How To Get A Nevada Resale Certificate [2023 Guide]
If you make purchases for resale, or intend to sell taxable items and services in Nevada, you need to apply for a Resale Certificate.
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 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 Nevada Department of Taxation.
For instance, when a jewelry store in Nevada orders a collection of diamond necklaces to sell in their store, by possessing a resale certificate, the jewelry store owner won’t pay sales tax on this transaction. This is because these diamond necklaces are not an end purchase for the store, but are inventory meant to be sold to the final user.
When a customer decides to buy one of these diamond necklaces from the store, the retailer will charge sales tax to the customer based on the full price of the necklace. This added cost is the sales tax that Nevada imposes on retail transactions.
The jewelry store, as the retailer, is responsible for collecting this sales tax from all their transactions. Then, typically at the end of each month, the jewelry store sends the collected sales tax to the state.
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.
Before a business starts selling products or providing taxable services, it must first get a Nevada Seller’s Permit from the Nevada Department of Taxation. The Seller’s Permit is sometimes referred to as a seller’s permit, sales tax number, or sales tax permit.
Is a Resale Certificate the same as a Seller’s Permit?
The Seller’s Permit and resale certificate are commonly thought of as the same thing, but they are actually two separate documents. The Seller’s Permit 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.
Learn how to register for a Nevada Seller’s Permit.
How to fill out the Nevada Resale Certificate
Filling out the certificate is pretty straightforward, but it is critical for the seller to gather all the information.
If audited, the Nevada Department of Taxation requires the seller to have a correctly filled out Nevada 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 the Nevada Resale Certificate
Step 1 – Begin by logging into your SilverFlume account or downloading the Nevada Resale Certificate
Step 2 – Enter the purchaser’s seller’s permit number
Step 3 – Indicate the general line of business of the buyer
Step 4 – Add the name of the seller
Step 5 – Describe the property that will be purchased
Step 6 – The purchaser will sign and date the certificate.
Nevada Resale Certificate Fillable Form
Nevada Resale Certificate FAQs
How much does a Resale Certificate cost in Nevada?
There is no cost for a Resale Certificate in Nevada.
Does a Nevada Resale Certificate Expire?
Nevada Resale Certificates are valid for five years.
How often is Nevada 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 Nevada 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 a tax exempt purchase, the buyer will have to pay sales tax on the merchandise being purchased. In most cases, a credit is available when filing the Nevada sales tax return.
What steps should a business take to accept a resale certificate?
When a small business is presented with a resale certificate, the tax compliance 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 Nevada 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 Nevada Business Permit Number is valid and active by visiting the Department of Taxation’s website.
– 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.
Alaska (no sales tax)
Delaware (no sales tax)
Montana (no sales tax)
New Hampshire (no sales tax)
Oregon (no sales tax)