Donna Genie explains how resale certificates let you skip sales tax when buying items you plan to resell. It's a legal way to avoid the tax if you have a business license and buy inventory for your store.
What's a resale certificate? When should you use it? Well, if you're using a resale certificate, that means that your vendor will not charge you sales tax. So that's a wonderful thing, isn't it? Now, we can't do that for everything we buy. What can you.
Use a resale.
Certificate for? Well, it is simply things that you are going to resell. So if you are buying Canvas at Michael's and you're going to resell that as a part of a project, you should not pay sales tax on it because your customer should be charged sales tax when they buy that product from you. So take a look at what you're buying and make.
Sure you're using a.
Resale certificate whenever possible. Now, don't use it on things that you're going to consume, like paper towels, napkins, cleaning supplies, things like that. It must be something that you are.
Going to resell.
Specifically.
To a guest.
So I hope that saves you a little bit of money. And you may have to have them.
Ring up some orders.
Separately to do.
That, but it's.
Well worth the cost in the long run. If you have questions about how a resale certificate should be used, please comment below.
It.
