If you just sent off or want to send off a business that will sell goods or services in Texas, you may need to get a trade approval, or a few of them, before you start working. This can save you a lot of time and money.
This step-by-step guide shows how to do the fairly easy thing.
What is a Certificate of Resale?
If you have a legal selling license for your business, you can buy things from a wholesaler without paying Texas sales tax. You may have to pay a use tax, though. This could save you a lot of money every year, depending on how big your business is.
The catch is that if you use a trade ticket to buy something, you have to buy it again and pay sales tax. If you don’t sell the things or receive sales tax, you could get a big fine or go to jail.
Keep in mind that a resale statement, which is also called a resale pass, can only be used by one seller. This means that each of your buyers will need a selling testimony.
You can’t use a trade ticket to buy something like a new computer for your business that you don’t plan to sell. This is a crime called “charge extortion.” You can only buy things without charging them if you plan to charge them later.
Distributors are not required to take trade certificates, and not all of them do. If the distributor didn’t pay the sales tax because there could be fake or expired licenses, they would be responsible for it.
To get a form for a selling license in Texas, you have to go to the Comptroller. How to Get a Certificate to Sell Something Again The state of Texas does not have a record of the proposal. Instead, the seller writes it down.
In some states, a dealer’s grant, which is also called a sales tax license, also acts as a reselling statement that all sellers must fill out. In most states, including Texas, you need a seller’s permission and a selling license for each of your sellers.
Your state will let you collect sales tax if you have a seller’s pass. You must have a sales tax license if you sell a lot of goods or personal property. In some places, a service provider like an attorney must also have a sales tax pass and collect state sales tax.
The word “selling” refers to things you buy to sell or parts you buy to make something to sell.
How to Finish up the Texas Resale Declaration?
1. In Texas, the Comptroller gives out licenses for resale. First, go to the page and do these simple things:
2. To get the form, go to the Sales and Use Tax Forms page, scroll down to Resale and Exemption Certificates, and click the 01-339 link.
First, put in the contact information for your company, which should include your Texas Sales and Use Tax Permit Number.
3. Enter the seller’s information and an account of the things you bought and your business activity.
4. Last but not least, sign the form, date it, and keep a copy for your notes.
For help, contact the Texas Controller at 800-252-5555.
What happens to a Texas Resale Certificate?
In Texas, certificates for selling never expire.
Even though it might be hard to get a resale license, it is needed in Texas. So, getting certifications for all of your providers will make sure that they follow all of the tax rules in your state.