Business glossary
Resale certificate
A document used under applicable rules to purchase qualifying goods for resale without paying sales tax at purchase.
Example
A retailer buying qualifying inventory for resale may give the supplier a resale certificate accepted under the applicable state rules. The supplier keeps the certificate with the relevant transaction evidence.
How it differs from related terms
A resale certificate is not a general exemption for every business purchase. Items bought for the business's own use may be treated differently. Check the state's current requirements and certificate validity.
Frequently asked questions
What is an example of resale certificate?
A retailer buying qualifying inventory for resale may give the supplier a resale certificate accepted under the applicable state rules. The supplier keeps the certificate with the relevant transaction evidence.
How should resale certificate be interpreted?
A resale certificate is not a general exemption for every business purchase. Items bought for the business's own use may be treated differently. Check the state's current requirements and certificate validity.