A resale certificate is a document issued by your state department of revenue. It certifies that your business makes purchases for manufacturing or resale.
Sales tax is intended to be collected on products sold to an end-user. As the final link in the supply chain, a customer purchasing a product for personal use will be charged sales tax based on their local state guidelines. The purchase of materials for resale or production purposes may be exempt from sales tax since they have not reached their final destination in the supply chain.
To become exempt from sales tax on purchases made with a supplier for business purposes, you will typically need to provide documentation, like a resale certificate, to them. They may have a submission form on their website like we do here!
If you are interested in becoming tax-exempt and you do not currently have documentation, you should contact your state or local department of revenue to apply for a resale certificate. For more information, click here.