What is sales tax registration?

Sales tax registration is the process of obtaining a permit from a state or local tax authority, allowing a business to collect and remit sales tax on taxable goods or services.

Example: As a business owner, you sell goods to consumers. You obtain these goods from a wholesaler and utilize your Sales Tax Certificate to avoid paying taxes during your purchase.

When you resell these purchased goods to an end-consumer, you charge the consumer the sales tax and then remit the collected sales tax on a quarterly basis to the respective state where the sales are made.