Texas Department of Revenue – Texas Business Sales Tax Resale Certificate Number

how to get a resale certificate in texas

Texas Sales Tax Resale Certificate Number

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3 Reasons for Obtaining a State Sales Tax Certificate are listed below.

  1. Texas law requires virtually every type of business to obtain a Texas Sales Tax Certificate Number. If you sell goods on eBay or the internet and ship them to someone in the state you reside, then you must collect sales tax from the buyer and pay the collected tax to your state on a monthly or quarterly basis. If you sell less than $4 million in annual sales, you do not have to collect or pay sales tax on out-of-state sales.
    • Texas Sales Tax Resale Certificate Example. If you live in Texas and you sell or ship something to someone else in Texas, then you must collect and pay sales tax to the State of Texas. But, if you sell the same item to someone outside the State of Texas, you need not charge sales tax, but must report the exempt

      tax sale to the State of Texas.

  2. You are able to purchase items without paying Texas sales tax. When you buy an item that you plan to resell, you can purchase it without paying Texas sales tax. Items must be for resale or qualified business use.
    • Texas Sales Tax Resale Certificate Example. If you go to a wholesaler and buy a computer you plan to sell [like eBay], you may purchase the item without paying state sales tax.
  3. Wholesale companies in Texas require a sales tax resale certificate. Virtually all legitimate wholesale companies will ask for a copy of your resale certificate before they will sell to you at wholesale prices. Also, wholesale companies, require a Texas state sales tax certificate number to open a commercial account.
    • Texas Sales Tax Resale Certificate Example. Wholesale trade shows and merchandise marts require a copy before letting you participate.

Source: online-tax-id-number.com

Category: Insurance

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