TEXAS SALES TAX 101: What Are Resale Certificates and When Should I Use One?

Home » Blog » TEXAS SALES TAX 101: What Are Resale Certificates and When Should I Use One?

Texas-state-sealGiving your vendor a resale certificate allows you to purchase things tax free when you intend to resell or lease the items purchased. This goes along with the concept that only the end user should pay sales tax.

You should not give a resale certificate for any items you will use in your business.  For example, an office supply store should not issue a resale certificate for items they use rather than sell.  Often it is easier to use the resale certificate on all items purchased and pay the sales tax on items that were used in your business in the use tax section of your sales tax return.

You do not have to give your vendor a resale certificate for each purchase.  You can give them a “blanket” resale certificate that states that all purchases will be resold in the normal course of business.

Like any good CPA, I need to add a disclaimer.  Unfortunately, it is impossible to offer comprehensive tax info over the Internet, no matter how well-researched or written.  And remember, I love my readers, but having me bookmarked on your computer doesn’t make you a client.   Before relying on any information given on this site, contact a tax professional to discuss your particular situation.