Getting a resale certificate is an essential step in the sales process if you operate a business in Connecticut. Reselling products and services to customers who will pay sales tax is permitted by a resale certificate, which is often referred to as a resale permit or sales tax exemption certificate. A guide to obtaining a resale certificate in Connecticut is provided below.
You must fill out and submit an application to the Connecticut Department of Revenue Services (DRS) in order to receive a resale certificate there. On the DRS website, you can find the REG-17 form, which goes by that name. Make sure to provide all necessary information, such as your company name, address, and sales tax registration number.
You can send or submit the form online to the DRS after you’ve finished it. The application will normally be processed in two to four weeks. Your company will receive a resale certificate from the DRS if it is authorized, which you can use to make tax-exempt transactions.
In Connecticut, a sales and use tax permit and a resale certificate are two different things. A sales and use tax permit is a license that gives a company the right to charge sales tax to clients. However, when buying products and services to resell, businesses are exempt from paying sales tax if they have a resale certificate.
Certificates of out-of-state resale are not accepted in Connecticut. As a result, in order to make tax-exempt purchases as a business owner based in another state, you must submit an application for a resale certificate in Connecticut.
In Connecticut, a sellers permit is free. On all taxable purchases conducted in the state, nevertheless, firms must pay sales and use tax.
In conclusion, firms that want to purchase products and services for resale in Connecticut must first get a resale certificate. To prevent delays in the processing of your application, it is crucial to make sure you include all the necessary information while filling out the application form. Furthermore, it’s important to understand that a sales and use tax permit differs from a resale certificate and that companies established in other states cannot use those certificates in Connecticut.
A seller’s permit, also known as a sales tax permit or sales tax license, is a legal document that enables companies to offer goods and services to clients while simultaneously allowing them to keep the sales tax they owe. Any business in Connecticut that sells tangible personal property or taxable services must have a seller’s permit. The Connecticut Department of Revenue Services must be contacted for this permit.
In Connecticut, unless they receive a resale certificate, landscapers are required to collect sales tax on their services. They can buy products tax-free if they have a resale certificate, and they can then charge sales tax to their customers. However, they must charge sales tax on both their services and materials if they do not have a resale certificate.