How to get a Maine Resale Certificate [2023 Guide]

When a business purchases inventory to resell, it can do so without paying sales tax.  In order to do so, the retailer will need to provide a Maine Resale Certificate to their vendor. 

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

What is a Resale Certificate?

When retailers purchase products to resell, they often don’t pay state sales tax to the supplier on the purchase. 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. The collected sales tax is then sent by the retailer to Maine Revenue Services.

For instance, when a bookstore in Maine procures a new collection of books to offer in their store, the bookstore owner can use a resale certificate to evade sales tax on that specific transaction. This is due to the fact that the books are not a final purchase, but items meant to be sold to the end consumer.

Later on, when a customer decides to buy a book from the store, the retailer will apply sales tax to the customer based on the full price of the book. This added cost is the sales tax that the state of Maine levies on retail transactions.

The bookstore, as the retailer, is responsible for collecting this sales tax from all their transactions. Then, typically at the end of each month, the bookstore sends the collected sales tax to the state’s tax authority.

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 Sales Tax Account from Maine Revenue Services. The Sales Tax Account is also referred to as a seller’s certificate, sales tax number, sales tax exemption certificate, or sales tax license.

Applying for the Resale Certificate

After registering for the Sales Tax Account, a Resale Certificate will be automatically issued if the business indicates they anticipate making over $3,000 annually.

Example Maine Resale Certificate

Maine Resale Certificate FAQs