-of-state transactions is valuable for Oregon businesses.
What Does a Resale Certificate Mean for Oregon Businesses?
Most Oregon-based businesses generally do not require resale certificates. The challenge arises only when purchasing goods for resale from vendors in a state that imposes a sales tax.Since Oregon has no sales tax, it does not issue a standard resale certificate or sales tax ID number. This creates a problem for Oregon businesses, as these documents are typically required when claiming sales tax exemptions in taxing states. Failing to provide the required paperwork results in being charged with sales and use tax in that state. To make a tax-exempt purchase, businesses must follow the specific resale exemption rules that the state’s Department of Revenue sets. This often involves presenting a different kind of document in place of a standard resale certificate, such as:
The Oregon Business Registry Resale Certificate (Form 150-800-002): This document is formally described by the Oregon Department of Revenue as a substitute for a standard resale certificate. However, its acceptance in taxing states is not guaranteed.
A Completed Multi-jurisdictional Resale Certificate Form: There are 2 common multi-jurisdictional forms that Oregon businesses can use.
Multistate Tax Commission (MTC) Uniform Sales & Use Tax Certificate
Streamlined Sales Tax (SST) Certificate of Exemption
State-specific Exemption Forms: Some states strictly require you to use their state-issued or state-approved exemption documents.
Additional Documents: Other states may need your Oregon business licenses to prove you are a legitimate company. In specific cases, your driver’s license number can also be accepted as a valid ID.
By presenting the correct documentation, Oregon businesses can purchase goods without paying sales tax, provided these goods are intended for resale to their customers in the normal course of their business. This process prevents the issue of double taxation.
Why Oregon Businesses Still Need to Understand Resale Exemptions
Out of 50 states in the US, only 5 do not have a statewide sales tax. As the majority of states impose sales tax, taking advantage of resale exemptions is highly valuable for most businesses.By understanding resale exemptions and how they work in out-of-state transactions, Oregon businesses can enjoy the following benefits:
Avoiding Sales Tax on Out-of-State Purchases: Protect profit margins when buying inventory/materials from suppliers located in sales-tax states.
Maintaining Smooth Vendor Relationships: Ensure seamless transactions with out-of-state suppliers who may initially be confused by Oregon’s no-sales-tax status.
Legal Compliance (Interstate): Prevent potential use tax liabilities that could arise if an out-of-state purchase isn’t properly documented as tax-exempt by the seller.
Streamlining Operations: Reduce administrative burden and confusion when dealing with varied vendor requirements.
Oregon resellers can often claim a sales tax exemption in many taxing states when buying goods for resale. To qualify, you must meet the state’s specific requirements. Since the Oregon Business Registry Resale Certificate may not be accepted in some states, you must submit alternative documentation. As stated in the previous section, taxing states can accept alternatives such as multi-jurisdictional forms. One of the most commonly accepted multi-jurisdictional forms is the Multistate Tax Commission (MTC) Uniform Sales & Use Tax Certificate. Many states accept this form as valid proof of exemption.You must properly complete this form and provide a copy to your vendor. In some cases, you may need to fill out a state-issued exemption form or one provided by the vendor. Presenting a valid resale certificate is one of the primary requirements to claim a sales tax resale exemption.
Resale Certificate vs. Business Registration: The Key Distinction
When using resale certificates, Oregon businesses might be asked if their business is registered or has a sales tax permit.Since Oregon has no sales tax, buyers may need clarity on what these terms or prerequisites specifically refer to.Here are the key differences between resale certificates, business registration, as well as sales tax permits.
Resale Certificates – These are legal documents used by qualified businesses to claim resale exemptions when purchasing taxable goods for resale. In many taxing states, the respective state departments generally issue this document to registered businesses with valid sales tax IDs. It’s standard practice for most states to require sales tax IDs from businesses when completing and using a resale certificate. Oregon businesses will not have a general sales tax ID for this purpose. These IDs are usually obtained after registering your business for a sales tax account in a taxing state.
Business Registrations – Following the statement above, “registering your business” generally includes applying for a sales tax ID or sales tax permit.Since Oregon has no sales tax, businesses only need to register for legal authority purposes and other state taxes. Those taxes typically refer to Vehicle Taxes or Corporate Activity Taxes (CAT).
This critical distinction clarifies that Oregon businesses won’t have the same documentation as businesses in a state with sales tax.In case your business is already registered in Oregon, you can use the Oregon Business Registry Resale Certificate (Form 150-800-002). This documentation serves as proof that your business is legitimate and authorized to operate in Oregon. If out-of-state vendors accept this form, obtaining a sales tax permit to use other resale certificates is no longer necessary (unless your business has a nexus in a taxing state).
Other Business Registrations in Oregon
Aside from a sales tax ID, Oregon businesses may be required to register for other standard permits in the state. After registration, you’ll obtain official records that can help prove your Oregon business’s legal standing.
When an out-of-state vendor requires proof of business registration, you may present these documents instead of a sales tax ID:
Local Licenses: Your business may be required to apply for specific licenses depending on the Oregon municipality you’re located in. Check Oregon’s license directory, with over 1,100 licenses, you must identify the right one your business needs.
Register for Tax Programs: Your business may be liable for other taxes in Oregon (e.g., Corporate Activity Tax, vehicle taxes). In this case, you must register your business to stay compliant with the Oregon tax laws.
Using Resale Certificates For Unregistered Oregon Businesses
When making tax-exempt purchases from an out-of-state vendor, Oregon businesses must comply with the tax rules of the vendor’s state. Typically, the rules involve providing a sales tax ID or a valid resale certificate.Since Oregon has no general sales tax, it cannot provide businesses with a sales tax ID. It only has the Oregon Business Registry Resale Certificate (Form 150-800-002), which isn’t guaranteed to be accepted in taxing states.To help navigate your out-of-state resale purchases, here are the common factors to familiarize yourself with as an Oregon business.
Acceptance Conditions Vary Per State: Some states accept the Multistate Tax Commission (MTC) Uniform Sales & Use Tax Certificate from non-sales-tax states. Meanwhile, others require different supporting documents.
Registration Requirements: In certain states, you must register with their tax department and obtain a valid sales tax permit before claiming a resale exemption. Often, this registration is only required if your business has sales tax nexus in that state.
Prepare Supporting Documents: Without a nexus, you’ll still be required to provide alternative documents to support your claim. You can complete a multijurisdictional form and state your business registration number or other government IDs (e.g., driver’s license).
