Tax
Resale certificate
A resale certificate is a document a buyer provides to a supplier to purchase goods without paying sales tax, on the basis that the goods will be resold. The buyer becomes responsible for collecting sales tax on the eventual retail sale.
In plain terms: Paperwork that lets you buy stock tax-free because you will charge tax when you sell it.
Why it matters
Standard practice for anyone buying inventory. Suppliers must retain the certificate as evidence for their own audits, which is why they insist on a current one rather than taking your word.
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