How to get a Kansas Resale Certificate (Resale Exemption Certificate)

A Kansas Resale Exemption Certificate is a document that allows a business to purchase goods and services tax-free from suppliers for the purpose of reselling those goods and services. The certificate is also sometimes referred to as a “resale permit” or a “reseller’s permit.”

Learn more about what a Resale Exemption Certificate is, how to get one, and more.

What is a Resale Exemption Certificate?

When retailers purchase products to resell, they often don’t pay sales tax to the supplier on the purchase. The sales tax will still be paid, but instead of the retailer paying the state sales tax, the retailer charges sales tax to their customer on the final value of the merchandise. The collected sales tax is then sent by the retailer to the Kansas Department of Revenue.

For instance, when a grocery store in Kansas purchases goods like produce, canned goods, or baking supplies from a distributor to sell in their store, by having a resale certificate, the grocery store owner won’t pay sales tax on these transactions. When a customer purchases groceries, the retailer will charge sales tax to the customer based on the full price of the items.

Throughout the course of the business day, the grocery store will accumulate sales tax from all their transactions with customers. Periodically, typically at the end of the month, the grocery store owner will collect all the sales tax that has been charged to the customers and send it to the state of Kansas. In this way, the sales tax is effectively paid by the final consumer.

The purpose of the certificate is to provide evidence of why sales tax was not collected on a transaction. Similar names for a resale certificate include reseller number, seller’s permit, exemption certificate, wholesale license, or reseller’s license. In order for the supplier to allow the tax-exempt purchase, the seller needs proof the buyer intends to resell the product by providing a valid resale certificate.

The sales tax exemption is only intended to be used for inventory that will be resold and not intended for the tax-free purchase of items used in normal business operations such as paper, pens, etc.

Getting Started

Before a business starts selling products or providing taxable services, it must first get a Kansas Sales Tax Registration Number from the Kansas Department of Revenue. The Sales Tax Permit is sometimes referred to as a seller’s permit, sales tax number, or sales tax license.

How to fill out the Kansas Resale Exemption Certificate

Filling out the Kansas Resale Exemption Certificate (Form ST-28A) is pretty straightforward but is critical for the seller to gather all the information.

If audited, the Kansas Department of Revenue requires the seller to have a correctly filled out ST-28A Resale Exemption Certificate.  Without it correctly filled out, the seller could end up owing sales taxes that should have been collected from the buyer in addition to penalties and interest.  

Steps for filling out the ST-28A Kansas Resale Exemption Certificate

Step 1 – Begin by downloading the Kansas Resale Exemption Certificate Form ST-28A 
Step 2 – Identify the seller’s name, business address, Sales Tax Registration Number, and a general description of what products or services the business sells
Step 3 – Describe the tangible personal property or services the buyer will be purchasing
Step 4 – Identify the name and business address of the buyer
Step 5 – The purchaser signs and dates the certificate. 

Kansas Resale Exemption Certificate FAQs