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Frequently Asked Questions About Purchases for Resale

1 - Is a resale certificate the same thing as an exemption certificate?

No. Exemption certificates are issued by the Comptroller of Maryland to qualifying nonprofit organizations and government agencies to make purchases for their own use. The exemption certificate is a wallet-sized card bearing the holder's eight-digit exemption number. Certificates issued to nonprofit organizations have a specific expiration date, presently September 30, 2017 for religious, educational and charitable organizations, cemeteries, credit unions, and volunteer fire companies or rescue squads and September 30, 2017 for certain veterans organizations and their auxiliaries and units. Certificates issued to government agencies have no expiration date. Organizations and government agencies presenting exemption certificates are exempt from the sales and use tax on purchases of materials and supplies to carry out their work. On the other hand, a resale certificate allows a person to make tax-free purchases for resale, not for use.



 
Links for Purchases for Resale FAQs
Taxpayer Assistance
Business Tax FAQs
Sales and Use Tax
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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