Resale certificates

[rockrive_32]

Can anyone tell me how eBay would issue a resale certificate and also, what is it ? Thanks

[wastingtime101]

A resale certificate is something you need to get from your state that exempts your business from paying state sales tax. It's not something eBay provides.

If you have a resale certificate you can add it to your eBay account:

https://www.ebay.com/help/buying/paying-items/paying-tax-ebay-purchases?id=4771#section2

There's also a retailer-issued resale certificate that basically says you intend to resell goods and it's documentation you can provide to a wholesaler. Is that what you're asking about? If so, eBay does not issue them.

Read more here: https://www.salestaxinstitute.com/sales_tax_faqs/resale_certificate

[monica-sells]

nothing to add here...

@wastingtime101 detailed the steps to take if that is your inquiry.....

as an additional consideration...I don't think all states allow a resale certificate for an individual entity......

[thesis_right]

@wastingtime101 i use my account for personal and business purchases. I have a business resale cert (aka reseller permit in WA) but only some of my ebay purchases would be tax exempt. once a cert is uploaded and approved, can i select whether or not tax is applied to each purchase? or will i end up not paying tax on everything i purchase from then on?

[janet9988]

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@thesis_right wrote:

@wastingtime101 i use my account for personal and business purchases. I have a business resale cert (aka reseller permit in WA) but only some of my ebay purchases would be tax exempt. once a cert is uploaded and approved, can i select whether or not tax is applied to each purchase? or will i end up not paying tax on everything i purchase from then on?

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You will need to create a second account to keep the exempt/ business purchases separate.

[mam98031]

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@thesis_right wrote:

@wastingtime101 i use my account for personal and business purchases. I have a business resale cert (aka reseller permit in WA) but only some of my ebay purchases would be tax exempt. once a cert is uploaded and approved, can i select whether or not tax is applied to each purchase? or will i end up not paying tax on everything i purchase from then on?

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@thesis_right 

No it doesn't work that way.  The account you have the resale certificated filed with Ebay on is the account that will not be charged sales tax on anything you purchase on the site.  

To make a purchase that you are suppose to pay sales tax on, you would need to use a separate account for those purchases.

[mam98031]

@rockrive_32 

You would need to be registered with your states Dept. of Revenue as a little business first.  You will then need to report your income to your state, often times for small sellers it is only once a year, but check with your state for instructions on how you do this.

Once you are set up with your state, you can then request a Reseller's Certificate so you can purchase things you will be selling or things that become part of what you are selling sales tax free.  Many states also allow shipping supplies to be purchased tax free, but check the rules for your state to be sure.

https://revenue.iowa.gov/permits-licensing/business-permit-registration

Then once you have the certificate, you can send it to Ebay via the link below.

https://ocswf.ebay.com/mudcwf?deptName=IST

[thesis_right]

Not surprised, thanks for confirming.

[ryry-jj]

You cant separate them between personal and business, tax exempt and not tax exempt on one account.   In order to protect your resale license you need to separate your accounts.  It's a huge red flag for an audit when you dont