To get a resale certificate, first register to collect sales tax with your state. Resale certificates allow wholesaler purchases without paying sales tax. Keep resale certificates on file for 5 years in case of a sales tax audit.
State Tax Requirements and Trademark Considerations
Sellers need a sales tax ID and permit to collect and pay sales tax on Amazon. This ensures tax nexus authorization in states to collect and remit sales tax. Trademarking brands is recommended but not required on Amazon.
Wholesaler and Resale Certificate Procedures
Wholesalers require business licenses and sales tax permits or resale certificates before opening accounts. To get resale certificates, apply for a sales tax permit, fill out the resale certificate form, and await approval.
Use caution when processing resale certificates. Invalid certificates can leave sellers paying uncollected sales tax. Retailers use resale certificates to buy products for resale without sales tax. Resale certificate rules vary by state.
Verification and Record Keeping
Sellers can verify resale certificates by phone or by searching state databases. Keep thorough records in case of questions later.
To sell on Amazon, first register a seller account. Provide your business name, address, and contact information. Decide between Fulfillment by Amazon or Marketplace selling. Research import and export regulations if selling internationally. Obtain necessary business licenses and permits. Have your national ID, credit card statements, or utility bills ready to verify your identity.
Sellers need a sales tax ID to collect and remit sales tax in every state they have a sales tax nexus. Trademarking brands provides legal protections but isn’t required.
Online sellers use resale certificates to avoid sales tax when buying wholesale for resale online. Sellers can verify certificates by phone or state databases and keep thorough records.