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Sales Tax - Resale Certificate

What is a resale certificate?

A resale certificate is a tax form proving that you are a legitimate retailer or purchaser and are buying products to either resell or use as component parts of products you plan to resell. To use a resale certificate, you generally need to be registered to collect sales tax in at least one US state.

Please note

  • A resale certificate is required only if you resell goods in the United States.
  • A sales permit cannot be provided instead of a resale certificate.
 

Why do I need to upload a resale certificate to the API Portal?

When you provide a valid resale certificate to the API Portal, all of your purchases for resale are tax-free and you don’t need to pay sales tax in the states where you have provided a valid resale certificate. If you can’t provide a valid resale certificate to the API Portal in a state where you do purchases for resale, you’ll end up paying sales tax on those purchases. 

 

Can I use resale certificates from other states?

Many states will allow you to use an out-of-state resale certificate to complete the reseller certificate documentation. When you have a valid resale certificate in at least one state, you can use that certificate to make purchases tax free for resale in states where you are not sales tax registered. 

Please note all states have an economic nexus threshold for the state. Once the threshold is surpassed, out-of-state businesses are required to obtain a sales tax permit and collect and remit sales tax according to state and local laws.

If there are certain products that are purchased and not resold in a state where you have provided a valid reseller certificate, you will need to do a self-assessment and remit use tax on those given items.

However, there are nine states plus Washington, D.C. that don’t allow the use of out-of-state resale certificates:

  • Alabama
  • California
  • Florida
  • Hawaii
  • Illinois
  • Louisiana
  • Maryland
  • Massachusetts
  • Washington
  • Washington, D.C.

All these states require you to register for a sales tax permit in the states. 

The list of such states is subject to change, so we recommend asking your tax advisor to make sure you’re up-to-date on your tax information.

 

Who should I address the resale certificate to?

Resale certificates should be addressed to the company who is selling the goods.

You can find the necessary details listed below:

Gelato AS

Postbox 164

1325 Lysaker Norway

 

How to register for a sales tax permit?

Before you start collecting sales tax, you need to register for a sales tax permit with your state. You can find some information about registration for a Sales tax permit at this link:

https://blog.taxjar.com/how-to-register-for-sales-tax-permits/


Disclaimer: Gelato is not associated withTaxJar in any way. The information provided on this website is for informational purposes only and is not intended to be legal advice. Please consult a tax professional for specific tax guidance.


Which states does Gelato charge sales tax in?

Gelato charges sales tax in 10 states. 

The tax rate is different in each state, and within each state, it varies by county, city, and district.

  • California  
  • Georgia
  • Idaho
  • Illinois
  • Massachusetts
  • Nevada
  • Oklahoma
  • Pennsylvania
  • Texas
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