How To Get A Wyoming Certificate Of Exemption [Resale Certificate]
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 Wyoming Certificate of Exemption (often referred to as a Resale Certificate) to their vendor.
Learn more about what a Certificate of Exemption is, how to get one, and more.
What is a Certificate of Exemption?
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 Wyoming Department of Revenue.
For instance, when a specialty candle shop in Wyoming procures a selection of scented candles to sell in their establishment, by having a resale certificate, the shop owner doesn’t pay sales tax on this acquisition. The sales tax becomes relevant when a retail customer purchases the scented candle from the store. At this point, the retailer applies the sales tax to the full cost of the candle.
The specialty candle shop aggregates the sales tax from all their transactions over a specified period, typically at the end of the month. After the month wraps up, the shop transmits this collected sales tax to the state. This system effectively transitions the responsibility of paying the sales tax from the retailer to the retail customer, with the retailer serving as an intermediary, gathering and sending the tax to the state.
This system allows the bookstore to pass the cost of the sales tax onto the final consumer, rather than absorbing it as part of their operational expenses. It also ensures that the state collects the appropriate amount of sales tax on items sold within 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, they must first get a Wyoming Sales Tax License from the Wyoming Department of Revenue. The Sales Tax License is sometimes referred to as a seller’s permit, sales tax number, or sales tax license.
Is a Certificate Of Exemption the same as a Sales Tax License?
The Sales Tax License and Resale Certificate are commonly thought of as the same thing, but they are actually two separate documents. The Sales Tax License (also called a Sales Tax Permit) allows a business to sell and collect sales tax from taxable products and services in the state of Wyoming, while the Certificate Of Exemption allows the retailer to make tax-exempt purchases for products they intend to resell.
Related: How to register for a Wyoming Sales Tax License
After registering, a sales tax number will be provided by the Wyoming Department of Revenue. This number will be listed on the Certificate of Exemption.
Steps for filling out the SSTGB Form F0003 Wyoming Certificate of Exemption
Step 1 – Begin by downloading the Wyoming Certificate of Exemption SSTGB Form F0003
Step 2 – Indicate whether the Multistate Supplemental form is being attached. This is the second page of the exemption form. Several states joined together under the Streamlined Sales Tax Agreement to accept one resale form to make it easier for merchants to register.
Step 3 – Check whether the certificate is for a single purchase. Otherwise, the form is considered a blanket certificate which allows a buyer to purchase multiple times from a vendor without having to file a separate certificate.
Step 4 – Include the name, address, and State Tax ID Number. If there is no State Tax ID Number, enter the purchaser’s FEIN and Driver’s license number.
Step 5 – Enter the name and address of the seller.
Step 6 – Check the box that corresponds closest to the type of business the buyer is in.
Step 7 – Indicate the reason for exemption. Most retailers are going to check box G for Resale.
Step 8 – The purchaser will certify the property being purchased is for resale, including their title, phone number, and email address, then sign and date the certificate.
Wyoming Certificate Of Exemption FAQs
Where is the Certificate of Exemption filed?
The Certificate of Exemption is kept on file by the seller and is not filed with the state of Wyoming.
Does a Wyoming Certificate of Exemption Expire?
Wyoming Resale Certificates of Exemption do not expire.
How often is Wyoming sales tax due?
Most new businesses in Wyoming 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 filing frequency instead.
How much does a Wyoming Certificate of Exemption Cost?
There is no cost for a Certificate of Exemption in Wyoming.
Are sellers required to accept resale certificates?
Sellers are not required to accept resale certificates for tax exempt purchases, however, most do. If the vendor doesn’t accept the certificate, the buyer will have to pay sales tax on the merchandise being purchased.
In most cases, the buyer of the goods will be able to get a credit on a later sales tax filing.
What steps should a business take to accept a resale certificate?
When a business is presented with a sales tax exemption 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 Wyoming sales taxes on the seller.
Before accepting a sales tax exemption form from a buyer, the following steps should be taken.
– Review the resale certificate to make sure it is completely filled out.
– Verify the purchaser’s Wyoming Sales Tax License is valid and active by calling the Wyoming Department of Revenue at 307.777.5200.
– 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 are wanting to purchase office supplies tax-free, the seller should investigate further.
– Keep a file of all resale certificates in case of an audit.
Is a Certificate of Exemption the same thing as a business license?
No, a business license and a Certificate of Exemption are not the same thing. Each serves a different purpose and is used in different contexts.
A business license is a permit issued by a government agency that allows individuals or companies to conduct business within the government’s geographical jurisdiction. It is the authorization to start a business issued by the local government. Business licenses are typically required for most types of businesses and must be renewed periodically.
On the other hand, a Certificate of Exemption is used by businesses when purchasing goods intended for resale. This certificate allows a retailer to buy these goods without paying sales tax, under the assumption that the tax will be collected from the retail customer at the point of sale.
So, while a business license gives you the legal right to operate a business, a Certificate of Exemption enables a business to purchase items for resale without paying sales tax.
Alaska (no sales tax)
Delaware (no sales tax)
Montana (no sales tax)
New Hampshire (no sales tax)
Oregon (no sales tax)