Massachusetts only has one type of sales tax permit available. Currently, there is no fee to register for a Massachusetts sales tax permit.
To obtain a sales tax certificate allows you to collect sales tax.
A seller’s permit allows you to collect sales tax on products and services sold to customers. States require businesses to collect and remit sales taxes on a predefined schedule. Failure to do so may result in fines.
A resale certificate allows businesses to buy goods without paying sales tax, then collect tax when reselling the item. To complete Massachusetts’ ST-4 form, provide your Account ID Number.
Applying for Permits and Certificates
You can apply online or in person for free. You must register with the state before beginning business. To sell liquor, complete an application, provide proof of address and insurance, pass a background check, and complete training. Food businesses need a food license.
After starting your business, register for a sales tax permit by gathering necessary information to ensure an accurate application.
How to Obtain a Resale License
- Obtain the application from the appropriate state department.
- Organize the information and documents you need to complete the application.
- Submit the fee for obtaining your reseller certificate.
The purpose of the certificate is to provide evidence of why sales tax was not collected on a transaction. Similar names for a resale certificate include reseller number, seller’s permit, exemption certificate, wholesale license, or reseller’s license.
In order for the supplier to allow the tax-exempt purchase, the seller needs proof the buyer intends to resell the product by providing a valid resale certificate.
Getting Started. Before a business starts selling products or providing taxable services, they must first register as a vendor and get a Sales Tax Permit from the Massachusetts Department of Revenue.
Here’s How to Get Your Seller’s Permit and Other permits and Registrations You May Need:
- First decide on a business structure Massachusetts as a Sole Proprietor, LLC/Corp, or Partnership.
- All MA Businesses Using a DBA doing business as name need a DBA Fictitious Business Name.
When You Need a Seller’s Permit
Retailers / Wholesalers, (Including Web based, Online, Websites, Home or eBay Businesses) Need a(n) MA Seller’s Permit (A.K.A state id, wholesale, resale, reseller certificate).
When purchasing goods from a business in the state of Massachusetts, the buyer customarily has to pay a sales tax as part of the total purchase price. There are exceptions to this, however. If a business buys goods from another business on a wholesale basis, the transaction will be exempt from the usual sales tax if the purchaser provides the vendor with a valid resale certificate.
To get your reseller permit, you just need to fill out an application form and submit it to your state’s Department of Taxation and Finance.
Massachusetts Sales Tax Permit vs. Resale Certificate
The first step you need to take in order to get a resale certificate is to apply for a Massachusetts Sales & Use Tax Certificate. This certificate will furnish a business with a unique Sales Tax Number, otherwise referred to as a Sales Tax ID number. Once you have that, you are eligible to issue a resale certificate. Therefore, you can complete the ST-4 sales tax resale certificate form by providing your Massachusetts Sales Tax Number.