What is a resale certificate?
A resale certificate is a signed document that indicates that the purchaser intends to resell the goods. It is usually provided by a retailer to a wholesale dealer. A business which is registered for sales and use tax can use a resale certificate only when the merchandise being purchased is to be resold by the business. A business cannot use a resale certificate to purchase merchandise that they will use and consume in the conduct of business.
Most states require certain elements in order for the resale certificate to be valid. These elements are:
• Name and address of purchaser
• Name and address of seller (This should be H&M Hennes & Mauritz, L.P, 300 Lighting Way, Suite 100, Secaucus NJ 07094)
• Registration number of purchaser
• Description of property purchased for resale
• Reason for exemption
• Statement that if the property is put to use in a taxable manner that the purchaser will remit the consumer’s use tax
• Date and Signature and Title of authorized individual at the purchaser
Note that some resale certificates expire. It is important to update certificates on a regular basis. When you have collected you resale certificates, or if you already have a resale certificate, it can be submitted to Creator studios by uploading it in My Studio.