NOTE: Before registering for a sales tax permit solely to use resale certificates, evaluate whether your business has a sales tax nexusin that state. A sales tax nexus exists when businesses have a significant presence within a state. This presence is primarily defined or based on specific thresholds set by the state. With this rule, Oregon businesses can create nexus by selling to customers in taxing states even without a physical location.Once you establish nexus and register for a sales tax permit, using resale certificates in that state becomes more straightforward. This allows you to claim exemptions more easily when purchasing goods for resale.Learn more here: Economic Nexus: Everything You Need to Know
How to Handle Resale Exemptions as an Oregon Business
For Purchases from Out-of-State Vendors
Out-of-state businesses purchasing goods for resale in Oregon generally do not need to use any resale certificate form. On the contrary, Oregon businesses typically must provide valid documentation to claim sales tax exemptions on taxable out-of-state resale purchases.
That’s because out-of-state vendors require proper documentation for the sale. This practice is done to prove why the seller did not collect sales tax on the transaction, protecting them from any potential sales tax liabilities.
Since Oregon has no sales tax IDs, businesses may consider the following options for their resale transactions in taxing states.
Utilize the Oregon Business Registry Resale Certificate
Oregon businesses can use the Oregon Business Registry Resale Certificate (Form 150-800-002). This form can be found and downloaded on the Oregon Department of Revenue webpage. Before presenting this document to out-of-state vendors, here’s what you need to know about this form:
Your Business Must Be Registered: Oregon businesses must be registered with the Oregon Secretary of State before completing this form. By being registered, you’re proving that your business is legally allowed to operate and complies with the Oregon government’s regulations.
Acceptance Conditions: Though the Oregon Business Registry Resale Certificate is a valid document, its acceptance is notguaranteed in other states. Each state has specific regulations when it comes to using or accepting out-of-state resale certificates.
Use Tax Liability: If you consume the goods you originally purchased for resale, you might become liable for use tax. In that case, you must pay the use tax to the state from which you purchased the taxable goods. Otherwise, you can be charged with penalties for misusing the Form 150-800-002.
Filing Not Required: You don’t need to send or file this form with the Oregon Department of Revenue. You’re only required to submit a properly completed copy of it to your supplier.
Prepare a Copy: Just like standard resale certificates, you must properly complete this form before submitting a copy of it to your vendors. Keep in mind that the burden of proof typically falls on you after a vendor accepts your resale certificate in good faith.You must ensure that any statement written on the form is valid and up to date.
NOTE: Using the Oregon Business Registry Resale Certificate (Form 150-800-002) is only a state-recommended option. It’s not meant to be your sole method for claiming resale exemption in taxing states. Prepare to provide other valid business documentation, as some states strictly require you to use their state-specific exemption forms.
Other Documentation to Provide
Oregon businesses without nexus in a taxing state don’t need a sales tax permit. However, they must give vendors valid documentation to claim an out-of-state sales tax exemption. The most commonly accepted option is the Multistate Tax Commission (MTC) Uniform Sales & Use Tax Certificate. This form can be used by businesses in states without a sales tax.In addition to the MTC certificate, vendors may also accept or require:
Your Federal Employer Identification Number (FEIN), Driver’s License number, VAT ID number, or other valid Oregon government IDs.
A copy of your Oregon business registration papers to prove you are a legitimate business.
Other properly completed multijurisdictional forms, such as the Streamlined Sales Tax (SST) Certificate of Exemption form.
A sales tax registration number from states where you have a nexus. This is generally mandatory to remain compliant with sales tax laws.
Some states let you write “Not Applicable” or “Not Required” in the sales tax ID field on the MTC certificate. However, you should always prioritize following the specific state’s instructions.While you can explain Oregon’s no-sales tax policy to the vendor, you still need formal documentation.Thus, you must ask in advance which forms they will accept to streamline future purchases.
What to Do if an Out-of-State Vendor Insists on a Sales Tax Permit
Encountering strict vendors that won’t recognize your resale certificate as properly completed without providing a sales tax permit is expected. That’s why you must also prepare to handle such situations.When out-of-state vendors insist that you provide a sales tax permit, here are your potential options:
Sales Tax Refund – Pay the sales tax upfront, then apply for a refund if the state allows it. Refund procedures vary by state. Some states, such as Washington, have a specific process for nonresident corporations to apply for a refund of sales tax paid on eligible purchases. Other states require contacting their tax department.
Utilize State Rules – Some states are accommodating for businesses without sales tax permits. These states typically accept multijurisdictional forms like the MTC form or the SST Certificate of Exemption.For example, on the exemption form for a state like South Dakota, you can often enter your FEIN or your Driver’s License number. You must also write a statement that you are an Oregon business not required to have a sales tax ID.You can use these state-specific rules to convince hesitant vendors that your resale certificate is valid even without a sales tax permit.
Voluntary Registration – Register for a sales tax ID in a taxing state if you plan frequent resale transactions there, even without nexus. In case you need help registering for a sales tax permit, you may read our guide or let TaxHero assist you.
Educate the Vendor – Not all vendors are aware that there are states without sales tax in the US. Thus, all you might need at times is to properly inform the vendor about Oregon’s unique regulations. Once the vendor understands the circumstances, they may reanalyze their decision about accepting your resale certificate as an Oregon business.
If nothing works, consider purchasing goods for resale from another state that offers more viable options for Oregon businesses.
For Purchases Within Oregon
Out-of-state businesses planning to make purchases for resale in Oregon may want to come prepared with a resale certificate.But since the state has no statewide sales tax, resale certificates are unnecessary. You won’t need a “sales tax exemption” in a state where sales tax does not apply. Therefore, businesses from outside Oregon do not need any resale certificates. As a state without a sales tax, most buyers can make sales tax-free purchases on most goods.However, this doesn’t exclude your purchase from other applicable taxes. Though there is no general sales tax in Oregon, the following tax types may be charged to you on your resale purchase:
Vehicle Taxes: Oregon has specific Vehicle Privilege and Use Taxes. A dealer purchasing a vehicle for resale is generally exempt from these taxes if they provide a resale certificate to the seller, but it’s important to verify the specific requirements.
Corporate Activity Tax (CAT): This is a tax on a business’s commercial activity in the state, which some businesses may choose to pass on to customers.
Food and Beverage Taxes: There is one place in Oregon that imposes a type of local sales tax. That place is Ashland City, located in Jackson County. This tax applies specifically to prepared food and beverages from restaurants and delis.Note that this is not a general sales tax.
Other Resale Exemptions in Oregon
There are certain Oregon businesses that can use or accept resale certificates to claim exemption from other taxes. Specifically, those taxes are the Corporate Activity Tax (CAT) and the Oregon Vehicle Taxes.
