Similar names for a resale certificate include reseller number, seller’s permit, exemption certificate, wholesale license, or reseller’s license. The purpose of a Sales Tax Exemption Certificate (called a Resale Certificate in many states) is to provide evidence of why sales tax was not collected on a transaction. The retailer will collect the sales tax from all their transactions and periodically (typically at the end of the month) send the sales tax to the state. When a customer (or end-user) purchases the dog toy, the retailer will charge sales tax to the customer based on the full price of the toy. The collected sales tax is then sent by the retailer to the Ohio Department of Taxation.įor example, when a pet store purchases dog toys from their supplier to sell in the store, the pet store owner won’t typically have to pay sales tax to their supplier. The sales tax will still be paid, but instead of the retailer paying sales tax, the retailer charges sales tax to their customer on the final value of the merchandise.
When retailers purchase products to resell, they often don’t pay sales tax to the supplier on the purchase. What is a Sales Tax Exemption Certificate? Learn more about what a resale certificate is, how to get one, and more. A resale certificate allows businesses to buy items without paying sales tax as long as they intend to resell the items. If you are a business owner in Ohio, you may want to get a Sales Tax Exemption Certificate in order to purchase goods for resale without paying sales tax. How to get a Sales Tax Exemption Certificate in Ohio
0 kommentar(er)
