Resale Certificate New Jersey: Your Ticket to Savings

A resale certificate allows eligible businesses in New Jersey to purchase goods for resale without paying sales tax. By using a resale certificate, you can save money on your business purchases and pass those savings on to your customers.

Benefits of Using a Resale Certificate

There are many benefits to using a resale certificate, including:

• Saving money on taxes: Businesses that use a resale certificate can save up to 7% in sales tax on their purchases.
• Streamlining your sales tax accounting: Using a resale certificate can make your sales tax accounting easier by eliminating the need to track and pay sales tax on purchases that you will resell.
• Avoiding penalties: Businesses that fail to use a resale certificate when they are required to do so may be subject to penalties.

Who Can Use a Resale Certificate?

In New Jersey, the following businesses are eligible to use a resale certificate:

• Businesses that sell tangible personal property
• Businesses that provide services that are subject to sales tax
• Businesses that lease tangible personal property
• Businesses that are registered with the New Jersey Division of Taxation

How to Obtain a Resale Certificate

To obtain a resale certificate in New Jersey, you must file an application with the New Jersey Division of Taxation. The application can be filed online or by mail. You will need to provide the following information on your application:

• Your business name
• Your business address
• Your Federal Employer Identification Number (FEIN)
• A list of the types of goods or services that you will be selling
• The name and address of your supplier(s)

Your application will be processed within 30 days. If your application is approved, you will be issued a resale certificate.

How to Use a Resale Certificate

To use a resale certificate, you must provide it to your supplier when you make a purchase. The supplier will then exempt the sale from sales tax. You must keep a copy of your resale certificate on file for your records.

Penalties for Misuse of a Resale Certificate

Misuse of a resale certificate is a serious offense. Businesses that misuse a resale certificate may be subject to the following penalties:

• Fines
• Imprisonment
• Revocation of your resale certificate

Common Mistakes to Avoid

There are a few common mistakes that businesses make when using a resale certificate. These mistakes can lead to penalties, so it is important to avoid them. The most common mistakes include:

• Failing to obtain a resale certificate before making a purchase
• Using a resale certificate for personal purchases
• Using a resale certificate for purchases that are not for resale
• Failing to keep a copy of your resale certificate on file

By following these tips, you can avoid the common mistakes that businesses make when using a resale certificate.

How to Get the Most Out of Your Resale Certificate

There are a few things that you can do to get the most out of your resale certificate. These tips include:

• Use your resale certificate for all eligible purchases
• Keep a copy of your resale certificate on file for your records
• Be aware of the penalties for misuse of a resale certificate
• Contact the New Jersey Division of Taxation if you have any questions

By following these tips, you can maximize the benefits of your resale certificate.