Wholesalers
The Oregon Corporate Activity Tax (CAT) is an annual tax on a business’s taxable commercial activity in Oregon that exceeds $1 million. It is not a sales tax.A common point of confusion arises when an Oregon business sells goods to a wholesaler in Oregon who will then resell those goods outside of Oregon. The receipts from this sale can be excluded from the Oregon seller’s commercial activity for CAT purposes.To qualify for this exclusion, the seller must receive certification from the Oregon wholesaler at the time of the sale. The property must also be resold outside of Oregon.The Oregon Department of Revenue provides guidance on the documentation a seller should keep to support this exclusion. As outlined in Oregon Administrative Rule 150-317-1400, valid certificates must include:
The wholesaler’s complete legal name and address in Oregon
The federal tax identification number of the Oregon wholesaler
Total amount of the purchased goods and date of the sale
The purchase price that the wholesaler paid
The exact dollar amount of the purchased goods that will be resold outside of Oregon
Signature of the wholesaler or any authorized representative
You can also use the state’s official sample resale certificateform as a reference.NOTE: This documentation is for the benefit of the Oregon seller to reduce their own CAT liability. It’s not a general exemption certificate for a sales tax exemption for the wholesaler purchasing taxable goods in taxing states. Out-of-state vendors may still request a separate resale certificate document to properly claim a sales tax exemption for the Oregon wholesaler. Sellers are instructed to keep copies (for an indefinite period) in case the Oregon Department of Revenue requests them. Wholesalers should also keep records of any resale certificates they provide to sellers to validate their CAT exemption claim.For additional guidance, refer to Oregon’s official publication “Excludable sales to wholesalers.”
Vehicle Dealers
In Oregon, a Vehicle Privilege Tax is imposed on dealers for the privilege of selling new and used vehicles. A separate Vehicle Use Tax is imposed on taxable vehicles purchased from out-of-state dealers for use in Oregon.When purchasing a taxable vehicle for resale, you can provide the Oregon vehicle dealer with a valid resale certificate to exempt the transaction.This relieves the dealer from their obligation to pay the privilege tax on that sale. This is a crucial step to ensure a tax-exempt purchase for your business. A valid Oregon motor vehicle resale certificate must meet specific information as outlined in the Oregon Administrative Rules. Under OAR 150-320-0420, the documentation should include:
Vehicle ownership transfer date
Vehicle description and identification number (VIN)
Vehicle serial number or other involved ID numbers
Year, make, and model of the purchased vehicle
The buyer and seller’s name, address, FEIN, and dealer license number
A signed statement certifying the transaction is clearly intended “for resale”
For out-of-state buyers purchasing vehicles in Oregon: Presenting a valid resale certificate to the Oregon vehicle dealer exempts the transaction from the state’s Vehicle Privilege Tax.Both the buyer and seller must retain these records indefinitely. This is done in case the Oregon Department of Revenue requests proof of why vehicle taxes were not collected.For additional guidance, refer to ORS 320.425 “Exempt sales”
Multi-Jurisdictional Resale Certificates: Tools for Out-of-State Purchases
Oregon businesses purchasing goods for resale in other states can utilize multijurisdictional forms.A multi-jurisdictional resale certificate standardizes the process and simplifies tax-exempt purchases for businesses that operate and buy goods for resale across state lines.
Unlike a standard resale certificate issued by a single state, a multi-jurisdictional certificateseeks recognition and acceptance by multiple states as valid proof that the goods being purchased are for resale and exempt from sales tax at the time of purchase.
However, it’s crucial to understand that not all states accept these certificates.Below are the 2 commonly used multi-jurisdictional resale certificate forms Oregon businesses can use:
Uniform Sales & Use Tax Resale Certificate – Multijurisdiction Form
This is a widely recognized form accepted by a significant number of states (though not all). As a state without a sales tax, Oregon is naturally not part of the listed states on this form.As indicated on the form, the rules and instructions for each state may vary. Here are essential factors to get you started when using the Uniform Sales & Use Tax Certificate:
Some states may allow you to submit this form to their vendors even without a sales tax registration number.
The form itself notes that requirements vary by state. In some cases, you can submit it to a vendor without having a sales tax registration number. Meanwhile, other states strictly require a sales tax ID number.
Describe your business and specify the tangible goods being purchased for resale. You must certify that the purpose of the transaction is solely for reselling the goods and not for personal usage.
In the sales tax ID field, write “Not Applicable” or “Not Required” to indicate that Oregon doesn’t issue such numbers. Keep in mind that not all states may accept this as a valid alternative.
It’s highly recommended to provide your Federal Employer Identification Number (FEIN) or other valid business details.
Whether the form is accepted depends on the specific state’s rules. Some states allow writing “Not Applicable” in the field asking for a sales tax ID. Others require you to provide additional supporting documents to prove your business’s validity.
Keep in mind that acceptance is not guaranteed and can be strictly conditional. Certain states may reject your MTC form even if it is properly completed.
Streamlined Sales Tax (SST) Certificate of Exemption
The Streamlined Sales Tax Governing Board website (SSTGB) is an organization aiming to simplify the sales tax process for businesses across states. Currently, there are 24 full member states in the organization.Similar to the MTC form, Oregon is naturally not a member of the SSTGB. However, the SSTGB’s efforts to streamline sales tax also provide benefits to Oregon businesses.Under specific circumstances, even businesses without a sales tax ID in other states can still use the Streamlined Sales Tax (SST) Certificate of Exemption. This form is highly accommodating for various types of businesses, including Oregon businesses and foreign buyers.However, your usage of the SST Certificate of Exemption still depends on the state you’re engaged with. Based on the form’s official instructions, here’s what you might need to do:
Clarify your claim – Since the form can be used by non-business organizations, specifying the intent of your purchase is required. Choose “Resale” as the exemption reason.
Provide your FEIN – Without a sales tax ID, you’ll need to enter eligible supporting documents. In most cases, using your Federal Employer Identification Number (FEIN) is acceptable under the SST guidelines.
Additional documents – Prepare to provide additional documents if asked, such as your business ID, business license, or even a driver’s license.
Register for a sales tax ID – If your business has a nexus in a state that collects sales tax, this step becomes mandatory. Once your ID number is available, you must indicate it on the SST Certificate of Exemption form.
To ensure your form is properly completed, read the “Purchaser’s Instructions” on the form thoroughly. However, despite completing the SST Certificate of Exemption, beware that vendors in non-member states are not guaranteed to accept it. Therefore, using this exemption certificate should not be a primary method for Oregon-based businesses.
