Is resale number same as tax id

Q: Is resale the same as Ein?

Tax ID vs. Even though its important for your taxes, your resale number isnt the same as a tax ID number. Your businesss TIN goes on federal tax returns, and if you need to pay state taxes on your business income, you can apply for a state TIN. The resale number involves state sales tax.

A Certificate of Registration or License allows you to do business in the State of Illinois as a retailer, a reseller, or a provider of services or goods that makes you responsible for taxes. It identifies the taxes for which you are responsible and provides your Illinois Account ID or License Number. It is determined by statute which tax types receive a Certificate of Registration and which receive a License.

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Is resale the same as Ein?
Is a w9 the same as a resale certificate?
Is the NY sales tax ID same as Ein?
Is an ein the same as a tax ID?

A Certificate of Resale is a statement signed by the purchaser that indicates the merchandise purchased is for resale purposes only, not a sale to an end user, and therefore no tax is due. A completed and signed Form CRT-61, Certificate of Resale, is a valid Certificate of Resale. Other forms or statements may be used, but only if they contain the same information as Form CRT-61.

A tax-exempt number is a number assigned to qualifying non-profit organizations that they can present which allows them to purchase items exempt from tax. This number begins with “E99” and is followed by six digits (E99XX-XXXX).

A resale certificate is a signed document that indicates that the purchaser intends to resell the goods. It is usually provided by a retailer to a wholesale dealer. In addition, manufacturers issue resale certificates to suppliers of materials that become incorporated into the products they manufacture. In some states, resale certificates are also used to purchase taxable services that become a part of property for resale.

Resale certificates are usually provided in a “blanket” form. This means that the resale certificate applies to all items purchased from the vendor.

States that allow for resale exemptions either accept a state-issued resale certificate or, in some cases, a multi-state certificate. To find the resale certificate for a specific state, you can visit the Department of Revenue website for that state. Alternately, you can perform a Google search for the state’s resale certificate.

Some states will accept the Multistate Tax Commission’s Uniform Sales & Use Tax Certificate – Multijurisdiction Form or the Streamlined Sales Tax Exemption Certificate. Still others will allow a statement of resale on the purchase order.

A business which is registered for sales and use tax can use a resale certificate only when the merchandise being purchased is to be resold by the business. A business cannot use a resale certificate to purchase merchandise that they will use and consume in the conduct of business.

Any merchandise obtained upon resale certificate is subject to use tax if it is used or consumed by the purchaser in any manner, and must be reported and the tax paid thereon direct to the appropriate jurisdiction.

Most states require certain elements in order for the resale certificate to be valid. These elements are:

Name and address of purchaser
Name and address of seller
Registration number of purchaser
Description of property purchased for resale
Reason for exemption
Statement that if the property is put to use in a taxable manner that the purchaser will remit the consumer’s use tax
Date and Signature and Title of authorized individual at the purchaser

Note that some resale certificates expire. It is important to update certificates on a regular basis. However, it is recommended to retain the prior certificate until the period it covers has been closed for audit purposes.

It is also important to realize the difference between a resale certificate and a resale license. A resale license is issued to businesses and individuals who sell goods and services subject to sales tax. A resale certificate is the form you issue to suppliers, and it includes a spot for your resale license number.

Looking for more information? Check out the following resources

Download our Important Concepts in Sales Tax Administration whitepaper to learn about best practices for resale certificates
Learn about exemption certificates with our What is an Exemption Certificate and Who Can Use One? FAQ
Learn essential sales tax concepts with our Sales Tax 101 webinar on-demand

Is resale the same as Ein?

Tax ID vs. Even though it's important for your taxes, your resale number isn't the same as a tax ID number. Your business's TIN goes on federal tax returns, and if you need to pay state taxes on your business income, you can apply for a state TIN. The resale number involves state sales tax.

Is a w9 the same as a resale certificate?

Purchasers submit resale certificates to vendors, who typically initiate the request. The person or company making the payment, rather than the person receiving the payment, typically requests the Form W-9. The W-9 relates to federal income tax, while resale certificates relate to state sales tax.

Is the NY sales tax ID same as Ein?

A sales tax number is also known as an EIN number (employer identification number), or as a federal tax identification number. The following article will outline what an EIN number is, why businesses need one, and how to get a sales tax number.

Is an ein the same as a tax ID?

An Employer Identification Number (EIN) is also known as a federal tax identification number, and is used to identify a business entity. It is also used by estates and trusts which have income which is required to be reported on Form 1041, U.S. Income Tax Return for Estates and Trusts.