Resale Certificate Example

Mark an x in the appropriate box.

Resale certificate example. It is valid as a resale certificate only if it contains the purchasers name address signature and arizona transaction privilege tax or other state sales tax license number as required by arizona revised statutes 42 5022 burden of proving sales not at retail. Use your reseller permit to buy only those items that you resell in the regular course of your business. A furniture manufacturer issues a resale certificate to cover the purchase of lumber to be used in manufacturing furniture for sale. Additionally a person misusing a resale certificate for personal gain or to evade the payment of tax is liable for each purchase for the tax that would have been due plus a penalty of 10 percent of the tax or 500 whichever is more.

Single use certificate blanket certificate temporary vendors must issue a single use certificate. However if you have a california sales tax permit. When you resell those items to consumers you must collect washington state and local sales tax and then submit that tax to the department. I certify that the above statements are true complete and correct and that no material information has been omitted.

Businesses that register with the florida department of revenue to collect sales tax are issued a florida annual resale certificate for sales tax annual resale certificate. It is to be filled out completely by the purchaser and furnished to the vendor. Arizona resale certificate the purpose of the certificate is to document the purchase of tangible personal property for resale in the purchasers regular course of business. To use a resale certificate you generally need to be registered to collect sales tax in at least one us state.

Examples of proper use of resale certificate a. California is one of 9 states that requires you to have a california sales tax permit in order to buy items for resale. A resale certificate is a document proving that you are a legitimate retailer or purchaser and are buying products to either resell or use as component parts of products you plan to resell. For example you should not accept a resale certificate describing the business as a service station for the purchase of a sofa or other item not regularly sold by service stations.

For example say you want to use a resale certificate with a vendor in california. You should not accept the certificate if you know or have reason to believe the property is being purchased for other than resale. If your business has been issued a reseller permit you are responsible for ensuring that the permit is used properly.