A resale certificate is a crucial document used by businesses to make tax-free purchases of products and services. Businesses in Virginia are required to complete a resale certificate to demonstrate to the vendor that they are buying the items with the intention of reselling them. It’s crucial to know how to accurately fill out a resale certificate if you own a business in Virginia.
Step 1: Save the Virginia Resale Certificate to your computer. A resale certificate is available for download on the Virginia Department of Taxation’s website. https://www.tax.virginia.gov/sites/default/files/taxforms/exemption-certificates/any/st-10-any.pdf is where you can download the form. Call the Virginia Department of Taxation to request a copy of the form.
You must provide your firm details in the first area of the resale certificate. Your business name, address, tax ID number, and the kind of business you run must all be provided.
You must include the vendor’s name and address in the second section of the resale certificate if you are buying products or services from them. Additionally, you ought to include the purchase date.
Step 4: Specify the Goods You’re Buying You must include a description of the things you are buying in the third section of the resale certificate. You must give a thorough description of the things, together with their quantity and cost.
What Products are Sales Tax Exempt in Virginia?
Certain goods are free from sales tax in Virginia. Prescription drugs, some foods, and particular apparel items are a few examples of excluded items. It is crucial to remember that some of these items can be subject to regional taxes.
There are no plans to increase the sales tax in Virginia after 2021. The state assembly might, however, still decide to raise the tax in the future.
A document known as an exemption certificate enables companies to make purchases of goods and services without paying sales tax. Resale certificates, exemption certificates for organizations, and exemption certificates for governmental institutions are just a few of the different kinds of exemption certificates available in Virginia.
In Virginia, a seller’s permit is required if you plan to sell tangible things. This covers online product sales. You do not require a seller’s permit if you are solely selling services. If you’re unsure whether you need a seller’s permit, you should get clarification from the Virginia Department of Taxation.
Finally, completing a Virginia resale certificate is a simple procedure. You can make sure you’re appropriately filling out the certificate and avoiding unauthorized sales tax charges by adhering to the above-described instructions. It’s also critical to comprehend what an exemption certificate is, which things are exempt from Virginia’s sales tax, and whether the sales tax rate is increasing. Last but not least, a seller’s permit is a requirement if you are selling tangible things in Virginia.
You must submit an application for a Virginia Sales and Use Tax Certificate of Registration to the Virginia Department of Taxation in order to obtain a wholesale license there. Using this certificate will enable you to buy things tax-free so you can sell them. The certificate can be obtained for free and applications can be submitted online or by mail. Every two years after you earn your certificate, you must renew it.