Generally, resellers to do pay sales tax when they purchase the items,but must collect sales tax when those items are sold to the end user. Resale exemptions, which are usually in the form of a resale certificate, allow your customer to acquire property tax-free if it will later be resold.

Is resale tax-exempt?

A resale certificate is also called a sales tax certificate, reseller permit, or sales tax exemption certificate. It does not exempt you from paying sales tax on items you use in your business (e.g., office supplies). Qualifying goods are either items you plan to resell or use as parts in products or services you sell.

What does resale tax-exempt mean?

A sales tax exemption releases a business or organization from having to pay state or local sales tax on at least some of the items that it purchases. Retail businesses generally do not have to pay sales tax when buying wholesale goods that will be resold to an end user.

Do you have to pay sales tax on a resale certificate?

It also allows you to collect sales tax from your customers, the end consumer. Without a resale certificate, you will have to pay sales tax on the goods you buy wholesale and then also charge sales tax.

Do you have to pay sales tax when you resell something?

Generally, resellers to do pay sales tax when they purchase the items,but must collect sales tax when those items are sold to the end user. While the products sold by resale businesses may be very different, they all buy products and then resell them in the same form in which they were acquired.

How to file sales tax as a reseller?

Metoyer keeps meticulous reseller sales tax records using a spreadsheet that itemizes each transaction and any tax collected. She then can easily file quarterly tax returns and pay sales tax on time. She files yearly tax returns with the help of her accountant.

Are there any tax exemptions for reselling property?

The type of exemption that you’re most likely to see is a resale exemption. Resale exemptions, which are usually in the form of a resale certificate, allow your customer to acquire property tax-free if it will later be resold.