What is a Virginia resale sales tax exemption certificate?

In order to make a purchase or rental that falls under this category, you must have a resale sales tax exemption certificate. This document is required to make such a purchase or rental, so it’s important to keep it on hand.

If you resell an item that you’ve purchased, you may need to report use taxes on the item. Similar to sales taxes, use taxes apply when merchandise is brought into your state and used there.

How do I get a Virginia resale tax exemption certificate?

When it comes to getting a Virginia 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. Secondly, the annual resale certificate is meant to be used on items that are tax exempt based on their usage. That means that if you purchase something for personal use but then later sell it as part of your business, you can use this certificate for those transactions.

To make the form valid, the purchaser doesn’t need to highlight any of the bullet points. All that is required is to fill out the form and sign it. The address on the certificate doesn’t have to match the location address of your company. It just needs to include your business name and be up-to-date.

An Annual Resale Certificate can be accepted by a selling dealer if it has only one owner and no d/b/a. This type of certificate is valid for any type of transaction (store, e-commerce). In addition, the selling dealer can continue to sell tax-exempt products (for example, on a charge account or cash on delivery basis) to this customer.

This certificate is also known as a tax-exempt certificate and it must be obtained by the business, that intends to buy products with an intention to re-sell. 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. Although a reseller’s certificate is usually valid within the state, there are some friendly states that accept certificates from other states to allow them to do business in their state.

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. Example – $100 worth of items are sold by business A to business B, and because a reseller certificate was provided by reseller b (2A) no sales tax is charged in this transaction., however, when the reseller will sell the product for say $200 sales tax must be taxed on $200

You have two options to share a reseller’s certification by the reseller. Either submit an existing reseller certificate or create a reseller certificate through third-party platforms like Avalara, Tax exempt, etc.