You might be wondering if a resale certificate is available if you own a business in New Mexico. The state of New Mexico does provide a resale certificate to eligible firms, thus the answer is yes. What a New Mexico resale certificate is, how to get one, how long they are good for, and what a buyer’s certificate is will all be covered in this article.
An official document known as a resale certificate enables companies to make purchases of products and services without paying sales tax. In essence, it eliminates the need for firms to pay sales tax twice on things they intend to sell to customers. Since it simplifies the purchasing process and guarantees that sales tax is only collected once, this is advantageous to both the company and the state.
Businesses must first register with the New Mexico Taxation and Revenue Department (TRD) in order to get a resale certificate. Businesses must complete an NTTC (Non-Taxable Transaction Certificate) form, which is available on the TRD website, after registering. The form must to be filled out and approved by the TRD before being submitted.
Resale certificates issued in New Mexico are good for a year from the date of issuance. Businesses that want to continue to be eligible for tax-exempt purchases must renew their certificate each year. Resale certificates must only be used for purchases that will be resold to clients, it should be noted. Penalties and fines may apply for the improper use of a resale certificate.
New Mexico additionally provides a buyer’s certificate in addition to the resale certificate. Businesses from other states who seek to avoid paying sales tax on purchases made from New Mexico merchants are given this certificate. Businesses must fill out an out-of-state transaction certificate (OTTC) form, which is also accessible on the TRD website, in order to get a buyer’s certificate. The certificate can be renewed annually and is good for one year.
In conclusion, New Mexico does offer a resale certificate to businesses who meet the requirements. Businesses must register with the TRD and submit an NTTC form in order to get a resale certificate. The certificate needs to be renewed yearly and is only good for one year. In addition, New Mexico provides a buyer’s certificate to businesses from other states who buy items from New Mexico sellers.