How to get a resale license in alabama

This is what is known as remote seller nexus. Another closely related permit is an Alabama resale certificate -also known as a sales tax exemption certificate- which grants your business the benefit of being able to buy goods without paying local sales tax on them. When doing this, you are the primary party responsible for collecting the tax from the customer when you sell the item. It is not required to complete a resale certificate form.

Instead, it is only necessary to provide a copy of the Alabama Sales Tax License. You can either fill out a paper application and file it in person or you can simply submit an online application.

Alabama Alabama. To get a better understanding of how this all works, here are two examples: If you are in Alabama and you sell to another resident of the state, you have to charge tax. Also if you are selling to out of state residents, you are exempt from charging tax, but must report these the state of Alabama.

The certificate also allows you to buy items without paying sales tax that you will be reselling. If you are looking to start a wholesale company, you will be required to have a resale certificate before you can open a commercial account.

And if your customer wants to buy items for resale, you just need to confirm that they are registered to collect sales tax. In Alabama, anybody who is registered for an Alabama sales tax permit can buy items they intend to resell, but giving a copy of your Alabama sales tax license to your vendor.

Unlike many other states, you are not required to fill out a resale certificate. Instead, just a copy of your sales tax license will do the trick. Alabama even allows retailers to accept out-of-state resale certificates.

Keep in mind that you are only allowed to buy items you intend to resell without paying sales tax. On the other hand, you are not allowed to buy coffee, paper, office furniture, etc. If a customer says they are a reseller and wishes to buy items from you tax free, you are required to confirm that they have a valid sales tax permit. You can find out how to verify sales tax permits from every state here.