Resale certificates can go by a number of different names: Reseller‘s Permit, Resale License, Resale Exemption Certificate, etc. Whatever name the document goes by, the function of it is to allow retailers to buy products without paying sales tax. Resale certificates cannot be used for items that will be used or consumed by the purchaser in their normal course of business.
The seller is responsible for ensuring the certificate is valid when they accept it from the purchaser. If the seller collects an invalid certificate, they may be on the line to cover the taxes. As with everything pertaining to sales tax, each state is different. It is up to the seller to know the rules for the states they are doing business in. The following are general guidelines for a seller to follow: ..
Source: taxconnections.com
