Nevada: Resale Certificates v. Sales Tax Permits
- Tax Tips
- May 13, 2014 | Gail Cole
The Nevada Department of Taxation fields questions day in and day out. Lately, many of those questions have pertained to resale certificates and sales tax permits. It seems that numerous Nevada wholesalers are requesting copies of customers’ sales tax permits when they should be collecting resale certificates.
The department reminds in a recent tax notice that the two forms “are not interchangeable.”
Sales tax permit
All Nevada sellers must register with the state and obtain a sales tax permit for “the privilege of selling tangible personal property at retail.” In obtaining a sales tax permit, a seller “agrees to act as an agent for the State for the collection and remittance of Sales and Use Taxes to the Department as prescribed by law.” Permits must be posted at each business location.
Sellers that purchase taxable goods for resale should obtain a resale certificate. A buyer purchasing an item for resale must submit a valid resale certificate to the seller at the time of purchase. “The certificate represents the purchaser’s assurance that the property is for eventual resale and the tax will be charged then.” Resale certificates prevent double taxation.
In Nevada, resale certificates “should be updated every two to three years.” Sellers without current, valid resale certificates on file for all applicable customers may be held liable for the uncollected sales and use tax.
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