Responsibilities When Claiming Resale Exemptions
Buyer Responsibilities for Oregon Businesses
Oregon businesses purchasing goods for resale in taxing states must fulfill specific responsibilities as the buyer. Depending on the state, these obligations may vary. Below are the common duties you must comply with as a buyer when claiming sales tax exemption on resale transactions:
State-specific Forms: Some states require their exemption certificate and won’t accept a multi-jurisdictional form. Always check the specific form each state requires.
Complete the Form: Follow the state’s detailed instructions carefully when completing exemption forms to avoid missing important steps.
Provide Accurate Information: Since vendors rely on your claim in good faith, you’re responsible for ensuring all business information on the form is correct.
Sales Tax Liabilities: Understand the sales and use tax obligations in the states where you do business to avoid non-compliance penalties.
Verify the Exemption: Check each state’s rules before claiming an exemption, as qualifying goods or services can vary from state to state.
Beware of Penalties: Claiming an exemption for resale but using the goods personally can result in penalties defined by the state.
Report Use Tax: If you consume goods originally bought for resale, you must report and pay use tax in states that require it.
Register Your Business (If Nexus is Established): If you have nexus in a state, you must register for a sales tax ID and obtain the necessary permits before making exempt purchases.
Seller Responsibilities for Oregon Businesses (When Selling to Out-of-State Buyers)
Since Oregon has no sales tax, sellers generally don’t need to collect or remit sales tax from any buyers. This rule applies regardless of your resale status or location, as long as the rules source the sale in Oregon. Therefore, as an Oregon business, your only responsibilities when selling to out-of-state buyers are:
Explain the State’s No-Sales-Tax Practice: Not all buyers are aware that there are states without sales tax. When buyers claim resale exemptions on their purchase, educating them about Oregon’s no-sales tax nature is your duty.
Inform About Other Taxes: Out-of-state buyers may expect a 100% tax-free transaction when buying goods in Oregon. While the state has no sales tax, other taxes still apply to qualified taxable transactions (e.g., vehicle taxes, CAT).
Pay Attention to your Nexus: If you’re a remote seller selling taxable goods in other states, you must be wary of your nexus status. When a business establishes nexus in a taxing state, it generally must register its business. Even if you come from a state without sales tax, having a sufficient economic presence can override your home state’s taxing rule.
Frequently Asked Questions About the Oregon Resale Exemptions
Are There Penalties for Misusing Exemption Documentation?
Misusing exemption documents can result in serious penalties, both in Oregon and in other taxing states.In Oregon, there are no general sales tax penalties. However, there can be severe consequences for misusing documentation related to other taxes, such as the Corporate Activity Tax or vehicle taxes. Depending on the offense, a business could face penalties for fraud, falsifying business records, or other state-level crimes. In other taxing states, misusing exemption documents generally results in a variety of penalties. Depending on the state and the committed offense, businesses may face one or more of the following penalties:
Pay the due tax with potentially added charges
Pay a set amount of additional fines with extra interest rates
Tax audits or assessments resulting in fines or imprisonment (if applicable)
Revocation of sales tax licenses, business permits, or other government-issued documentation
If you wish to learn about a certain state’s penalties, you can check our other state-dedicated resale certificate guides. Alternatively, you can also visit that specific state’s tax website.The Oregon Business Registry states that businesses can be liable for use tax in other states. This means if you consume the goods you intended to resell, you must pay the use tax instead.Failing to pay a taxing state’s use tax after claiming an exemption through a resale certificate could lead to any of the penalties listed above. Learn more about general penalties through our blog: Sales Tax Penalties and How to Avoid Them
Does the Oregon Business Registry Resale Certificate Expire?
The Oregon Business Registry Resale Certificate (Form 150-800-002) itself has no specified expiration date. However, its validity depends on your business’s registration status with Oregon’s Secretary of State. Since there are different types of business licenses in Oregon, the renewal requirement varies. Oregon sends a notice of renewal within 45 days before the renewal due date. Note that you may need to pay renewal fees and update the necessary information about your business.If your business’s registration becomes invalid, then your Form 150-800-002 is no longer usable. For instructions on how to renew your business, visit the Oregon Secretary of State “Renewal Help” webpage.
How Do I Verify an Oregon Business’s Exemption Claim (As an Out-of-State Seller)?
To verify an Oregon business’s exemption claim, follow these steps:
In the new page, select “Find a Business” under the “Your Business” category
Enter the Oregon buyer’s business name or Business Registry Number
In case you need additional assistance, you may contact the Oregon Department of Revenue at 503-378-4988 or 800-356-4222. You can also send an email to Questions.dor@dor.oregon.gov.
How TaxHero Can Help
You can manage sales tax compliance and resale certificates in Oregon without complications. TaxHero simplifies the process by keeping you well-informed and ensuring you use resale certificates correctly outside of Oregon.Save time. Avoid penalties. Stay compliant.Schedule a Demo to see how TaxHero can streamline your Oregon resale certificate today!
If you run an Ecommerce or CPG business in California, securing a California Resale Certificate is a smart move to protect your margins and streamline operations.
This certificate allows you to purchase inventory and raw materials tax-free, helping you lower upfront costs, stay competitive in pricing, and remain compliant with California sales tax laws.
Understanding Resale Certificates in California
What is a California Resale Certificate?
In California, the California Department of Tax and Fee Administration (CDTFA) issues the California Resale Certificate that allows businesses to:
Purchase goods without paying sales tax, provided the buyer plans to resell the goods to their customers in the normal course of their business.
Make tax-exempt purchases of inventory and materials that will become part of the products they sell by presenting a valid resale certificate to their suppliers.
The resale certificate helps avoid double taxation, once at wholesale and again at the point of retail sale.
However, this exemption applies only to inventory purchases intended for resale. Businesses must still collect and remit sales tax on sales made to end consumers.
Why do you need a California Resale Certificate?
Obtaining a resale certificate in California offers several significant advantages for businesses that purchase goods for resale.
Here are some key benefits:
Avoid Paying Sales Tax on Inventory: When you purchase inventory for resale, presenting a resale certificate lets you skip paying California 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 California sales tax laws and avoids potential audits or penalties.
When completing the form, purchasers must include their California seller’s permit number that the CDTFA issued, which verifies they are registered to collect and report sales tax on taxable transactions.
Resale Certificate vs. Sales Tax Permit: What’s the Difference?
A California Sales Tax Permit authorizes your business to collect and remit sales tax on taxable sales to customers. A California Resale Certificate (Form CDTFA-230), on the other hand, is a document that lets your business purchase goods tax-free from suppliers, as long as those goods are intended for resale. You must hold a valid and active sales tax permit before issuing a resale certificate.
