As an online seller, you may buy the products you sold from wholesalers or other suppliers Essence Or, if you are a craftsman or a manufacturer, you are likely to buy parts of the product somewhere.
The good news is that in the United States, you can buy products or components intended to be sold for sale without paying sales tax. You can do this by presenting the resale certificate (also known as the \”dealer permit\” or more extensively to your supplier.
A little less good news is that the US sales tax is managed at the first level of the state, which means that the rules and laws of the use of the resale certificate vary from the state. However, when using the resale certificate, there are some general experience rules. We have summarized guidelines to use the resale certificate in 45 states and Washington SARs in the United States.
Let’s dig in depth!
Resale Certificate 101
The resale certificate is a document that retailers have shown their suppliers to purchase products or parts with tax -free products. The rules and laws of using and receiving resale certificates vary from states in the United States.
To legally use the resale certificate, retailers must truly intend to resold the purchased products or products. It is illegal to buy what you plan to keep and use using the resale certificate. It is also illegal to buy duty -free products (such as printing paper or coffee) you may use in the daily business process. We will discuss this in detail in the \”Acceptance Certificate\”.
When using the resale certificate, you need to provide basic contact information, such as your name, company name, address and telephone number. You also need to provide information about your identity as a dealer and an effective sales tax registration number. If you do not register for the sales tax, then you are not qualified to buy resale products.
Example of the KFC resale certificate
You must sign and indicate the date on the resale certificate to prove that the information you provide is effective. Some states also require your suppliers to collect other information about the resale certificate.
A common misunderstanding is that your state is issued to a resale certificate. Although in some cases, you can ask your state to obtain a resale certificate or a resale certificate template, but you can also print a blank resale certificate and even go to any office supplies store to buy tablet computers. More important than the actual certificate itself is that you provide and verify that your supplier needs to goAll data you sell tax exemption.
When the supplier does not accept your resale certificate
It is important to note that your supplier reserves the right of rejection of your replacement certificate, and he or she may not want to sell you a lot of duty -free products. A large -scale chain retail store in the United States refused to accept the resale certificate of their doubts as a dealer, just because they did not want other retailers to sell their exclusive products. When the supplier suspects that the resale certificate is fraudulent or improperly used, they can also refuse the resale certificate.
Some states in the United States are not allowed to accept foreign resale certificates. This means that if you want to use the provider of the state from the provider of the state, you need to register the sales tax license in the state and collect the sales tax to all the buyers in the state.
Florida
Hawaii
Illinois
Louisiana
Maryland
Massachusetts
Washington Special Economic Zone
If you finally bought it as a retailer, they finally purchased it. The products used for resale and pay for the sales tax, and some states allow you to pursue recovering the sales tax paid.
Accept the resale certificate As a retailer, a buyer of you May show you a resale certificate. This may be a good way to promote sales and enable your products to enter more stores and more customers. But be careful! In most states, if retailers accept fraudulent resale certificates, he or she will eventually be responsible for repaying unsoliable sales tax. That’s right -the due diligence of those who fail to show you the resale certificate may cause you to pay for it from your pocket. Ouch!
When the customer presents the resale certificate to you, please pay attention to the following operations:
Make sure the full-filling certificate
-The request your state request All the information must be complete, and the resale certificate must be signed and indicated.
Verify whether the buyer’s resale certificate is valid -This certificate number must be matched with the state records and unfaied. Most states allow you to verify the resale certificate online. Please keep in mind that if you live one of the states that do not allow remote resale certificates above, you should not accept foreign resale certificates.
Use \”goodwill\” to confirm that the buyer ’s purchase of goods is to be sold for sale -What states are different, but if you“ goodwill ”obtain a bad sales tax certificate, dealers are usually not responsible for tax fraud, that is, that is, that is, The seller lied or falsely stated himself for fraud. Ensuring that you sincerely accept the resale certificate is to determine whether these items are the product that the buyer is really resold. For example, if your buyer is buying a \”resale\” swimming pool, but in his resale certificate, he may have a flower shop, and you may need to think twice.
Archives of the resale certificate -Estly that most states require you to archive the resale certificate for about four years (time depending on the state). The tax department in your state can review and check whether all the resale certificates you receive are valid.
For more information about using the resale certificate in Woocommerce, please see our state guidelines on the use and acceptance certificate.
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Example of the KFC resale certificate
