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Tax-Exempt Purchases

Some organizations are entitled to make purchases that are exempt from sales tax. For example, if your company purchases items that will ultimately be sold to your customers you are considered a reseller, and your purchases are not subject to sales tax; this is because you presumably collect sales tax from your customers when you sell the items, and sales tax needs to be collected only once on the sale of an item.

→ The state in which your company does business will provide you with a resale number when you register to collect sales tax from your customers. For a complete list of state revenue agencies that can provide you with more information about registering a business in your state, seeState Tax Agencies,” p. 382.


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