Resale Certificate Application Letter: Requesting Tax Exemption For Resale

For businesses that frequently purchase goods for resale, obtaining a resale Certificate is crucial for avoiding unnecessary sales tax burdens. This certificate acts as formal documentation that a business intends to resell the purchased items, exempting them from sales tax. However, when a new vendor requires a copy of your resale certificate before finalizing a transaction, a formal request letter becomes necessary.

Crafting a Professional Resale Certificate Request Letter

Sample Letter Requesting Sales Tax Exemption Certificate
Sample Letter Requesting Sales Tax Exemption Certificate

A well-structured resale certificate request letter demonstrates professionalism and ensures the vendor receives all the necessary information for verification. Here’s a template to guide you:

Your Business Name
Your Business Address
Phone Number
Email Address

Date

Vendor Name
Vendor Address

Dear [Vendor Name],

This letter is to formally request a copy of your resale certificate form. [Justification] Our business, [Your Business Name], holds a valid resale certificate issued by the [State] Department of Revenue with certificate number [Resale Certificate Number]. We are writing to establish a business relationship with your company and intend to purchase goods for resale.

[Justification] To comply with state sales tax regulations and avoid being charged sales tax on purchases intended for resale, we require a copy of your valid resale certificate on file. Having your resale certificate on file allows us to claim the appropriate sales tax exemption when making purchases from your company.

[Optional: Include Additional Information]

For your reference, we have included a copy of our valid resale certificate with this letter.

Thank you for your time and assistance. We look forward to a mutually beneficial business relationship.

Sincerely,

[Your Name]
[Your Title]

[Your Business Contact Information]

Justification for Each Paragraph:

The first paragraph establishes the context and importance of resale certificates.

  • The second paragraph introduces your business and its valid resale certificate.
  • The third paragraph explains the purpose of requesting the vendor’s resale certificate.
  • The optional paragraph offers to provide a copy of your own resale certificate for reference.
  • The concluding paragraph expresses gratitude and anticipation of a positive business relationship.

  • Key Points to Remember

    Personalize the Letter: Replace bracketed information with your specific details.

  • State Regulations: Ensure the letter aligns with your state’s sales tax regulations.
  • Maintain Professional Tone: Use formal language and proofread carefully for any errors.

  • Conclusion

    By utilizing this template and tailoring it to your specific needs, you can create a clear and concise resale certificate request letter that effectively communicates your business’s tax-exempt status. This approach streamlines the purchasing process and fosters a professional relationship with your vendors.

    Frequently Asked Questions (FAQs)

    1. Do I need a separate resale certificate request letter for each vendor?

    Yes, it’s advisable to send a separate resale certificate request letter to each new vendor you plan to purchase from. This ensures each vendor has your specific information on file and avoids any potential delays in processing your tax-exempt purchases.

    2. What if I don’t have a copy of the vendor’s resale certificate form?

    In most cases, you can download a generic resale certificate form from your state’s Department of Revenue website. This form can then be used to request the vendor to complete and provide it to you.

    3. How long is a resale certificate typically valid for?

    The validity period for a resale certificate varies by state. Some states issue permanent resale certificates, while others require renewal periodically. Check with your state’s Department of Revenue to confirm your specific certificate’s validity period.

    4. What happens if I don’t provide a resale certificate when required?

    If you fail to provide a valid resale certificate when purchasing goods for resale, you may be charged sales tax by the vendor. You might then need to file a claim with your state’s Department of Revenue to recover the erroneously charged sales tax.

    5. Is there any legal risk associated with using a resale certificate?

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