what is resale certificate

A resale certificate is a signed document that indicates the purchaser's intention to resell the goods. It is usually provided by a retailer to a wholesale dealer, and it allows the purchaser to buy goods without paying sales tax on them, as the tax will be collected when the goods are resold to the end consumer. Manufacturers also issue resale certificates to suppliers of materials that become incorporated into the products they manufacture. The certificate typically includes the name and address of the purchaser, the seller, and a description of the property purchased for resale, among other elements. Different states may have specific requirements for resale certificates, and some may accept a state-issued certificate or a multi-state certificate. In Ohio, for example, businesses need to complete and present an Ohio Sales and Use Tax Blanket Exemption Certificate to the merchant from which they are buying the products to be resold