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What are the tax responsibilities of a wholesaler?
What are the tax responsibilities of a wholesaler?
Updated over a week ago

Retailers who purchase products for resale without paying sales tax must provide a resale certificate (reseller’s license) to the wholesaler.

This document proves that the retailer is registered with the state’s taxing authority to collect sales tax.

If a retailer fails to provide a resale certificate, a wholesaler can (and should) refuse to sell to them without also charging sales tax.

A resale certificate is often the very same document as a sales tax license.

Just like with everything sales tax related, resale certificates and the laws surrounding them vary by US state.

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