Seller’s Permit Requirements
You need a seller’s permit if selling goods or services in New Mexico and collecting sales tax. The seller’s permit is also known as a sales tax license or sales and use tax permit. Even small New Mexico businesses need a Seller’s Permit if selling retail or wholesale. States require permits so businesses collect and remit sales taxes.
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.
Licensing requires obtaining a wholesale license and a business license. The wholesale license is identical to a seller’s permit. Some jurisdictions require both a seller’s permit and a business license to ensure compliance with rules.
Distinction Between Seller’s Permit and Resale Certificate
What is the difference between a reseller permit and a seller permit? A seller’s permit allows the collection and remitting of sales tax, while a resale certificate enables the purchasing of items tax-free for reselling. Even online businesses shipping to residents must collect sales tax, so the certificate allows this.
A seller’s permit is essential to legally conduct business, while a resale certificate is only necessary if making tax-exempt purchases from suppliers/wholesalers. You apply for a seller’s permit from the state, and a resale certificate is provided to suppliers/wholesalers as proof of tax-exempt sale.