If you buy products exclusively to resale in the state of Virginia, you can avoid paying sales tax on your purchases by presenting a Virginia resale certificate at checkout. Always keep in mind that you should only use your resale certificate to buy items you intend to resell or that you intend to use as a component part of an item for resale. Any other use of the resale certificate (such as buying office supplies or personal items) is usually considered unlawful.
Here are the rules and regulations for using (and accepting) a resale certificate in Virginia.
How to Use a Virginia Resale Certificate
Here’s what the Virginia Department of Taxation has to say about using a resale certificate as a retailer:
In other words, you can use a resale certificate to purchase items tax free as long as a) you intend to resell them b) you intend to use them as packaging for items that you intend to resell.
To use a Virginia resale certificate, you generally must also be registered to collect Virginia sales tax from buyers in the state.
To use a Virginia resale certificate, fill out Virginia form ST-10 accurately and completely, and present it to the retailer from which you are making your tax free purchase.
How to Accept a Virginia Resale Certificate
If you are a retailer and are presented with a Virginia resale certificate, you have a few responsibilities:
- Make sure the Virginia ST-10 form is filled out accurately and completely – Ensure the form is properly filled out and signed by an officer of the corporation.
- Verify that the purchasers Virginia resale permit is valid – Online verification is not available at this time, so call 804-367-8037 to verify that the resale certificate is valid
- Keep the ST-10 form on file – Keep a fully executed and signed copy of this form in case of audit.
I hope this answers your questions about using or accepting a Virginia resale certificate. Have questions or something to say? Start the conversation in the comments!