WHAT ARE SELLERS PERMITS or Sales Tax Ids?
Example of a business that need a seller’s permit. Al Pacone, an accountant sells books (taxable products). John has to apply for a sellers permit in addition to his state professional license. A sellers permit or Sales Tax Id is separate from the professional license and the Business Licence. In most states, a sellers tax permit or number enables Al Pacone to buy at wholesale prices. Registering and obtaining a sales tax permit or resale permit vary depending on the state. In most states, businesses dealing in tangible products for retail sale must obtain a permit. In other states, that seller’s license id requirement is extended to retail sales of taxable services. Each State has a different name for the same permit. Other names for a Sales Tax Id are the following: • Resale Permit / License • Reseller’s License • Certificate of Authority • Use and Sales Tax License / Permit • Sales and Use Tax • Application to Collect / Report Tax • Transaction Privilege (Sales) Tax Resale Certifica
