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Frequently Asked Questions About Purchases for Resale

8 - How can I protect myself from unnecessary tax liabilities?

You must clearly document the reason for all tax-exempt sales. Otherwise you will be held responsible for uncollected tax, plus penalty and interest. You should establish procedures to obtain valid resale certificates at the point of sale, and review your files periodically for accuracy and completeness.

Make certain that you do not allow resale exclusions on cash, check or credit card sales of less than $200 when you do not deliver the goods sold directly to the buyer's retail place of business.



 
Links for Purchases for Resale FAQs
Business Tax Types
Sales and Use Tax
Tax Information
Special Situations
Purchases for Resale
Purchases for Resale FAQs
  1 - Is a resale certificate the same thing as an exemption certificate?
  2 - What information should be included on a resale certificate?
  3 - What is my sales and use tax registration number?
  4 - Must I fill out a new resale certificate every time I make an eligible purchase?
  5 - What should I do with resale certificates my customers give me?
  6 - May I accept resale certificates from unlicensed out-of-state customers?
  7 - What about third-party drop shipments?
  8 - How can I protect myself from unnecessary tax liabilities?
 
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