Who Can Use a Resale Certificate in California?
Businesses that purchase goods for resale can use a California Resale Certificate. To do so, the business must actively sell taxable tangible products and hold a valid California Sales Tax Permit.
How to Get a Resale Certificate in California: A Step-by-Step Guide
Getting a resale certificate in California is simple, but you’ll need to meet a few key requirements first. Here’s how to do it:
1. Make Sure You’re Eligible: Your business must sell taxable tangible goods and register with the California Department of Tax and Fee Administration (CDTFA). Only businesses with a valid California Seller’s Permit can issue or use a resale certificate.
2. Get a California Sales Tax Permit: If you don’t already have one, you can apply for a California Seller’s Permit through the CDTFA Online Services Portal. You must complete this step before you can issue resale certificates.
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, Driver’s License, and SSN of owners, partners, or officers
Business Activity Details: Date & State of Incorporation, start date with the state of California (nexus start date), Estimated Monthly Sales in California
Names and locations of banks where you have an account
Names and addresses of suppliers
Name and address of bookkeeper or accountant
Name and address of personal references
If you have purchased an existing business, you must also provide the previous permit information
4. Complete CDTFA-230 General Resale Certificate: You can download the California General Resale Certificate (CDTFA-230) from the CDTFA’s website and fill it out. This is the official resale certificate form you’ll present to suppliers to make tax-exempt purchases.
5. Submission: In California, you do not submit the resale certificate to the CDTFA. Instead, give the completed certificate directly to your vendor or supplier when making a tax-exempt purchase for resale.
6. Pay Any Applicable Fees: There’s no fee to use the resale certificate (Form CDTFA-230). However, your California Seller’s Permit may have registration requirements depending on your business type. Learn more in our guide on Sales Tax Permit fees. To see if there’s a cost for the permit, check out our guide on Sales Tax Permit fees.
7. Understand Renewal Requirements: California resale certificates don’t have a formal expiration date, but they remain valid only while your Seller’s Permit is active and in good standing. Vendors may ask for updated certificates periodically, especially if they suspect any changes in your business’s registration.
How to Use a Resale Certificate in California
To properly use your resale certificate in California for tax-exempt purchases, you must present a completed California General Resale Certificate (Form CDTFA-230) to your supplier at the time of purchase. This certificate serves as your documentation that the items you’re buying are intended for resale in the regular course of business.
To be valid, your certificate must include all of the following information:
Name and address of the purchaser
California Seller’s Permit number (or reason why the purchaser doesn’t have one)
Description of the property being purchased for resale
A clear statement that the property is being purchased for resale
Date of execution
Signature of the purchaser or an authorized representative
California does not accept resale certificates issued by other states. If you are an out-of-state buyer wishing to make purchases for resale within California, you must register for a California Seller’s Permit and use a California resale certificate when purchasing from California vendors.
While California requires resale certificates to be accepted in good faith, this only applies to California-issued resale certificates. As a seller, if you’re given a resale certificate, ensure that:
The buyer provides their valid California Seller’s Permit number
The described goods match the buyer’s business type (e.g., a toy retailer buying electronics may raise red flags)
You retain the certificate as proof of why sales tax was not collected
A multi-jurisdictional resale certificate is a standardized form designed to simplify tax-exempt purchases for businesses that operate and make purchases for resale across state lines.
Unlike a standard resale certificate issued by a single state, a multi-jurisdictional certificate aims to be recognized and accepted by multiple states as valid proof that the goods being purchased are intended for resale and are therefore exempt from sales tax at the time of purchase.
However, it’s crucial to understand that not all states accept these multi-state forms, and acceptance can come with specific conditions.
In California, here are the main multi-jurisdictional resale certificates and how they apply:
Uniform Sales & Use Tax Resale Certificate – Multijurisdiction Form: This form is issued by the Multistate Tax Commission (MTC) website and is accepted by many U.S. states. For a California vendor to accept this certificate for a purchase made in California, the buyer must generally provide a valid California Seller’s Permit number. While the form has a space for an “out-of-state” registration number, simply entering an out-of-state permit number is typically not sufficient for a purchase that would otherwise be subject to California sales tax. California’s rules for resale certificates prioritize the buyer’s registration within California.
Streamlined Sales Tax (SST) Certificate of Exemption: California is not a member of the Streamlined Sales Tax Governing Board website. Therefore, while some vendors may accept the SST certificate at their discretion, California generally requires the CDTFA-230 resale certificate or the Uniform MTC form.
Businesses need to verify whether California accepts these multi-jurisdictional certificates and if there are any specific requirements or limitations on their use within the state. This is to avoid any audit issues.
Responsibilities When Using or Accepting a California Resale Certificate
Buyer Responsibilities
If you’re using a California resale certificate (Form CDTFA-230), it’s your responsibility to ensure it’s used only for purchases of tangible goods that you intend to resell in the regular course of business. Using it for personal consumption or business operations (such as office supplies, equipment, or giveaways) is illegal and may result in significant penalties.
California-based buyers: If you’re registered in California, you must provide your valid California Seller’s Permit number on the resale certificate. The CDTFA also requires that you clearly identify the items purchased for resale. If your business sells both taxable and exempt items, or resells and consumes items, you must ensure the correct classification on each transaction.
Out-of-state buyers: If you’re based outside California but purchasing from California vendors, you must either:
Hold a valid California Seller’s Permit and include it on the resale certificate, or
Clearly state on the certificate why you’re not required to hold one.
California does not automatically accept out-of-state resale certificates. Without a California Seller’s Permit or proper justification, the state may also require the vendor to charge sales tax.
Seller Responsibilities
As a seller in California, accepting a resale certificate comes with the responsibility of verifying and retaining proper documentation for tax-exempt sales. Also, you must:
Accept the certificate in good faith
Ensure it includes all required information: buyer’s name, address, sales tax permit number (or equivalent), reason for exemption, and signature
Reject the certificate if the items aren’t for resale (e.g., personal or business use)
Keep records for at least 4 years:Your properly completed resale certificate proves why you didn’t collect sales tax. If auditors review your business, keep all records for the audit period until it ends, even beyond four years.
Frequently Asked Questions About the California Resale Certificate
Are There Penalties for Misusing a California Resale Certificate?
Yes. Misusing a resale certificate, such as using it for personal items or non-resale purposes, is illegal in California. Penalties include:
Owing the full amount of tax due, plus interest
A 10% penalty or $500 (whichever is greater) per violation
Potential misdemeanor charges under Revenue and Taxation Code §6094.5, punishable by a fine of $1,000 to $5,000 and/or up to one year in county jail
Does a California Resale Certificate Expire?
