In order to be exempt from sales tax, a business must have a valid resale certificate on file with the supplier. This document allows the business to purchase goods and services without being charged sales tax.
There are two ways for a reseller to share their certificate: by submitting an existing certificate to the supplier or, by creating a new certificate on third-party platforms such as Avalara, Tax-exempt, etc.
The responsibility of verifying the validity of the certificate falls on the supplier. They are responsible for ensuring all necessary steps have been taken in order to validate it.
Oregon is one state that requires businesses to meet certain criteria in order to be exempt from sales tax. In Oregon, nexus is established when a company has $100,000 in sales within the state.
Oregon – Does not have a state sales tax and does not levy local sales taxes
Sales tax rate – 0.000%
A Oregon resale tax exemption certificate allows businesses to buy or rent property or products without having to pay tax. The certificate is valid for one year and must be renewed annually by businesses to maintain the exemption.
Certain purchases and rentals can be made without the need to pay sales tax. Some examples are nails, fabric, and wood incorporated into a chair; items which will be rented out as real property or tangible personal property; and services that will be resold.
You may have to report any use taxes if you resell an item you purchased. Similar to sales taxes, use taxes apply when merchandise is brought into your state and used there.
When it comes to getting a Oregon resale sales tax exemption certificate, there are a few things that vendors need to know. First, vendors don’t need to request one from purchasers. The invoice should clearly identify exempt items. The annual resale certification is only valid for items that are exempt from tax based on their use. This means that you can use the certificate to purchase items for personal use and later sell them as part of your business.
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.
The initial certificate will suffice as long as all information is correct. There’s no need for you to send multiple copies. These are the things to remember if you want to obtain a certificate exempting resale tax.
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. 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.
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 business or, by creating a reseller certificate on third-party platforms such as Avalara, Tax-exempt, etc.
The supplier is the owner of the certificate. All steps must be taken to ensure the certificate remains valid.
Oregon is a state in the Pacific Northwest region of the Western United States. The Columbia River delineates much of Oregon’s northern boundary with Washington, while the Snake River delineates much of its eastern boundary with Idaho. The 42° north parallel delineates the southern boundary with California and Nevada.
Oregon has been home to many indigenous nations for thousands of years. The first European traders, explorers, and settlers began exploring what is now Oregon’s Pacific coast in the early-mid 16th century. As early as 1564, the Spanish began sending vessels northeast from the Philippines, riding the Kuroshio Current in a sweeping circular route across the northern part of the Pacific. In 1592, Juan de Fuca undertook detailed mapping and studies of ocean currents in the Pacific Northwest, including the Oregon coast as well as the strait now bearing his name. Spanish ships – 250 in as many years – would typically not land before reaching Cape Mendocino in California, but some landed or wrecked in what is now Oregon. Nehalem tales recount strangers and the discovery of items like chunks of beeswax and a lidded silver vase, likely connected to the 1707 wreck of the San Francisco Xavier.
In 1843, an autonomous government was formed in the Oregon Country, and the Oregon Territory was created in 1848. Oregon became the 33rd state of the U.S. on February 14, 1859. Today, with 4 million people over 98,000 square miles (250,000 km), Oregon is the ninth largest and 27th most populous U.S. state. The capital, Salem, is the second-most populous city in Oregon, with 169,798 residents. Portland, with 647,805, ranks as the 26th among U.S. cities. The Portland metropolitan area, which also includes the city of Vancouver, Washington, to the north, ranks the 25th largest metro area in the nation, with a population of 2,453,168.Source