What is a Kansas resale sales tax exemption certificate?

A Kansas resale sales tax exemption certificate is a document that allows businesses to purchase or rent property or products tax-free. It is good for one year, and businesses must renew it annually in order to continue enjoying the benefits of the exemption.

Certain purchases and rentals can be made without the need to pay sales tax. Some examples are nails, fabric, and wood incorporated into a chair; items which will be rented out as real property or tangible personal property; and services that will be resold.

A resale tax exemption certificate is required to rent or purchase a property that falls within this category. It is necessary to have this document in order to rent or purchase such a property.

How do I get a Kansas resale tax exemption certificate?

Kansas Vendors need to be aware of a few things when applying for a resale tax exemption certificate. For starters, the vendor does not need to get one from their purchasers- the invoice should already identify the exempt items. The annual resale certification is only valid for items that are exempt from tax based on their use. This means that you can use the certificate to purchase items for personal use and later sell them as part of your business.

As long as you have all the proper information filled out, the initial copy of the certificate is sufficient- there’s no need to send in multiple copies. So if you’re looking to get a resale sales tax exemption certificate, make sure to keep these things in mind!

This certificate, also known as a tax exempt certificate, must be obtained by any business that plans to purchase products with the intention of reselling. Example: If your business is A and you’re located in Florida, you will need a reseller certificate to be able to sell goods in Florida. Normally reseller’s certificate is valid within the state however there is no clear-cut answer, as a few friendly states do accept certificates from other states, to do business in their own state.

If a reseller certificate is submitted by the business, supplier, or the provider of the service or goods, is authorized not the charge any sales tax, and the liability of sales tax, then lies with the re-seller, based on the value of the final sales. Ex. $100 worth of products are sold by business A. The reseller certificate (2A) was submitted by reseller b (2A). No sales tax is charged on this transaction. However, if the reseller sells the product for $200 or more, the $200 sales tax will be added to the final sales.

There are 2 ways of sharing a reseller’s certificate by the reseller, this can be achieved, either through submitting an existing reseller certificate to the business or, by creating a reseller certificate on third-party platforms such as Avalara, Tax-exempt, etc.