Seller’s Permit in New Mexico
Even small New Mexico businesses need a Seller’s Permit if selling retail or wholesale. Licensing requires getting a wholesale license and business license. The wholesale license is the same as a seller’s permit. Some jurisdictions require both a seller’s permit and business license to ensure compliance with rules.
To apply, register with New Mexico’s Taxation and Revenue Department. Most 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.
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.
Difference Between Reseller Permit and Seller Permit
What is the difference between a reseller permit and a seller permit? 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.