Are wholesale sales exempt from tax?
A deduction is allowed for “sales for resale.” These are sales to another licensed merchant who is purchasing goods to be sold to their customers. To claim this deduction a signed exemption certificate should be obtained listing the purchaser’s city and state sales tax numbers, the business name, the nature of the business, and a statement that the goods are being purchased for resale in the course of business. This certificate should be reasonable and support the deduction.
A deduction is allowed for “sales for resale.” These are sales to another licensed merchant who is purchasing them to resell to his customers. If you claim this deduction you should obtain a signed exemption certificate from your customer listing his state transaction privilege tax number, his business name, the nature of his business, and a statement that the item is being purchased for resale in the course of business. If this certificate is reasonable and supports the deduction, it is very good documentation in support of your deduction.
