![]() The seller’s permit identifies you with your state as a collector of sales tax. ![]() But in most states, including Rhode Island, you’ll need a seller’s permit as well as resale certificates for each of your vendors. In a few states, a seller’s permit, or sales tax permit, also serves as a resale certificate that applies to all vendors. The certificate is not filed with the state of Rhode Island, it’s simply kept on file by the seller. In Rhode Island, you’ll need to obtain the resale certificate form from the Division of Taxation. They may choose not to because of the risk of expired or false certificates, which would put the wholesaler on the hook for the sales tax.įredP / How to Apply for a Resale Certificate in Rhode Island Not all wholesalers will accept resale certificates, nor do they have to. You are only able to buy items tax-exempt if you are going to collect sales tax on them later. This would be tax fraud, a felony offense. You cannot use a resale certificate to buy items you do not intend to resell, such as a new computer for your business. This means you’ll need a resale certificate for each one of your vendors. Keep in mind, each resale certificate, also known as a resale license, applies to a single vendor. If you do not resell those items, or fail to collect sales tax, the punishment could be costly fines or potential jail time. The catch is that whenever you do use a resale certificate to purchase goods, you are legally bound to resell those items and collect sales tax when you do so. Depending on the size of your business, this can save you tens of thousands of dollars each year. ![]() If your business has a valid resale certificate, you can buy goods from a wholesaler without paying Rhode Island sales tax, though you may pay a use tax. It’s a relatively simple process, as detailed in this step-by-step guide. If you have recently launched or are planning to launch a business that will sell products or services in Rhode Island, you’ll want to get a resale certificate, or several of them, before you start doing business, as this can save you a lot of time and money. ![]()
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