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, provided these goods are intended for resale to their customers in the normal course of their business.
- Make tax-exempt purchases of inventory and materials that will become part of the products they sell by presenting a valid resale certificate to their suppliers.
The purpose is to prevent double taxation—once at the wholesale level and again at the point of retail sale.
However, a resale certificate is not a blanket exemption from all sales tax obligations. Businesses are still required to collect and remit sales tax on taxable sales to end consumers.
Why do you need a 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.
When filling out Form TAX-F005, a purchaser must include their Nevada Taxpayer ID Number to confirm that they are registered with the Nevada Department of Taxation and authorized to make tax-exempt purchases for resale purposes.
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. A Nevada Resale Certificate, on the other hand, allows you to purchase goods tax-free from suppliers if those goods are intended for resale. To use a resale certificate, you must have an active sales tax permit.
Who Can Use a Resale Certificate in 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. This permit is required before you can legally issue or use a resale certificate.
Need help? Read our blog: How to Get a Seller’s Permit in Nevada
3. Gather Your Business Information: You’ll need basic business details to complete the resale certificate, including:
- 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
- NAICS Code
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 do not 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 property is later used other than for resale (e.g., demonstration or business use), the purchaser becomes liable for use tax at that time.
- Misuse of the certificate (e.g., fraudulent intent) is considered a misdemeanor under NRS 372.175
- Out-of-state buyers:
- Out‑of‑state resale certificates are accepted if they meet Nevada’s format requirements (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. Certificates may be electronic, and blanket certificates are acceptable as long as they are properly completed.
- 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 (NRS 372.735) requires sellers to retain certificates, invoices, and related tax records for a minimum of four years (or eight years if 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 your permit is revoked, suspended, or closed, the 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.
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Schedule a Demo to see how TaxHero can streamline your resale certificate in Nevada process today!