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Resale Certificate?



8:37 pm on Jun 1, 2007 (gmt 0)

5+ Year Member


I've been calling some wholesalers and they keep asking me to send them a copy of my "resale certificate". I understand that this certificate says that my wholesaler won't charge me sales tax and then I have to pass the sales tax on to my customers.

My ecommerce site will be selling to other US states and to international countries. I won't be doing business in the state that I reside in; so my question is do I still have to collect sales tax? I thought the only state that I would have to collect sales tax is in the state that I operate in, right?

If this is the case then why do I need a "resale certificate" to setup an account with a wholesaler if I'm not doing business in my state as of now?

Thank you,



8:46 pm on Jun 1, 2007 (gmt 0)

WebmasterWorld Administrator lifeinasia is a WebmasterWorld Top Contributor of All Time 5+ Year Member Top Contributors Of The Month

Most likely becuase each wholesaler can't possibly know in which states the people they sell to operate. I'm not sure, but they be legally obligated to charge sales tax to everyone who doesn't have a resale certificate.


6:12 am on Jun 2, 2007 (gmt 0)

10+ Year Member

Often, possessing a "sale tax license" in your state is the same as a "resale certificate"


3:14 pm on Jun 2, 2007 (gmt 0)

10+ Year Member

The real reason that wholesalers ask you for a resale certificate or sales tax certificate is to verify that you are a legitimate business and not an individual who wants to make a one time purchase at a wholesale price.

It's simply not profitable enough for many wholesalers to deal with the public.


3:17 pm on Jun 4, 2007 (gmt 0)

5+ Year Member

Ok, so then if I don't do business within my state of operation then I don't have to charge sales tax to customers who are in other states or international countries, right?

The "resale certificate" only applies to states that I have operations in, and these are the customers that I have to pass on the sales tax to since the wholesaler didn't charge me sales tax, right?

Thank you, again.



6:03 pm on Jun 4, 2007 (gmt 0)

The wholesaler needs the certificate to enable them to not charge you tax on the order. You are their customer in the same state and they won't be charging you tax.

They don't care who you sell to.


7:58 pm on Jun 4, 2007 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member

In the past, I often could not put my hands on my resale certificate, so I would just make up a number to use. It always worked except once, when a company in my state wanted the actual copy of the resale certificate faxed to them. I decided that even though I by then had actually located my resale certificate, it was not worth my while to do business with them. None of the manufacturers I have dealt with in the past seven years have ever asked me for a resale certificate, and none of the actual wholesalers who have a significant minimum have ever asked me for a resale certificate. I have found that almost inevitably, someone asking for a resale certificate or number or whatever is offering you the opportunity to buy stuff at 50% off. That is not wholesale as far as I am concerned. Wholesale starts at 70% off, IMO. But my neck of the woods is chock full of companies offering this kind of "wholesale."

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