How To Obtain a State Resale Tax Number |
If you're looking into starting your own jewelry-making business, but haven't become official yet, this is a simple but major step along the way. A resale permit (sometimes called a seller's permit) allows your business to purchase items or services for resale without paying retail sales tax. Advantages & disadvantages of having a resale tax certificate.
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U.S. Residents Outside Washington State |
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Washington State Residents |
Washington State News:
- January 1, 2010: Washington State's resale certificate will be replaced with a seller’s permit, issued by the Department of Revenue. On that date, all existing resale certificates will become invalid and businesses in Washington State must pay sales tax if they don't have a new seller's permit. More information.
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Question: What if I don't get a seller's permit but need to make purchases for resale?
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Answer: As of January 1, 2010, buyers without seller's permits must pay retail sales tax on
their purchases, but can take a "Tax Paid at Source" deduction on their tax return, or request a
refund from the Department of Revenue.
- July 1, 2008: Washington State resale tax certificates no longer have to be renewed every four years. As of July 1, 2008, a business must renew its resale certificate only when a change in ownership requires a new tax registration.
Washington State Frequently Asked Questions:
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Question: Who issues Washington State resale tax numbers?
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Answer: The Washington State Department of Revenue.
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Question: How do I reach the Department of Revenue?
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Answer: Check our list of addresses & phone numbers for Department of Revenue offices across Washington State.
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Question: How much does a tax resale number cost?
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Answer: The reseller's permit which provides you with a tax number (a.k.a. registration number) costs nothing. However, there is a fee to register your business with the Department of Licensing, which you will need to do in order to obtain your seller's permit / tax number. The basic fee to register your business in Washington State is $15, as of October 2009. There might be additional fees, depending on your type of business.
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Question: When do I receive my resale tax number?
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Answer: If you go in person to the Department of Revenue, you will be issued a number right away. The official certificate will be mailed to you in a couple of weeks from Olympia. Alternately, you can call the Department of Revenue and ask for the forms to be mailed to you.
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Question: What does a resale tax number entitle me to?
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Answer: The resale number exempts you from paying taxes on purchases made in the state of Washington for items that will ultimately be used for resale. For example, you will not have to pay taxes on beads, wire, clasps, etc. used in making a finished piece of jewelry to be sold to someone else, with tax charged to that person. Note that taxes must still be paid on items that will not be resold. If you have a tax number you will also have to file your own sales tax reports with the state of Washington and pay the sales tax you have collected.
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Question: What do I do once I have my tax number?
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Answer: To be exempt from paying taxes on resale purchases from Rings & Things, you need to fill out a Rings & Things' resale certificate and mail or fax it to us (contact info is on the form). Why? Because Washington State law requires wholesale businesses (like Rings & Things) to keep signed resale certificates on file for our customers. If we do not have an up-to-date resale certificate for you, we have to charge you tax, even if you already have a tax number.
If you have not yet ordered from us, but are thinking about ordering some time in the next year, you might want to fill out the R&T certificate in advance. (Note that in order to complete this form, you need to have already set up your Washington State resale tax number).
Basically, the R&T resale form states that you (the buyer) certify you are purchasing items from us either:
- for resale in the regular course of business without intervening use in the regular course of business,
- for use as an ingredient or component part of a new article of tangible personal property to be produced
for sale, and/or
- as a chemical to be used in processing a new article of tangible personal property to be produced for sale.
Please note: This means a book, display rack, or set of tools, for your own use is taxable. If you are purchasing multiple tools or books for your customers, then we do not charge you tax, because you will charge tax when you re-sell them to your customers.
If you have more questions, please contact the Washington Department of Revenue.
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