Even small New Mexico businesses need a Seller’s Permit if selling retail or wholesale. Licensing requires getting a wholesale license and business license.
Registration Process
To apply, register with New Mexico’s Taxation and Revenue Department. You can register online for a seller’s permit by providing information like name, address, EIN, projected sales, products sold, etc. It typically takes 7-10 days to receive a permit after submitting the application. Most businesses operating or selling in New Mexico need a resale certificate annually. Even online businesses shipping to residents must collect sales tax, so the certificate allows this.
Permits and Certificates Explained
The seller’s permit is required if selling taxable goods or services. The gross receipts tax differs from a sales tax. Sales tax is added to the selling price, while the gross receipts tax is on the transaction itself. A seller’s permit allows collecting and remitting sales tax, while a resale certificate enables purchasing items tax-free for reselling.
While a seller’s permit is necessary to legally do business in a state, a resale certificate is only needed if making tax-exempt purchases from suppliers/wholesalers. You apply for a seller’s permit from the state, while a resale certificate is given to suppliers/wholesalers as proof of tax-exempt sale.