Resale Certificate Form
A reseller permit (also known as a resale certificate, sales tax exemption certificate, or wholesale license) is an official document that allows a business to buy products or services intended for resale without paying local or state sales tax on the initial purchase.
The core purpose of a reseller permit is to ensure that sales tax is only paid once, by the final consumer, at the point of the retail sale.
Key Concepts
- Tax Exemption at Purchase: When a business with a reseller permit buys inventory from a supplier, they present this permit (or the associated ID number) to exempt the purchase from sales tax.
- Tax Collection at Final Sale: The reselling business is then responsible for collecting the appropriate sales tax from the end customer when the item is finally sold, and remitting that tax to the state tax authorities.
- Avoiding Double Taxation: This system prevents the same item from being taxed twice—once when the retailer buys it, and again when the consumer buys it.
- State-Specific: Reseller permits are issued by state or local governments, and the requirements and names for the document (e.g., "seller's permit" or "resale certificate") can vary by jurisdiction. Some states may accept a uniform multistate certificate.
- Misuse Penalties: The permit can only be used for items the business intends to resell. Using it to purchase items for business use or consumption can lead to penalties.
Interested in Applying for your Reseller’s Permit?
There is no single, federal government website that provides a unified system for all state reseller permits, as these permits are issued and managed at the individual state level.
To find the official information for a specific state, you must visit that state's Department of Revenue or Tax Commission website.
For example, to find information in Washington, you would visit the Washington Department of Revenue website, and in California, you would visit the California Department of Tax and Fee Administration (CDTFA) site.
