Yes, Utah-issued exemption certificates are only good for a short time. Every three years, the state mandates that firms renew their certificates. To continue making tax-exempt purchases, you must get a new exemption certificate if your old one has run out.
You must submit Form TC 721 in order to apply for a resale number in Utah. You must fill out this form with information about your company, including your name, address, and tax ID number. You must also give a thorough explanation of the kinds of goods you want to offer as well as your projected monthly sales.
EIN (Employer Identification Number) is a form of tax identification number used by businesses to identify themselves to the IRS. People also inquire as to whether EIN is the same as tax ID. However, not every company needs an EIN. For instance, sole proprietors can use their Social Security number as their tax ID number.
How Do I Obtain a State Tax Identification Number? You must register your firm with the Utah State Tax Commission in order to get a state tax ID number there. This can be done by mail or online. After completing registration, you will be given a state tax identification number that you can use to make tax-exempt purchases for resale.
In conclusion, a resale number is a crucial tool for companies in Utah who sell physical things. Businesses can avoid paying sales tax on goods they intend to resell by getting a resale number and showing it to the seller. Businesses must fill out Form TC 721 and register with the Utah State Tax Commission in order to acquire a resale number. It’s critical to keep exemption certificates current because they are only good for three years in Utah. Finally, although though an EIN and a tax ID are the same thing, sole proprietors are not required to have an EIN and can use their Social Security number in place of one.
In general, you must gather and send sales tax on any transactions involving the resale of goods in Utah. Nevertheless, depending on the circumstances, there can be some exceptions or minimums that apply. For detailed advice on your resale activities, you are advised to speak with a tax expert or the Utah State Tax Commission.
If you intend to sell taxable things on Amazon, you will typically require a resale certificate. With the assumption that you would resell the items and charge sales tax to your clients, a resale certificate enables you to buy things without paying sales tax. You could have to pay sales tax on the goods you buy to sell on Amazon without a resale certificate, which can reduce your profits.