Service §05
Resale certificates, handled in any state.
A resale certificate is what lets you buy inventory without paying sales tax on it. What it takes to get one differs in every state. We handle it at a flat fee per state, plus any state fee. Contact us for a quote.
What it is
When a business buys goods it intends to resell, it can usually buy them without paying sales tax, and the resale certificate is the document that proves it. What that document is depends on the state. In some states you apply to the tax agency and the state issues a certificate. In others the certificate is a form you complete yourself and give to each supplier, and the supplier keeps it on file. Either way it normally rests on a sales tax registration you already hold, so the certificate is one step past the permit.
Who needs it
- Retailers and e-commerce sellers buying inventory from wholesalers and distributors
- Businesses whose supplier has asked for a certificate before removing sales tax from an invoice
- Sellers expanding into a state where they already hold a sales tax permit and now need to buy stock there
- CPAs and bookkeepers whose client has been charged sales tax on goods they are reselling
Whether a particular purchase qualifies to be bought for resale is a tax determination, and so is whether your business may issue a certificate at all. We do not make either call. Your CPA or sales tax advisor decides what qualifies; we prepare and file the paperwork at your direction. A certificate used for goods that were not bought for resale creates a liability for the buyer, so this is worth getting right with your advisor first.
What we do
- Send you a short form that asks only about the states on your order, already filled in from last time if you have worked with us before
- Confirm what the state requires, since some issue a certificate and others expect you to complete one for your supplier
- Prepare the certificate or the application for each state on your list
- File it with the state where the state is the one that issues it
- Deliver the finished certificate, and the account details where a state issues them
What you provide
- Company details (legal name, EIN, addresses, formation state)
- Your sales tax permit number for each state, or tell us if you do not hold one yet
- A description of what you buy for resale
- The suppliers the certificate is for, where the state expects a certificate per supplier
Price and timeline. Flat fee per state, plus any state fee passed through at cost. One state is one unit, however many certificates it takes. Need several states at once? Send us your list and we will quote the whole project as a flat total before you decide. We submit within 2 business days of receiving complete information. How long a state takes after that varies, and where no state filing is involved you get the finished certificate straight back.
If a filing gets rejected. If a state rejects something we prepared, we correct it and refile at no extra charge, and we handle the back-and-forth with the agency until it clears. We do not decide what qualifies for resale treatment and we do not cover tax assessed on a purchase that turned out not to qualify. That determination sits with you and your advisor.
Questions and answers
Do I need a sales tax permit before I can get a resale certificate?
Usually yes. A resale certificate normally references a sales tax registration you already hold in that state. If you do not have one yet, tell us and we will quote the registration alongside it so both happen in the right order.
Is a resale certificate the same as a sales tax permit?
No. The permit registers you to collect sales tax from your customers. The resale certificate is what lets you buy inventory without paying sales tax on it. They are separate documents and they do separate jobs.
My supplier is asking for a certificate. Can you deal with them directly?
We prepare the certificate and send it to you, and you pass it to your supplier. Suppliers keep certificates on file themselves, so the document needs to come from you as the buyer.
Can one certificate cover all my suppliers?
It depends on the state. Some accept a single blanket certificate that covers ongoing purchases, and some expect one per supplier. We tell you which applies in your state before you pay, and our fee is per state either way.
Do you decide whether something qualifies to be bought for resale?
No. That is a tax determination and it belongs to your CPA or sales tax advisor. We are a document preparation and filing service, we are not a law firm, and we do not give tax advice. You tell us what to prepare and we prepare it correctly.
Do certificates expire?
Some states set an expiry, some do not, and some suppliers ask for a refreshed copy on their own schedule. We tell you what applies in the state you are filing in, and you can come back to us for a renewal.
Can you handle several states at once?
Yes. Send us the list. We quote the whole project as one flat total before you commit, and the same senior specialist handles every state on it.