You might question if Illinois accepts out-of-state resale certificates if you’re an out-of-state vendor hoping to sell goods in Illinois without paying sales tax. Illinois does accept out-of-state sales certificates, to address your question. There are, however, a few requirements that must be fulfilled. The out-of-state vendor must first possess a legitimate resale certificate from their home state. Before the sale is made, this certificate must be given to the Illinois seller. The out-of-state resale certificate must then be maintained by the Illinois seller for their records.
The second requirement is that the out-of-state vendor register with the Illinois Department of Revenue. Filling out an Application for Registration with the Illinois Department of Revenue will enable you to do this. The out-of-state seller will receive an Illinois Business Tax Number (IBT) after registering.
You might be curious if you need to pay taxes on the products you are reselling in Illinois. If you sell those things in Illinois, the answer is that you must pay taxes on them. However, you can avoid paying sales tax on the goods you are reselling provided you have a current resale certificate.
It is legitimate to purchase goods and resell them. There are certain restrictions, though. For instance, you are not permitted to market stolen or counterfeit items. If you do, you risk facing legal repercussions.
You can ask the Illinois Department of Revenue for a copy of your resale certificate if you need one. Filling out a Request for Certificate of Registration or E99 Number form will allow you to achieve this. To fill out the form, you will need to supply your IBT number and other details.
What exactly is an E99 Number? Businesses that are not registered in Illinois but occasionally conduct business there are given an E99 number, a special identification number. This number is used to monitor the out-of-state seller’s sales and make sure they are adhering to Illinois tax regulations. You may need to apply for an E99 number if you occasionally sell in Illinois but are an out-of-state vendor.