If you’re a business in Hawaii and you plan on buying products to resell, you’ll need a Resale Sales Tax Exemption Certificate. This certificate is also known as a tax-exempt certificate and it must be obtained by the business, that intends to buy products with an intention to re-sell. Normally reseller’s certificates are valid within the state however there is no clear-cut answer, as a few friendly states do accept certificates from other states, to do business in their own state.
If a reseller certificate is submitted by the business, supplier, or the provider of the service or goods, is authorized not to charge any sales tax, and the liability of sales tax then lies with the re-seller based on the value of final sales.
There are 2 ways of sharing a reseller’s certificate by the reseller: this can be achieved either through submitting an existing reseller certificate to the supplier or creating a reseller certificate on third-party platforms such as Avalara Tax-exempt etc.
The owners of validated certificates lie with the supplier and all necessary steps must be undertaken to ensure that the certificate is valid
Hawaii – https://hitax.hawaii.gov/_/
Sales tax rate – 4.000%
Information required to register for a sales tax permit in the state of Hawaii
1) Personal identification info (SSN, address, etc.)
2) Business identification info (EIN, address, etc.)
3) Corporate entity type (S-Corp, sole-prop, etc.)
4) Your accounting period (calendar or fiscal year)
5) Your accounting method (cash or accrual)
6) Other miscellaneous info depending on your business
If you resell an item that you’ve purchased, you may need to report use taxes on the item. Use taxes are similar to sales taxes but apply only when merchandise is brought into your state for use there–not when it’s sold.
The purchaser does not need to circle one of the bullet points on the form in order for it to be valid- simply filling out and signing the form is enough. Keep in mind though that the address on the certificate does not need to match up with your company’s location address; it just needs to have your proper business name listed and be current.
An Annual Resale Certificate can be accepted by a selling dealer if it has only one owner and no d/b/a. This type of certificate is valid for any type of transaction (store, e-commerce). The selling dealer can also continue to sell tax exempt products to this customer (for example, on charge account or cash-on delivery basis).
A reseller certificate can be submitted by a business. The supplier or provider of the service/goods is not authorized to charge sales tax. If the final sales exceed $100, the responsibility for sales tax falls on the re-seller. Example – $100 worth of items are sold by business A to business B, and because a reseller certificate was provided by reseller b (2A) no sales tax is charged in this transaction., however, when the reseller will sell the product for say $200 sales tax must be taxed on $200
The owners of validated the certificate lie with the supplier and all necessary steps must be undertaken to ensure that the certificate is valid
We are a furniture business that encourages small and large businesses alike to buy our products as a reseller for your own website or other multi-channel partners, such as Shopify and eBay.
Furthermore, none of our products are sold directly to the consumer; we do not offer retail services.
Hawaii ( hə-WY-ee; Hawaiian: Hawaiʻi [həˈvɐjʔi] or [həˈwɐjʔi]) is a state in the Western United States, located in the Pacific Ocean about 2,000 miles from the U.S. mainland. It is the only state outside North America, the only state that is an archipelago, and the only state in the tropics. Hawaii is also one of four U.S. states that were once independent nations along with Vermont, Texas and California.
Hawaii comprises nearly the entire Hawaiian archipelago, 137 volcanic islands spanning 1,500 miles (2,400 km) that are physiographically and ethnologically part of the Polynesian subregion of Oceania. The state’s ocean coastline is consequently the fourth longest in the U.S., at about 750 miles (1,210 km). The eight main islands, from northwest to southeast, are Niʻihau, Kauaʻi, Oʻahu, Molokaʻi, Lānaʻi, Kahoʻolawe, Maui, and Hawaiʻi, after which the state is named; it is often called the “Big Island” or “Hawaii Island” to avoid confusion with the state or archipelago. The uninhabited Northwestern Hawaiian Islands make up most of the Papahānaumokuākea Marine National Monument, the nation’s largest protected area and the third largest in the world.Source