Resale certificate
A resale certificate is a form that a business with a sales tax permit gives to its supplier to buy inventory without paying sales tax, since tax will be collected when the items are sold to the customer. It applies only to goods for resale, not supplies, and rules differ by state.
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About resale certificate.
Also called: resale exemption certificate, reseller permit, certificate of resale.
You generally need an active sales tax permit first. The supplier keeps the certificate on file to show why they did not charge tax.
It does not cover things you use up, such as packaging or booth supplies, in many states. Misusing one can bring back taxes and penalties.
Wholesalers at craft shows may ask for one before selling to you. Keep copies, and check what your state accepts.
This is general information, not tax advice; check with your state tax agency or a tax professional for your situation.
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