Why Your Business Needs a New York Resale Certificate
Any business that sells goods within New York or online to customers located in New York is required to collect sales tax from the buyer. The Certificate of Authority gives you the right to collect tax on your taxable sales and to issue and accept most New York State sales tax exemption certificates. All businesses that collect sales tax in New York must pay taxes to the state, and are therefore required to file for a certificate, or may face a penalty.
Does my business require a Tax Resale Certificate?
You may need a Tax Resale Certificate if any of the following describe your business:
- You operate in New York and/or plan to sell or ship product to another party or customer in New York
- Your business purchases items for resale in New York state, including wholesale
- You sell goods at a trade show or merchandise mart
- You purchase materials that create a sellable product
- Your business provides rental property, including buildings and vehicles
- Your business provides certain installation, repair, and maintenance services as a part of your operations
- There has been a change in your organization - such as a change of hands in ownership
I do business online to customers located outside New York, do I still need to provide the state with my tax information?
Yes! Even if you do not charge sales tax to customers located outside of New York, you must report the exempt tax sale to the State of New York.
My business resells items that I purchase through wholesale - if I’m not paying taxes on wholesale purchases, why is a Tax Resale Certificate required?
All legitimate wholesale companies in New York require a sales tax resale certificate for purchases, and should require a copy of your resale certificate before they sell to you at wholesale prices as a commercial retailer.
Why do I need a Tax Resale Certificate if I sell goods at trade shows?
Many trade shows may require vendors to provide their Tax Resale Certificate before being approved to participate. Your certificate allows business representatives to purchase wholesale items, buy/rent property, and/or provide services tax free. How often you sell or how much you charge for goods and services does not determine whether you need to register for sales tax. For example, if you sell items at a craft fair only once a year, you are still required to register, because what you are selling is taxable in New York State.