Why Register For A Tax Resale Certificate In Massachusetts?

Massachusetts Is A Great Place For New Businesses

Massachusetts is known for its healthy economic growth. This state recovered strongly from the financial crisis of 2008 and is a fantastic place for small businesses. The following reasons contribute a large part to Massachusetts’ success:

  • Strong Education Systems
  • The Tech Industry
  • A Nurturing Community


It is no secret that Massachusetts is home to some of the finest universities in the nation, including Harvard and MIT. However, these are just two of the top names of the many other colleges that also graduate a crop of highly skilled and educated workers. This gives small businesses an incredibly talented diverse pool of employees.

The Tech Industry

Boston has often been called the Silicon Valley of the East. The city is home to a very powerful and robust tech industry. Massachusetts is known to nurture innovation and be welcoming to new ideas in business. This helps create well-paying jobs and translates into more prosperity for the local economies. This has helped the state become one of the top five places for tech in the country.

A Nurturing Community

Massachusetts has created a community where small businesses rarely feel like they are alone. There are support networks all over the state that help small businesses connect with mentors or industry supporters through thriving online communities. Massachusetts also has a lot of state grants and incubator programs that nurture the growth of small businesses.

The communities also go out of their way to stay true to local small businesses instead of supporting some of their larger competitors. The towns take pride in their locally sourced economic opportunities and want to help their neighbors grow on a steady path to great success.

What Is A Tax Resale Certificate?

Massachusetts is a great place for small businesses but does have a fairly high state sales tax. One of the best things a savvy entrepreneur can do is register for a Tax Resale Certificate to save money on unnecessary taxes.

A tax resale certificate allows you to not pay sales tax on items that you simply decide to resell. This will also apply to supplies that are getting to be utilized in products that you simply will resell, like wood for a cupboard.

It is critical that you simply understand that tax resale certificates also can only be used on items that will be resold. Office supplies, like new computers for your employees, wouldn’t fall into the category of retail. It can be considered fraud to not pay sales tax on these things.

If this is confusing for you, just consider tax resale certificates as state tax exemption certificates. Some states actually call them exemption certificates or reseller’s permits.

Getting Started In Massachusetts

Businesses in Maryland that provide any type of taxable goods and services must first register as a vendor and get a Sales Tax Permit from the Massachusetts Department of Revenue. This permit is also known as a seller’s permit, sales tax number, or sales tax license.

Is The Tax Resale Certificate The Same As A Seller’s Permit?

Even though a tax resale certificates are called reseller’s permits in some states, it is important not to confuse them with seller’s permits. A seller’s permit allows a retailer to charge tax on items that they are going to sell to a customer. A tax resale certificate allows you to buy items that are intended for resale without paying a sales tax on those items.

Does A Vendor Have To Accept My Tax Resale Certificate?

It is extremely important to a retailer’s bottom line that they do not pay sales taxes on goods if there is a possibility that the tax can be exempted on a state level. However, it is also crucial to understand that a wholesaler is not required to accept your tax resale certificate in some states. 

What If A Customer Presents Me With A Tax Resale Certificate? 

A customer can also present a tax resale certificate to you as a retailer and it is your discretion of whether or not you want to exempt them from the required sales tax. It is always a good idea to check on the certificate because you will be held responsible, if the certificate is expired or fraudulent, for the unpaid state sales tax. Verification is key in making sure that the correct due diligence has been completed to authenticate the tax resale certificate.

Remember To Verify Any Tax Resale Certificate Presented To You

A vendor can refuse a tax resale certificate. This is because the vendor will be the one liable to the state government should anything be remiss. That is why you should always take the following steps to assure that anything presented to you is valid.

  • Goods you or your employees purchase for private use.
  • Goods your business gives away for free of charge or as gifts.
  • Goods your business uses to conduct business, like office supplies, equipment, etc.
  • Goods your business rents to be used and not for re-leasing.

Make Sure You Understand The Specific Guidelines Of Your State

A tax resale certificate is a wonderful way a business can avoid unnecessary taxes. However, we understand that there are a lot of rules and regulations, which can be very confusing to any business owner.

That Is Why We Are Here To Help

It is understandable that all this information can be very daunting. Not correctly understanding sales tax and the benefits of a tax resale certificate can lead to a great deal of trouble. A retailer could lose out on extremely beneficial sales tax exemptions status. A savvy business owner will understand that having a tax resale certificate will save them a good deal of money but leave the actual headache of registration to someone else.

On the other hand, misunderstanding and not paying the correct sales tax to a state government could very much hurt a business’s standing and reputation. At Tax Resale Certificate,  we make the process as easy as possible. Just take advantage of our user-friendly interface to help take the headache of applying for a tax resale certificate off your plate.