The California General Resale Certificate (Form CDTFA-230) does not have a set expiration date. However, it is only valid while the purchaser’s California Seller’s Permit is active and in good standing. If the state revokes, cancels, or inactivates the permit, the certificate becomes invalid.
How Do I Verify a Resale Certificate in California?
To confirm that a buyer’s resale certificate is valid:
Request a completed Form CDTFA-230 (California General Resale Certificate) from the buyer.
Look for their California Seller’s Permit number on the form.
You don’t have to complicate managing sales tax compliance and resale certificates in California. TaxHero simplifies the process, from keeping your California Sales Tax Permit active to ensuring you use resale certificates correctly.
Save time. Avoid penalties. Stay compliant.
Schedule a Demo to see how TaxHero can streamline your resale certificate in California process today!
If you run an Ecommerce or CPG business in Nevada, securing a Nevada Resale Certificate is a smart move to protect your margins and streamline operations.
This certificate enables you to purchase inventory and raw materials tax-free, thereby reducing upfront costs, maintaining competitive pricing, and ensuring compliance with Nevada sales tax laws.
Understanding Resale Certificates in Nevada
What is a Nevada Resale Certificate?
In Nevada, a TAX-F005 Resale Certificate is a document issued by the Nevada Department of Taxation that allows businesses to:
Purchase goods without paying sales tax if they intend to resell them in the normal course of 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 must collect and remit sales tax on taxable sales to end consumers.
Why do you need a Resale Certificate in Nevada?
Obtaining a resale certificate in Nevada 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 the ability to purchase inventory and materials tax-free that will be resold to customers. This helps businesses preserve cash flow and reduce upfront costs.
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 Nevada 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 Nevada’s sales tax laws and regulations to avoid penalties.
In Nevada, the specific form required for a resale certificate is the TAX-F005.
The purchaser must include their Nevada Taxpayer ID Number on Form TAX-F005 to confirm registration with the Nevada Department of Taxation and authorization for tax-exempt resale purchases.
Resale Certificate vs. Sales Tax Permit: What’s the Difference?
A Nevada Sales Tax Permit authorizes your business to collect and remit sales tax on taxable sales to customers. On the other hand, you can use a Nevada Resale Certificate to buy goods tax-free from suppliers if you plan to resell them. To use a resale certificate, you must have an active sales tax permit.
Who Can Use a Resale Certificate in Nevada?
Businesses that purchase goods for resale can use a Nevada Resale Certificate. To do so, the business must actively sell taxable tangible products and hold a valid Nevada Sales Tax Permit.
How to Get a Resale Certificate in Nevada: A Step-by-Step Guide
Getting a resale certificate in Nevada is simple, but you’ll need to meet a few key requirements first. Here’s how to do it:
1. Make Sure You’re Eligible:Your business must sell taxable goods or services and be registered with the Nevada Department of Taxation. Only businesses with a valid Nevada Sales Tax Permit can issue or use a resale certificate.
2. Get a Nevada Sales Tax Permit: If you don’t already have one, apply for a Nevada Sales and Use Tax Permit through the Nevada Department of Taxation. You must obtain this permit before you can legally issue or use a resale certificate.
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)
Nevada Business ID
Name, Address, and SSN of owners, partners, or officers
Business Activity Details: Date & State of Incorporation, start date with the state of Nevada (nexus start date), Month of Fiscal Year End, Number of Employees in Nevada (if applicable), Estimated Monthly Taxable Sales
4. Complete Form TAX-F005:Download and fill out the Nevada Resale Certificate – Form TAX-F005 from the Nevada Department of Taxation’s website. You’ll present this completed form to suppliers when making tax-exempt purchases.
5. Submission:No submission required in Nevada. You don’t submit the resale certificate to the state. Instead, give the completed form directly to your suppliers when buying items for resale.
6. Pay Any Applicable Fees:There is no fee to use Form TAX-F005. However, you must maintain a valid Nevada Sales Tax Permit, which may have associated fees or renewal requirements. To see if there’s a cost for the permit, check out our guide on Sales Tax permit fees.
7. Understand Renewal Requirements:Your Nevada resale certificate remains valid only as long as your Sales Tax Permit is active and in good standing. You must renew your Sales Tax Permit as required by the Nevada Department of Taxation to continue making tax-exempt purchases.
How to Use a Resale Certificate in Nevada
To properly utilize your resale certificate in Nevada when making tax-exempt purchases for resale, you’ll need to present a completed copy of Nevada Form TAX-F005 to your supplier at the time of purchase.
Nevada does accept resale certificates issued by other states. To make tax-exempt purchases in Nevada, out-of-state businesses may present their home state’s resale certificate, as long as it includes all required details (buyer & seller info, description of goods, and a valid resale or sales tax permit number). Nevada vendors may accept these certificates in good faith without requiring Form TAX‑F005.
However, there are a few important guidelines:
Good Faith Acceptance: Vendors in Nevada must accept the resale certificate in good faith, meaning the form must be properly completed, include a valid Nevada sales tax number, and describe the goods being purchased for resale. If the certificate is incomplete or the sale doesn’t appear legitimate, vendors are not required to honor it.
Reciprocity: Nevada recognizes resale certificates issued by other states. If you’re an out‑of‑state business purchasing from a Nevada vendor, you can use your home‑state resale certificate, provided it includes all required details (such as purchaser and seller names, description of items for resale, and a valid seller’s permit number).
If you are an out-of-state business purchasing from a vendor in Nevada, you may present your home state’s resale certificate, as long as it includes all required information (such as buyer and seller details, a valid sales tax permit number, and a description of the goods for resale).
If your certificate meets these conditions, you don’t need to register for a Nevada Sales Tax Permit or use Form TAX-F005. However, if your resale certificate is incomplete or not accepted in good faith by the vendor, they are legally required to collect Nevada sales tax at the point of sale.
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.
There are two primary types of multi-jurisdictional resale certificates that a business operating in or selling to vendors in Nevada might encounter:
Uniform Sales & Use Tax Resale Certificate – Multijurisdiction Form: Nevada accepts the MTC Uniform Sales & Use Tax Resale Certificate when it is properly completed, used in good faith, and includes the buyer’s valid Nevada Sales Tax Permit number. Vendors may accept this form as valid proof that a purchase is for resale, provided the form complies with Nevada Revised Statutes NRS 372.165–.180 and NRS 372.235–.245.
