Reseller permits are free for businesses that make wholesale purchases, including qualified repair businesses. The permits allow businesses to purchase items or services for resale without paying sales tax. Qualifying businesses are automatically issued a reseller permit; if a business isn’t issued one, you must apply online for a reseller permit.
Reseller permits are generally valid for four years. However, permits are valid for only two years if the business:
If your business’s permit is not automatically renewed, you will receive a notice to apply for a new reseller permit about 90 days before your permit expires.
The reseller permit must be received at the time of sale. Permits received after the sale may not be accepted during an audit. The seller must receive a reseller permit or charge sales tax on the purchase.
A seller may accept a facsimile copy of a reseller permit.
The account ID/UBI number on an invoice is not sufficient. The seller must receive a DOR- issued reseller permit.
Sellers must maintain proper documentation to support wholesale sales for five years after the date of sale. Sellers must retain copies of reseller permits on file for five years after the date of sale.
Businesses may not use a reseller permit to buy:
The Department of Revenue routinely examines purchases made with reseller permits to verify permits are used appropriately. Anyone found using a permit inappropriately will owe the tax due and a 50 percent penalty, even if there was no fraud intended, and may have their permit revoked.
During an audit, failure to have a valid, current reseller permit or documentation on file may result in the reclassification of the sale from wholesaling to retailing B&O tax. The business will owe sales tax for that sale.