Who Can Use a Resale Tax Exempt Certificate?


Quick Answer

Individuals and organizations can use resale tax exempt certificates by giving them to sellers in exchange for not paying sales-and-use taxes on purchases of items they intend to resell, states Chron. In order to use the certificate, buyers must possess valid taxpayer IDs or sales permits.

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Full Answer

Individuals, businesses and others that provide certificates to sellers provide background information about their businesses, attest to their intent to resell the goods and include descriptions of the exempt goods on the document, according to Chron. Details of the certificate process are determined by individual states. Buyers who use the certificates fraudulently or do not provide a document to the seller in the required amount of time are required to pay sales tax.

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