Streamlined Sales Tax (SST) Certificate of Exemption: Nevada is a full member of the Streamlined Sales Tax Governing Board as of April 1, 2008. As such, it accepts the SST Certificate of Exemption for qualifying resale purchases. This certificate must also be properly completed and may require the buyer’s Nevada seller’s permit number. Businesses using either certificate must ensure they meet all Nevada-specific requirements. Improper use or incomplete documentation can result in tax liability upon audit.
Businesses need to verify whether Nevada accepts these multi-jurisdictional certificates and if there are any specific requirements or limitations on their use within the state. This is to avoid any audit issues.
Responsibilities When Using or Accepting a Resale Certificate in Nevada
Buyer Responsibilities
If you’re using a Nevada resale certificate, you’re responsible for ensuring it’s used only for purchases of goods or services you intend to resell. Using it for personal or operational items (like office supplies or equipment) is illegal and may lead to penalties.
Nevada-based buyers:
Must hold a valid Nevada seller’s permit to issue the certificate
Must complete the certificate fully (name, address, permit number, description of goods, signature, and date)
If the purchaser later uses the property for purposes other than resale (e.g., demonstration or business use), they become liable for use tax.
The state considers misuse of the certificate (e.g., fraudulent intent) a misdemeanor under NRS 372.175
Out-of-state buyers:
Nevada accepts out-of-state resale certificates if they meet the required format (buyer/seller info, description, permit number).
The certificate must contain the seller’s Nevada permit or equivalent if the seller is required to hold one
Seller Responsibilities
As a seller in Nevada, accepting a resale certificate comes with the responsibility of verifying and retaining proper documentation for tax-exempt sales. You must:
Sellers must ensure the purchaser is using it for bona fide resale and not for personal use or consumption
Ensure it includes all required information: buyer’s name, address, sales tax permit number (or equivalent), description of goods for resale, signature (if paper), and date. You may submit certificates electronically. Blanket certificates are acceptable if you complete them properly.
Reject the certificate if the items aren’t for resale (e.g., personal or business use). If the purchaser uses the goods for non-resale purposes, they become liable for Nevada use tax, and if the seller knowingly accepts a fraudulent certificate, the seller may also be liable.
Keep records for at least 4 years: A properly completed resale certificate is your official proof of why sales tax wasn’t collected. Nevada law requires sellers to keep tax records for 4 years, or 8 years if they’re unregistered.
Frequently Asked Questions About the Nevada Resale Certificate
Are There Penalties for Misusing a Nevada Resale Certificate?
Yes. Improper use of this certificate, such as using it for personal or non-resale purchases, is a misdemeanor offense under NRS 372.175. While Nevada doesn’t list fixed penalty amounts, violations may result in fines, interest, and possible criminal charges. Misuse can also lead to revocation of your seller’s permit and audit assessments.
Does a Nevada Resale Certificate Expire?
The resale certificate in Nevada does not have a set expiration date. It remains valid as long as the associated Nevada Sales and Use Tax Permit is active and in good standing. If the state revokes, suspends, or closes your permit, your resale certificate becomes invalid.
How Do I Verify a Resale Certificate in Nevada?
If you’re a seller in Nevada, you can verify a buyer’s resale certificate by:
Requesting a completed Form TAX-F005 from the buyer.
Ensuring the buyer provides a valid Nevada Sales Tax Permit number
Verifying the permit status through the Nevada Department of Taxation’s system
Proper verification helps protect your business during audits and ensures compliance with Nevada sales tax law.
How TaxHero Can Help
Managing sales tax compliance and resale certificates in Nevada doesn’t have to be complicated. TaxHero simplifies the process—from keeping your Nevada Sales Tax Permit active to ensuring you use resale certificates correctly.
Save time. Avoid penalties. Stay compliant.
Schedule a Demo to see how TaxHero can streamline your resale certificate in Nevada process today!
Starting a business in Colorado is an exciting venture, but it’s crucial to understand the legal requirements that come with it. A common area of confusion for many new business owners is understanding the need for a Sales Tax License in Colorado, also known as a sales tax permit or seller’s permit. This permit allows you to collect sales tax on taxable products and services from customers in Colorado and remit it to the state. This blog will guide you through each step of applying for a sales tax permit, with clear instructions to help you and your business begin collecting sales tax effortlessly.Related Topics:
It is important to understand that Colorado is a home-rule state. This means that many of its cities and counties have the authority to set their own sales tax rates and regulations independently of the state’s rules. As of January 1, 2024, Colorado has a total of 66 home-rule cities and two home-rule counties (Denver County and Bloomfield County), which means businesses operating in multiple home-rule jurisdictions within the state might find it challenging to work around these regulations. Colorado simplified sales tax permit regulations for remote sellers. Previously, businesses without a physical presence had to obtain separate licenses in each of Colorado’s home-rule cities. From July 1, 2022, these businesses can register statewide, avoiding the need for multiple local licenses with full effect on July 1, 2023.
How to Register for a Seller’s Permit in Colorado?
When applying for a sales tax license in Colorado, you can use the online application process on the Colorado Department of Revenue’s (CDOR) website to complete your sales tax registration.
1. Where to Apply for a Seller’s Permit in Colorado?
The first step to register for a sales tax permit online is to go to CO Revenue Online and navigate to the “Sales Tax License” section to start your process in applying for a sales tax license in Colorado. If you are an out-of-state seller with no physical presence, you will click on “Out-of-State Retailer Registration.” If you have a physical nexus within the state, you will click on “In-State Retailer Registration.”You will then follow through the prompts that walk you through the registration process and provide the necessary information. When you get to the “Sites” section, it’s important to select all the locations you expect to sell or do business in Colorado. This step is essential because it determines the specific local areas where you’ll need to manage your tax filings, potentially across several jurisdictions.During your registration process, you will also create an online user profile with the state of Colorado. Remember the credentials you input in the “Login Information” section. You will use them to log into your CO Revenue Online account.
2. What Information Do You Need to Get a Seller’s Permit in Colorado?
To successfully acquire a seller’s permit in Colorado, it’s important to prepare and provide specific information and documents. The following is a list of the necessary information and documents required to register a sales tax permit in Colorado:
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, Nexus Start Date
3. How Much are the Fees for Applying for and Renewing a Seller’s Permit in Colorado?
Registering for a sales tax permit in Colorado varies based on the time of application:
$16 for January-June and $12 for July-December in the first year, and
$8 for January-June and $4 for July-December in the second year.
Newly created accounts must also include a $50 deposit along with the application, refundable after the business has collected and remitted $50 in state sales tax. Businesses that sell only sales tax-exempt products may request a waiver of the deposit.In Colorado, your sales tax permit needs to be renewed at the end of every odd-numbered year, meaning it expires on December 31st in years like 2023, 2025, and 2027, unless the Department of Revenue says otherwise. To renew, you can easily do it through the state’s Revenue Online website.
