Save my name, email, and website in this browser for the next time I comment. But sales tax can throw a monkey wrench in those works. What is a Resale Certificate? The type of business you operate. What types of items you are buying tax-free. A signature verifying that you are making the purchase in good faith and truly intend to resell the items you are purchasing. Washington D. How to Accept a Resale Certificate from a Buyer As an online seller, sooner or later you will potentially run into another reseller or purchaser who would like to buy from you.
Ensure the resale certificate is filled out accurately and completely — In the event of an audit, auditors will scrutinize resale certificates. Be sure each resale certificate you accept is completely filled out, including the signature. Verify that the resale certificate is legitimate — Most states allow vendors to verify a resale certificate online.
This allows you to double check that your customer provided you with a valid resale certificate number and that the certificate is not expired. Although sales for resale are one of the most fundamental exempt sales a business can make, it consistently makes up one of the largest areas of noncompliance uncovered in audits. These subdivisions provide, in summary, that a resale certificate can include any document describing the property purchased, such as a letter or purchase order.
But if purchaser is not required to hold a permit because it makes no sales in this State, a sufficient explanation should be entered on the certificate, and we also recommend attempting to obtain the purchasers permit number for the state where it is headquartered. The property purchased for resale must be described either by an itemized list, or by a general description. However, an otherwise valid resale certificate will not be considered invalid solely on the ground that it is undated.
In contrast a resale certificate is a form that is provided from a buyer to a seller to support the exempt nature of a sale for resale that would otherwise be taxable. Can Salehoo assist with the paper work. Regards Bill Reply. Should the supplier ask one from you, you may inform them that you are based in the UK and provide your VAT number instead. Sorry SaleHoo does not facilitate or assist in getting sales tax IDs or business licenses. I recommend consulting your local accountant, they should be able to assist you accordingly.
Eliza on 7 Mar Hi, my company is based in Mexico and i want a resale cert, but i am not sure if i have to register my company and my tax ID in some government website? I want to buy from Texas but products cross the border, I in fact have proof that this is for re sale, but what should i do, or whom i have to do the paperwork done?
Richelle Monfort on 16 Mar Hello Eliza, You might want to check with your local account since your products will cross borders. Sorry I do not have enough training to give you an answer to your question. Autum on 16 Mar Hello I design stationery from digital scrapbook kits at the moment only for family and friends for personal use.
If I want to sell online either print to order or as a downloadable file, do I need to purchase a resale certificate or license? I live in Delaware also if that helps. Andy on 21 Mar I am a non us resident living outside the US. I have an llc formed in wyoming but have no nexus in the US. But i need a resellers certificate.
How do i get one with no nexus as wyoming wont issue one with no nexus. Helene Goodworth on 28 Mar Hello!
I am a dressmaker and would like to buy my fabrics from a wholesaler. I think this means I need a reseller license. Do I need to register my business before I can apply for my reseller license? Thanks in advance! You will need a business license because you are a business end, and you need an EIN and a DBA to open a bank account. Dan on 14 Jul Also wondering this when it comes to purchasing items from Aliexpress to resell in New Zealand Reply.
Kasey on 21 Apr Hi! To provide better service to our customers I've often thought about reselling inexpensive items such as custom playing cards, flavored Icy pops, and any other little types of snacks or games that might be appropriate. Assuming that my employers would be okay with me doing such a thing on their property and time, what would you recommend my best coarse of action be? I'm planning to start two online stores that will sell mostly in USA and secondary in Europe and other countries as a later plan.
One of the two online stores will sell Print on Demand Products and one of the suppliers of this online store is located in the USA and the others in China. So my questions are: A. Are the USA dropshipping suppliers be considered as my Nexus? To sell online only via dropshipping in the USA, for both stores, will I need a wholesale license or seller's license from all states in the US that I will be selling online too?
Or from the states that the droppshiping suppliers are from? Will I have to pay taxes to the state of Florida since I was born there or just income tax federal tax since my physical address is not in the US and not in Florida? And if I sell to Florida from my online stores will I have to pay state tax because I'm from that state? I mean is Florida technically a Nexus for me?
Do I need wholesale license or seller's license from Florida because I'm from that state? Does your reply to the above questions apply to the Delaware LLC I plan to create as well, or to me personally if I do business as a sole proprietor? My physical address is in Europe for over 20 years. Any feedback is appreciated even if it doesn't cover all my questions.
Thanks in advance Regards James Reply. Richelle Monfort on 10 May Hi James, Because this is a delicate matter I suggest you consult with a professional so you will be given correct advise. Our training does not give us enough knowledge to answer your questions. Can you tell me what license and approvals I need please? Richelle Monfort on 14 May Hello Barbara, It would be best that you check with your local account to be sure that you are guided accordingly.
Neka on 30 May Hi , I am trying to get started with my online boutique. I wanted to know which licenses or permit I would need to start out with. I also am starting off as a Dropshipping business. I already have applied for my EIN number and have my business name that i want. What is actually a good place to register my business name?
I have already gotten my website starting off with Spotify Reply. Richelle Monfort on 31 May Hello Neka, It's not always required to get started with most suppliers but there are quite a few benefits of obtaining one. I would like to know if this reseller ID is it just for who live's in US? Thank you Reply.
Richelle Monfort on 8 Jun Hi Cid, It's not always required to get started with most suppliers but there are quite a few benefits of obtaining one. Lola on 11 Jun Hi. I am from a foreign conuntry but want to dropship products in the US from US manufactures. Do I need to register a company in the US and get a resellers certificate in order for the manufacturers to agree to work with me? But you may be asked to provide the equivalent of a sales tax ID from your country.
Ashley Y on 11 Jun Hello. I'm located in Pennsylvania and am looking to sell bows on Etsy as a hobby. Do I still need to get a sales tax permit? Richelle Monfort on 12 Jun Hello Ashley, It would be best that you check with your local country clerk or accountant to be sure you're on the right path. I got my Business Number, but I know most wholesale sites would ask for your reseller's permit. In Ontario that would be the 15 digit with "RT" right?
If so, this was the form I was going to fill out. I need these things in order to open wholesale accounts in the US. Eddie on 2 Aug Here is a question I cannot seem to find an answer to. Thank you Ed Reply. Richelle Monfort on 5 Sep Hello Eddie, I think it would be best that you consult with your local account for help so you will be guided accordingly. However, you don't pay GST on residential rents and financial services.
Resale Certificates When purchasing items for resale, registered sellers may avoid the sales tax by giving their supplier adequate documentation in the form of a resale certificate.
The certificate may be in any form so long as it contains: The name and address of the purchaser. A description of the property to be purchase.
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