How To Get A Rhode Island Resale Certificate [2023 Guide]

If a business sells taxable goods or services in Rhode Island, you will want to obtain a resale certificate from the Rhode Island Division of Taxation. This certificate allows you to purchase goods and services without paying sales tax at the time of purchase, as long as you intend to resell the items.

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 the Rhode Island Division of Taxation.

For example, when a specialty gourmet food store in Rhode Island purchases imported spices to sell in their store, by having a resale certificate (also called a sales tax exemption certificate in some states), the store owner won’t pay sales tax on the transaction. When a retail customer purchases the spice, the retailer will charge sales tax to their customer based on the full price of the product. The retailer will collect the sales tax from all their transactions and periodically (typically at the end of the month) send the 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.

Getting Started

Before a business starts selling products or providing taxable services, it must first get a Sales Tax Permit from the Rhode Island Division of Taxation. 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 Rhode Island Resale Certificate

Filling out the certificate is pretty straightforward, but it is critical for the seller to gather all the information.

If audited, the Rhode Island Division of Taxation requires the seller to have a correctly filled out 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 CRT-61 Rhode Island Resale Certificate

Step 1 – Begin by downloading the Rhode Island Resale Certificate
Step 2 – Include the buyer’s retail permit number
Step 3 – List what the buyer’s business sells
Step 4 – Enter the name of the seller
Step 5 – List the property being purchased from the seller
Step 6 – Describe the property being purchased from the seller
Step 7 – Enter the name and business address of the buyer
Step 8 – Last, the purchaser will sign and date the certificate. 

Rhode Island Resale Certificate Fillable Form

Rhode Island Resale Certificate FAQs