In order to file a Nebraska sale and use tax return, you will need to provide a Resale Certificate. The Annual Resale Certificate is available on the Nebraska Department of Revenue website and can be presented when buying items for resale. The address on the certificate does not need to match that of the buyer- the selling dealer can accept a certificate that has only the owner’s name on it. The wholesaler doesn’t need another copy of an Annual Resale Certificate if an on-account customer is required to pay by cash or credit card for a short period of time, then resumes being an on-account customer again later in the year. The dealer can sell to the customer tax-exempt for a charge account or cash on delivery. In order to sell this tax-exempt inventory, however, the dealership must have a resale certificate.
Sales tax rate – 5.50%
Information required to register for a sales tax permit in the state of Nebraska
1) Employer Identification Number (EIN) from the IRS, or owner’s Social Security Number if a sole proprietorship with no employees
2) Doing Business As and legal name of the business
3) The physical and mailing address of the business
4) Names, addresses, and social security numbers of owners/officers/members
5) Type of business entity: Sole Proprietorship, Partnership, Corporation, Limited Liability Company (LLC)
6) Accounting basis (cash or accrual)
7) Accounting period (calendar or fiscal)
8) Description of what products or services are being sold
9) Projected sales tax liability
10) Expected date of the first sale
Certain purchases and rentals can be made without the need to pay sales tax. You can use nails, fabric and wood to make a chair, or items that you will rent out as tangible personal property, real property, or services.
Nebraska Vendors need to be aware of a few things when applying for a resale tax exemption certificate. For starters, the vendor does not need to get one from their purchasers- the invoice should already identify the exempt items. Secondly, the annual resale certificate is meant to be used on items that are tax exempt based on their usage. That means that if you purchase something for personal use but then later sell it as part of your business, you can use this certificate for those transactions.
To make the form valid, the purchaser doesn’t need to highlight any of the bullet points. All that is required is to fill out the form and sign it. The address on the certificate doesn’t have to match the location address of your company. It just needs to include your business name and be up-to-date.
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. example – If you are a business called A, based in the state of Florida, then in order to re-sell goods within the state of Florida then you must obtain a reseller’s certificate. Although a reseller’s certificate is usually valid within the state, there are some friendly states that accept certificates from other states to allow them to do business in their state.
If a reseller certificate is submitted by the business, supplier, or the provider of the service or goods, is authorized not the charge any sales tax, and the liability of sales tax, then lies with the re-seller, based on the value of the final sales. Ex. $100 worth of products are sold by business A. The reseller certificate (2A) was submitted by reseller b (2A). No sales tax is charged on this transaction. However, if the reseller sells the product for $200 or more, the $200 sales tax will be added to the final sales.
The owners of validated the certificate lie with the supplier and all necessary steps must be undertaken to ensure that the certificate is valid
Nebraska is a state in the Midwestern region of the United States. It is bordered by South Dakota to the north; Iowa to the east and Missouri to the southeast, both across the Missouri River; Kansas to the south; Colorado to the southwest; and Wyoming to the west. It is the only triply landlocked U.S. state.Source