How to Get a Resale Certificate in Vermont

What a Resale Certificate Is (and Why It Matters)

A resale certificate is a document a business provides to a vendor to purchase qualifying items without paying sales tax at the time of purchase, because the business intends to resell those items in the normal course of business. The sales tax is generally collected when the business sells the item to the end customer.

• Primary use: Buying inventory for resale (wholesale purchases).
• Common examples: Retail merchandise, products you will resell online, parts you will resell as-is.
• Not the same as: A business license, EIN, or sales tax permit (though those may be required to support resale purchases).

Quick Snapshot Table (Concise Reference)

How to Get a Resale Certificate in Vermont (Step-by-Step)

1) Confirm you have a Vermont sales tax account (or need one)

In Vermont, a resale certificate is typically supported by being registered to collect Vermont sales tax. If you will be making taxable sales into Vermont or have Vermont nexus, you generally need a Vermont sales tax account before claiming resale exemptions from Vermont vendors.

2) Gather the business details vendors expect to see

• Legal business name and DBA (if applicable)
• Business address and contact information
• Federal EIN (or owner SSN for certain sole proprietors)
• Vermont sales tax account number (if registered)
• Description of the items you buy for resale and your type of business

3) Complete the resale certificate information accurately

Vendors rely on the certificate to document why they did not charge sales tax. Provide complete and consistent information that matches your tax registrations and business records.

• Use the same legal name format as your tax registrations.
• Use a business address that matches your operational records.
• Describe the general nature of goods purchased for resale (avoid overly broad statements if your business is narrow).

4) Provide the certificate to each vendor (and update as needed)

Resale certificates are provided to suppliers, not filed with every purchase. Many vendors keep the certificate on file and apply it to future qualifying orders. Update vendors if your business name, address, or registration status changes.

What You Can (and Cannot) Buy Tax-Free with a Resale Certificate

Typically eligible (inventory for resale)

• Finished goods you will resell
• Products you will bundle and resell as a taxable item
• Packaging that is transferred with the product to the customer (depending on the transaction and state rules)

Typically not eligible (business consumption)

• Office supplies, computers, furniture, and general operating equipment
• Tools and equipment used to perform a service (unless specifically exempt under a separate rule)
• Items for personal use

Common Mistakes That Trigger Vendor Rejection or Tax Problems

• Using a resale certificate for non-inventory purchases: creates unpaid use tax exposure.
• Mismatched names/addresses: vendors may reject the certificate or request re-verification.
• Buying outside your business type: purchasing items unrelated to your industry can raise questions.
• Assuming one certificate works everywhere: multi-state selling often requires multi-state registrations.
• Not tracking use tax: if you remove inventory for business use, you may owe use tax.

Recordkeeping and Audit Readiness

• Vendor names and dates certificates were provided
• Copies of certificates and any vendor approval confirmations
• Purchase invoices showing items bought under resale
• Sales records tying inventory purchases to taxable resales
• Documentation for any inventory withdrawn for business use (and related use tax entries)

Official Vermont resource: Vermont registration and tax guidance.

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