4. What are Other Ways to Register for a Seller’s Permit in Colorado?
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.
Paper Application: You will need to fill outForm CR 0100, attach the necessary documents, and mail them to the address provided in the form.
What’s Next?
Once you’ve submitted your sales tax application online, you’ll land on a confirmation page. This page confirms your sales tax permit request and gives you a unique confirmation code to check your status.Typically, processing your account takes about 24 hours. After approval, you’ll get an email with your Colorado Account Number, login details, and payment instructions for the License Fee and Deposit. Once you log in to your account, you will be able to see a copy of your sales tax license in Colorado as well as your filing frequency. A copy of your sales tax permit will also be sent to your mailing address.Obtaining a Sales Tax Certificate requires you to collect sales tax on eligible sales in Colorado. Remember that if your business has a physical location in Colorado, the Seller’s Permit must be visibly displayed at all timesat the place for which the certificate is issued.If you ever encounter any difficulties, have any questions, or prefer TaxHero to manage these tasks on your behalf, don’t hesitate to reach out! Contact us today.
Starting a business in Arkansas is an exciting venture, but it’s crucial to understand the legal requirements that come with it. A common area of confusion for many new business owners is understanding the need for a Sales Tax Permit in Arkansas, also known as a seller’s permit. This permit allows you to collect sales tax on taxable products and services from customers in Arkansas.
This blog will guide you through each step of applying for a sales tax permit, with clear instructions to help you and your business begin collecting sales tax effortlessly.
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Starting a business in West Virginia is an exciting venture, but it’s crucial to understand the legal requirements that come with it. A common area of confusion for many new business owners is understanding the need for a Sales and Use Tax Permit, also known as a seller’s permit. This permit allows you to collect sales tax on taxable products and services from customers in West Virginia.
This blog will guide you through each step of applying for a sales tax permit, with clear instructions to help you and your business begin collecting sales tax effortlessly.
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Starting a business in Wisconsin is an exciting venture, but it’s crucial to understand the legal requirements that come with it. A common area of confusion for many new business owners is understanding the need for a Seller’s Permit in Wisconsin, also known as a sales tax permit. This permit allows you to collect sales tax on taxable products and services from customers in Wisconsin.
This blog will guide you through each step of applying for a sales tax permit, with clear instructions to help you and your business begin collecting sales tax effortlessly.
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Starting a business in Mississippi is an exciting venture, but it’s crucial to understand the legal requirements that come with it. A common area of confusion for many new business owners is understanding the need for a Sales and Use Tax Permit, also known as a sales tax permit or seller’s permit. This permit allows you to collect sales tax on taxable products and services from customers in Mississippi.
This blog will guide you through each step of applying for a sales tax permit, with clear instructions to help you and your business begin collecting sales tax effortlessly.
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Starting a business in Iowa is an exciting venture, but it’s crucial to understand the legal requirements that come with it. A common area of confusion for many new business owners is understanding the need for a Sales and Use Tax Permit in Iowa, also known as a seller’s permit. This permit allows you to collect sales tax on taxable products and services from customers in Iowa.
This blog will guide you through each step of applying for a sales tax permit, with clear instructions to help you and your business begin collecting sales tax effortlessly.
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Starting a business in South Dakota is an exciting venture, but it’s crucial to understand the legal requirements that come with it. A common area of confusion for many new business owners is understanding the need for a Sales Tax License, also known as a sales tax permit or seller’s permit. This permit allows you to collect sales tax on taxable products and services from customers in South Dakota.
This blog will guide you through each step of applying for a sales tax permit, with clear instructions to help you and your business begin collecting sales tax effortlessly.
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Starting a business in Nebraska is an exciting venture, but it’s crucial to understand the legal requirements that come with it. A common area of confusion for many new business owners is understanding the need for a Sales Tax Permit in Nebraska, also known as a seller’s permit. This permit allows you to collect sales tax on taxable products and services from customers in Nebraska.
This blog will guide you through each step of applying for a sales tax permit, with clear instructions to help you and your business begin collecting sales tax effortlessly.
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Starting a business in New Jersey is an exciting venture, but it’s crucial to understand the legal requirements that come with it. A common area of confusion for many new business owners is understanding the need for a Certificate of Authority in New Jersey, also known as a sales tax permit or seller’s permit. This permit allows you to collect sales tax on taxable products and services from customers in New Jersey and remit it to the state.
This blog will guide you through each step of applying for a sales tax permit, with clear instructions to help you and your business begin collecting sales tax effortlessly.
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Starting a business in Ohio is an exciting venture, but it’s crucial to understand the legal requirements that come with it. A common area of confusion for many new business owners is understanding the need for a Vendor’s License in Ohio, also known as a seller’s permit or sales tax permit. This permit allows you to collect sales tax on taxable products and services from customers in Ohio and remit it to the state.
This blog will guide you through each step of applying for a sales tax permit, with clear instructions to help you and your business begin collecting sales tax effortlessly.
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Starting a business in Michigan is an exciting venture, but it’s crucial to understand the legal requirements that come with it. A common area of confusion for many new business owners is understanding the need for a sales tax license in Michigan, also known as a sales tax permit or seller’s permit. This allows you to collect sales tax on taxable products and services from customers in Michigan and remit it to the state.
This blog will guide you through each step of applying for a sales tax permit, with clear instructions to help you and your business begin collecting sales tax effortlessly.
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Running a business anywhere in the US means you’ll eventually encounter the terms “Resale Exemptions” or “Resale Certificates.”
Using these documents for your transactions may seem complicated at first, especially if you come from a state without sales tax or operate in one, like Oregon.
In this blog, we will break down everything you need to know about Resale Exemptions or Resale Certificates.
By the end of this guide, your business will understand how to handle purchases from vendors in other states that require a resale certificate, even though Oregon does not have a general sales and use tax.
However, a business registered in Oregon can provide an Oregon Business Registry Resale Certificate to an out-of-state seller, which may be accepted as a substitute for a standard resale certificate.
Starting a business in Colorado is an exciting venture, but it’s crucial to understand the legal requirements that come with it. A common area of confusion for many new business owners is understanding the need for a Sales Tax License in Colorado, also known as a sales tax permit or seller’s permit. This permit allows you to collect sales tax on taxable products and services from customers in Colorado and remit it to the state.
This blog will guide you through each step of applying for a sales tax permit, with clear instructions to help you and your business begin collecting sales tax effortlessly.
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