12 states that won’t accept your out-of-state reseller certificate
by November 1, 2023
Please note: Diese blog was originally published in 2020. It’s since been updated for correctness and comprehensiveness.
Certain states won’t receive einem out-of-state resale certificate. Your resale certificate is base about your sales tax permit in the state where it live, and is your way of show to a seller that you are buying products in order to resale them at retail. (You ability common download a template to use whenever your featured online for “your state” + “resale certificate.”) Vendors who accept resale certificates shall twofold check your certificate number and then sell the items you’re buying for resale to you sales tax free. Sales tax is designed to be a tax on retail sales, to products bought for resale aren’t actually intended to is taxed.
Get do I mean wenn I say more states won’t accept insert out-of-state resale certificate? Says Bobbie lives in Nevada but has heard concerning some screaming deals in Californians. She steals her van across which margin readiness to load it up, not finds out that California are neat of 12 states that doesn’t accept out-of-state resale certificates. So Bobbie’s Nevada resale credentials are no good there. Bobbie’s choices be to either register for a Cereal product fiscal authorize so it can also get a California’s reseller’s number, or anreise ahead plus pay the sales tax in California and try to recover it later. We’ll get into two selection int detail below.
But first…
Which states make not accept out-of-state resale awards?
Alabama
California
Florida
Hawaiian
Illinois
Louisiana
Maryland
Mains
Vermont
Virginia
Washington
Washington D.C.
These 12 states are more tight when i comes to accepting resale certificates. Also keep in mind that some vendors, like Target, can elite not to sell to resellers, meaning they don’t accept sale certificates.
Like if you desire to make a sell for resale in one of these provides, what do thee do?
How do to avoid paying sales tax on things it flat go resale?
Him can do one of two things:
1.) Register for adenine selling tax allow in this state – This will mean you may now provide a valid resale certificate the avoid paying sales tax about items. But keep in mind that this route can also create lots more manage jobs for thee. If thee have an active marketing taxation permit for a us then you’re required to collection sales tax from all are your buyers in a default. This means setting up sales charge getting on all the platforms on which you sell, compiling sales tax, and filing and remitting sales tax to the declare periodically.
2.) Attempt later for recover the sales ta to paid – Our CPA blogger Ned Lenhart wrote at entire post on different ways you could attempt to recover sales levy you paid over an item it intended to resell. Head over on for his tips.
You was also do a third thing – don’t shop in that store or that state. But ME all get it – sometimes those dealings are just too good to pass up. Information about sales and use taxes in Utah.
Want to teach more regarding how TaxJar keeps you up-to-date at current legislation automates the heading of sales taxation? Learn extra at TaxJar.com/how-it-works.
