New York Form ST-120 Resale Certificate: How to Complete It

New York Form ST-120 is a resale certificate that an eligible purchaser gives to a seller when buying qualifying property or services for resale. The purchaser completes the form; it is not submitted directly to the New York State Tax Department. A registered New York sales tax vendor generally completes Part 1 and provides a valid Certificate of Authority number. A qualifying purchaser that is neither registered nor required to register in New York uses Part 2.

The form must match the transaction. It cannot be used for supplies, equipment, or services the purchaser will consume rather than resell. It also cannot be used by contractors, for motor fuel or diesel motor fuel, or to eliminate prepaid sales tax on cigarettes.

Determine whether you are eligible to use Form ST-120

A registered New York sales tax vendor may use Part 1 to purchase qualifying property or services for resale or transfer to customers. The purchaser must have a valid New York Certificate of Authority. If you are preparing to register, see New York State Sales Tax Form DTF-17 — Application for Registration as a Sales Tax Vendor. Businesses that already have a certificate can review how to verify a New York Certificate of Authority.

Part 2 has a narrower purpose. It is for purchasers that are not registered and are not required to register in New York, subject to the delivery and resale conditions printed on Form ST-120. An out-of-state address alone does not establish eligibility for Part 2. The relevant question is whether the purchaser is registered or required to register in New York and whether the purchase fits one of the Part 2 categories.

Do not use ST-120 merely because an item relates to your business. The property or service must fall within an applicable resale category. For example, office furniture used in the purchaser’s own office is not inventory for resale. A contractor also cannot substitute ST-120 for a certificate intended for a contractor transaction.

Information to gather before completing the certificate

Collect the transaction and registration information before signing. This reduces the chance that the seller receives a certificate with a missing number, an unclear purchase category, or mismatched business details.

• Seller information: The seller’s legal or business name, street address, city, state, and ZIP code.
• Purchaser information: The purchaser’s name, street address, city, state, and ZIP code.
• Business description: A plain-language description of the purchaser’s business and what it principally sells.
• Certificate choice: Whether the certificate is single-use or blanket.
• New York registration details: For Part 1, the purchaser’s valid New York sales tax identification number and applicable vendor classification.
• Out-of-state details: For Part 2, the purchaser’s home jurisdiction and registration number. If that jurisdiction does not require registration or does not issue a number, enter “not applicable” as directed by the form.
• Purchase category: The category that accurately describes what is being purchased for resale.
• Signer information: The printed name and title of the owner, partner, or authorized person who will sign, along with the date prepared.

A blanket certificate may cover purchases of the same general type of property or service for resale. A single-use certificate applies to one transaction. If the blanket option is not selected, ST-120 is treated as a single-use certificate. Temporary vendors may issue only single-use certificates and must include the expiration date of their Certificate of Authority.

How to complete New York Form ST-120

1. Enter the seller’s details. Provide the seller’s name and full street address, including city, state, and ZIP code. Use information that allows the seller to connect the certificate with its transaction records.
2. Enter the purchaser’s details. Add the purchaser’s name and complete address. Then describe the nature of the purchaser’s business and identify what the business principally sells. Be specific enough to show how the purchase relates to the resale activity.
3. Select single-use or blanket. Choose single-use for an individual purchase. Choose blanket only when the certificate is intended to cover purchases of the same general type of property or service for resale. Leaving the blanket option unselected causes the form to be treated as single-use.
4. Complete the correct purchaser section. A registered New York sales tax vendor uses Part 1, selects the applicable vendor classification, and enters a valid New York sales tax identification number. A temporary vendor also enters the Certificate of Authority expiration date. A qualifying purchaser using Part 2 provides its home jurisdiction and registration number, or “not applicable” when its jurisdiction does not require registration or issue a number.
5. Select the purchase category. Choose the category that describes the transaction. Depending on whether Part 1 or Part 2 applies, the available choices address qualifying tangible personal property, a service for resale, restaurant-type food or heated food or drink for resale, or specified categories for non-New York purchasers. Do not select a category merely because it seems closest; it should accurately fit the resale transaction.
6. Review the prohibited uses. Confirm that the certificate is not being used by a contractor, for an item or service that will be consumed rather than resold, for motor fuel or diesel motor fuel, or to claim exemption from prepaid sales tax on cigarettes.
7. Sign and date the certificate. The purchaser’s owner, partner, or another authorized person must print their name and title, sign the form, and enter the date it was prepared.
8. Give the completed form to the seller. Provide it preferably at the time of sale and no later than 90 days after the purchase. The purchaser does not send ST-120 directly to the Tax Department.

What happens after the certificate is delivered

The seller should review the completed certificate in connection with the purchase and associate it with the applicable invoice or other source document. A New York registered seller accepting Form ST-120 must retain it for at least three years after the due date of the related return or the date the return was filed, whichever is later.

The purchaser should keep a copy with its purchasing records. For a single-use certificate, retaining the related invoice helps show which transaction the certificate covered. For a blanket certificate, purchase records should make it possible to distinguish covered resale purchases from purchases the business made for its own use.

A blanket certificate is not a blanket exemption for everything purchased from that seller. Its stated coverage is purchases of the same general type of property or service for resale. If the business later buys office supplies, fixtures, tools, or other items for its own operations, the existence of a blanket ST-120 does not turn those purchases into resale transactions.

Practical completion examples

Retailer purchasing inventory

A registered New York retailer purchases a recurring line of products that it will sell to customers. The retailer can complete Part 1, enter its valid New York sales tax identification number, describe its retail business and principal products, and select the qualifying tangible personal property category. If future purchases from that supplier will be the same general type of resale property, the retailer may select blanket. Otherwise, it can use a single-use certificate.

Business buying items for its own use

A store buys shelving, a desk, and cleaning supplies for its premises. Even though the store holds a Certificate of Authority and sells other merchandise, ST-120 cannot be used for these purchases when the items are for the store’s own use rather than resale. Eligibility depends on the specific purchase, not simply on the purchaser’s status as a retailer.

Qualifying purchaser outside New York

A purchaser that is not registered and is not required to register in New York may consider Part 2 if the transaction meets the delivery and resale conditions shown on the form. The purchaser identifies its home jurisdiction and registration number. If its jurisdiction does not require registration or issue such a number, it writes “not applicable.” The purchaser should not choose Part 2 solely because its headquarters or mailing address is outside New York.

Temporary vendor

A temporary New York vendor completing Part 1 selects the applicable classification, provides its valid New York sales tax identification number, and enters the expiration date of its Certificate of Authority. Because temporary vendors may issue only single-use certificates, it should not select the blanket option.