What is a Oregon resale tax exemption certificate?

A Oregon 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.

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.

You may have to report any use taxes if you resell an item you purchased. Similar to sales taxes, use taxes apply when merchandise is brought into your state and used there.

How do I get a Oregon resale tax exemption certificate?

When it comes to getting a Oregon resale sales tax exemption certificate, there are a few things that vendors need to know. First, vendors don’t need to request one from purchasers. The invoice should clearly identify 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.

The purchaser does not need to circle one of the bullet points on the form in order for it to be valid- simply filling out and signing the form is enough. Keep in mind though that the address on the certificate does not need to match up with your company’s location address; it just needs to have your proper business name listed and be current.

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.

A reseller certificate can be submitted by a business. The supplier or provider of the service/goods is not authorized to charge sales tax. If the final sales exceed $100, the responsibility for sales tax falls on the re-seller. 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.

The supplier is the owner of the certificate. All steps must be taken to ensure the certificate remains valid.