Sales Tax

How to Keep Resale Certificate Records for Tax Compliance Why resale certificate recordkeeping matters A resale certificate supports a tax-exempt purchase of inventory or items intended for resale. Keeping complete, well-organized records helps demonstrate why sales tax was not paid at the time of purchase and helps prevent assessments, penalties, and interest during an audit.

How to Buy Wholesale Tax-Free: Step-by-Step Guide (Using a Resale Certificate) What “Buying Wholesale Tax-Free” Really Means Buying wholesale tax-free generally means purchasing inventory without paying sales tax at checkout because you intend to resell the items to customers. In most states, this is done by providing a valid resale certificate (sometimes called a reseller

How to Fill Out a Resale Certificate for Suppliers What a Resale Certificate Is (and Why Suppliers Request It) A resale certificate is a document a buyer provides to a supplier to purchase items tax-free when those items will be resold in the ordinary course of business. It supports the supplier’s decision not to charge

Resale Certificate Misuse: What Triggers Audits and Penalties Why Resale Certificates Get Scrutinized A resale certificate is intended to support a tax-exempt purchase of items that will be resold in the ordinary course of business. Misuse happens when a buyer issues a resale certificate for purchases that are not truly for resale, or when a

What Can You Buy Tax-Free With a Resale Certificate? Resale Certificate Basics: What It Does (and Doesn’t) Do A resale certificate allows a business to buy certain items without paying sales tax when those items are purchased for resale in the ordinary course of business. The sales tax is generally collected later, when the business