What is a Mississippi resale tax exemption certificate?

A Mississippi resale tax exemption certificate allows businesses to buy or rent property or products without having to pay tax. The certificate is valid for one year and must be renewed annually by businesses to maintain the exemption.

There are certain purchases or rentals that can be made without paying sales tax. You can use nails, fabric and wood to make a chair, or items that you will rent out as tangible personal property, real property, or services.

You may have to report any use taxes if you resell an item you purchased. Use taxes are similar to sales taxes but apply only when merchandise is brought into your state for use there–not when it’s sold.

How to get a Mississippi resale sales tax exemption certificate??

When it comes to getting a Mississippi resale sales tax exemption certificate, there are a few things that vendors need to know. For starters, the vendor does not need to get one from their purchasers- the invoice should already identify the exempt items. Secondly, the annual resale certificate is meant to be used on items that are tax exempt based on their usage. This means that you can use the certificate to purchase items for personal use and later sell them as part of your business.

The initial certificate will suffice as long as all information is correct. There’s no need for you to send multiple copies. These are the things to remember if you want to obtain a certificate exempting resale tax.

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.