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How to get a Nebraska Resale Certificate [2023 Guide]

How to get a Nebraska Resale Certificate [2023 Guide]

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How to get a Nebraska Resale Certificate [2023 Guide]

How to get a Nebraska 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 Nebraska 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 sales tax to the supplier on the purchase. The state 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 the Nebraska Department of Revenue.

For example, when a bicycle shop in Nebraska orders a new batch of bicycles to sell in their store, by possessing a resale certificate, the shop owner won’t pay sales tax on this transaction. This is because these bicycles are not a final purchase for the shop, but are inventory intended to be sold to the ultimate customer.

When a customer decides to buy one of these bicycles from the shop, the retailer will charge sales tax to the customer based on the full price of the bicycle. This extra charge is the sales tax that Nebraska imposes on retail transactions.

The bicycle shop, in its role as the retailer, is obligated to collect this sales tax from all of its transactions. Then, typically at the end of each month, the bicycle shop sends the accumulated 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 Nebraska Sales Tax ID Number (sometimes referred to as a Sales Tax Permit) from the Nebraska Department of Revenue.

Is a Resale Certificate the same as a Sales Tax ID?

The Sales Tax ID Number and Resale Certificate are commonly thought of as the same thing, but they are actually two separate documents. The Sales Tax ID Number allows a business to sell and collect sales tax from taxable products and services in the state, while the Resale Certificate allows the retailer to make tax-exempt purchases for products they intend to resell.

Related: How to register for a Nebraska Sales Tax ID Number

How to fill out the Nebraska Resale Certificate

Filling out the Nebraska Resale Certificate (Form 13) is pretty straightforward but is critical for the seller to gather all the information.

If audited, the Nebraska Department of Revenue requires the seller to have a correctly filled out Form 13 Resale 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 Form 13 Nebraska Resale Certificate

Step 1 – Begin by downloading the Nebraska Resale Certificate Form 13 
Step 2 – Identify the name and business address of the purchaser
Step 3 – Identify the name and business address of the seller
Step 4 – Indicate whether the certificate will be used for a single purchase or blanket purchases.  If the retailer is expected to be purchasing items frequently from the seller, instead of completing a resale certificate for every invoice, the blanket certificate section should be used.
Step 5 – Describe the items that will be purchased from the seller.
Step 6 – Check the buyer’s type of business (wholesaler, retailer, manufacturer, or lessor) and describe the type of products sold.
Step 7 – Provide the Sales Tax Number
Step 8 – If the purchase is in a classification that is exempt from sales taxes (many agriculture products and equipment, motor fuels, etc.), fill out this section. 
Step 9 – The purchaser will certify the property being purchased is for resale and sign and date the certificate. 

Fillable Form 13 Nebraska Resale or Exempt Sale Certificate

Fillable Form 13 Nebraska Resale or Exempt Sale Certificate

Nebraska Resale Certificate FAQs

How much does a Resale Certificate cost in Nebraska?

There is no cost for a Nebraska Resale Certificate.

Does a Nebraska Resale Certificate Expire?

In Nebraska, provided the seller has a recurring relationship where sales occur at least once every 12 months, the does not expire Nebraska Code 1-014.07

How often is Nebraska sales tax due?

Most new businesses are set up to file and pay sales and use tax monthly, but depending on the amount of tax collected, your business may have a quarterly or annual filing frequency instead.

Where do I file the Nebraska Resale Certificate?

The resale certificate is kept on file by the seller and is not filed with the state.

Are sellers required to accept resale certificates?

Sellers are not required to accept resale certificates, however, most do.  If the vendor doesn’t accept the certificate for tax exempt purchases, the buyer will have to pay sales tax on the merchandise being purchased. In most cases, a credit is available when filing the Nebraska sales tax return. 

What steps should a business take to accept a resale certificate?

When a business is presented with a resale certificate, the burden of proof is on the seller to verify that the buyer’s information is correct and to keep these records. Failing to verify this information may put the liability of paying Nebraska sales taxes on the seller.

Before accepting a resale certificate, a seller should:

– Review the resale certificate to make sure it is completely filled out. 
– Verify the purchaser’s Nebraska account ID or Nebraska resale number is valid and active by visiting MyTax Nebraska and using the Verify a Registered Business tool.
– Sellers are also responsible for examining the certificate and evaluating whether the goods sold are reasonably consistent with the purchaser’s line of business.  For example, if the buyer’s business is a car dealership, but they want to purchase office supplies tax-free, the seller should investigate further.  
– Keep a file of resale certificates. 

How to get a Nebraska Resale Certificate [2023 Guide]

How to get a Nebraska Resale Certificate [2023 Guide]

Greg Bouhl

Greg Bouhl

Welcome! My name is Greg Bouhl, and I am a serial entrepreneur, educator, business advisor, and investor.

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