What is a certificate of resale and why would I need one?
Not everyone has or needs a certificate of resale. It completely depends upon your particular circumstances whether the use of a resale certificate is applicable or not. Under many state laws, which vary by state, when you purchase tangible personal property for resale, the transaction is not subject to sales or use tax, provided the sale is properly documented. In other words, if you are going to resell the product purchased from Imperial to other people, such as a retailer, and you have the proper documents, using a resale certificate allows you to avoid paying taxes twice.
Related Questions
- Can an individual tavern owner bring a resale certificate into a grocery store and purchase alcohol/beer exempt from sales tax if their tavern ran out of an item?
- Can a Connecticut business use a resale certificate to purchase goods and services for use by the business?
- What is a Resale Certificate or Public Offering Statement?
