A Florida Resale Certificate is an authorization that enables an organization to purchase tax-free goods and services from suppliers in order to resell those goods and services. The retailer must provide their vendor with a Florida Resale Certificate to use one. When retailers buy products to sell back, they frequently do not contribute sales tax to the supplier.

The sales tax remains to be compensated, but rather than the retail outlet paying it, the retailer will charge the customer sales tax on the total balance of the products. The retailer then sends the sales tax collected to the Florida Department of Revenue.

The certificate aims to offer evidence as to why sales tax was not obtained on a transaction. Resale certificates are also known as reseller numbers, seller’s permits, exemption certificates, wholesale licenses, sales tax exemption certificates, reseller’s permits, and reseller’s licenses. To enable tax-exempt buying, the seller requires proof that the customer plans to sell back the item by offering a valid property sales certificate.

The sales tax deduction only aims to be used for resale inventory and not for the tax-free buying of products used in everyday company activities, such as paper, pens, etc.

How to get a resale certificate in Florida?

Each state will have its procedure for obtaining a resale certificate. Regardless, they all have something similar. Typically, the first step is to get a sales tax license from the state tax authority. You should look for and fill out the resale certificate. Each state will almost always provide a certificate. In many instances, any type is acceptable as long as the correct information is provided. In the event of an audit, the paper will be managed by the seller.

Some states established an environment that allowed sellers to conduct business across state lines. The Multistate Tax Commission was established to simplify the administration of sales taxes (MTC). This commission produced one resale certificate that is accepted in all participating states. The “Uniform Sales and Use Tax Exemption Certificate” is what it’s called.

How can you use a Florida resale certificate?

Using a Florida resale certificate will allow you to avoid paying sales tax on purchases made for resale in the territory of Florida. Remember that you should only utilize your resale license to purchase items you intend to sell; any other utilization of a resale certificate by a person is typically considered illegal.

In Florida, using a resale certificate is pretty simple. After registering for a Florida sales tax permit, you can photocopy one from your account on the Florida Department of Revenue webpage. You will not be required to sign the printed copy because it will be distinctive to your company and will prove that all items or services bought will be sold back or rented.

Remember that you must collect tax from your Florida customers if you have a Florida sales tax license.

Things to remember before having the resale certificate.

As you proceed with obtaining resale certificates, bear the following points in mind.

The types of resale certificate documentation suppliers will accept are yet to be well known. In states where out-of-state resale certificates are obtained, suppliers have been known to refuse them and demand that their clients apply for an in-state sales tax permit.  Thankfully, the majority of suppliers do not operate in this manner.

Reselling products is typically the only use allowed for resale exemption certificates. Many states have unique forms that can be used for the various exemption types. Please be aware that exemptions requested on incomplete forms may be deemed invalid.

Resale certificates ultimately expire in many states. This indicates that you might have to re-fill out the form every one to five years. Resale certificates expire in different ways depending on the state. It is your obligation to remember when your resale certificates expire.