Resale Certificate

What is a Resale Certificate? A resale certificate is a document proving that you are a legitimate retailer or purchaser and are buying products to either resell or use as component parts of products you plan to resell.

To use a resale certificate, you generally need to be registered to collect sales tax in at least one US state.

Resale certificates are also sometimes called “reseller’s permits” or sometimes just the blanket term “exemption certificates.”

Your resale certificate is generally the same thing as your sales tax permit (sometimes called sales tax license.)

However, in some cases, a state may issue a reseller a separate “resale certificate” number.

Though it has the word “certificate” in the name, a resale certificate these days isn’t always a specific piece of paper.

While some states do issue retailers a specific resale certificate to present to their vendors, most just require that you fill out certain information.

The Typical Information You Need For a Reseller Certificate: Your business identifying details Your personal identifying details.

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.

Below is an example of a resale certificate from my state which is Maryland.

Reference the requirements of you specific state here: https://www.taxjar.com/blog/resale-certificates-by-state

Thank you Jesse (Dollar Dan) for this guide