Starting a business in Nebraska requires you to register your business with the state and obtain different types of permits, certificates, and business licenses. When you intend to start a business where you will resell goods to your customers, it is essential to know how to apply for a Nebraska resale certificate.
What Is a Nebraska Resale Certificate?
A Nebraska resale certificate allows your business to purchase goods you intend to sell at retail from a vendor and avoid paying sales tax. A resale certificate can also be called a tax-exempt certificate, reseller permit, wholesale certificate, or a reseller license.
Instead of paying sales tax to your vendor when you purchase goods for resale, you collect sales taxes from your customers. Then, you submit the collected sales taxes to the Nebraska Department of Revenue.
Your tax exemption only applies to goods that you intend to resell. You still have to pay sales taxes on items used in the day-to-day operations of your business, such as receipt paper, pens, uniforms, etc.
Is a Nebraska Resale Certificate the Same as a Seller’s Permit?
In Nebraska, a resale certificate and a seller’s permit are two different documents. A seller’s permit is also called a sales tax ID number, sales tax certificate, sales and use tax certificate, or sales tax permit. All businesses in Nebraska, whether they sell goods or services, need a seller’s permit to operate legally in the state.
Who Needs a Nebraska Resale Certificate?
Any business that intends to purchase products and resell them needs a Nebraska resale certificate. Even wholesalers who resell to retailers can benefit from a wholesale certificate. Having one allows wholesalers to buy the goods they resell to retailers and also avoid paying sales taxes.
Do Nebraska Resale Certificates Expire?
A Nebraska resale certificate expiration can occur at different times. For example, if you do not use your resale certificate within a 12-month period, it automatically expires. You then need to reapply for one to reobtain your tax-exempt status on products you resell.
Furthermore, resale certificates can expire every five years for certain businesses in specific industries. If it does expire, there will be an expiration date listed on your certificate when it is issued.
Can I Use a Nebraska Resale Certificate to Buy Goods Out-of-State?
Most states will honor your Nebraska resale certificate and not require you to pay state sales taxes in a particular state. However, there are ten states that will not honor a Nebraska wholesale certificate. Therefore, if you intend to purchase products from suppliers in those states, you must obtain a resale certificate from that state to obtain tax-exempt status.
For example, you find a really good deal on products at wholesale prices in Illinois. However, Illinois is one of the states that does not honor out-of-state resale certificates. So, you would either have to pay Illinois sales taxes or apply for an Illinois resale certificate to avoid paying the sales taxes.
Can I Use an Out-of-State Resale Certificate in Nebraska?
Most suppliers and vendors in Nebraska will honor out-of-state resale certificates on goods purchased for resale purposes. To obtain a tax exemption, you will need to provide the supplier or vendor with a copy of your resale certificate.
Are Nebraska Sellers Required to Accept a Resale Certificate?
Nebraska sellers are not required to accept a resale certificate. However, most suppliers and vendors do. In the event one of your suppliers or vendors fails to honor your wholesale permit and you pay sales taxes, you will receive a credit from the Nebraska Department of Revenue when you file and pay sales taxes. Just make sure to keep accurate records and receipts showing the amount of sales taxes you paid on your resale goods.
How to Apply for a Nebraska Resale Certificate at FastFilings
It is easy to apply for a Nebraska resale certificate at FastFilings. We have simplified the application process to save you time and help you obtain your resale certificate quickly.
Step 1: Fill Out Our Secure Online Application
Our application form lists all the information you need to provide and what documentation you need to upload.
Step 2: We Review Your Application
We take the time to review your application for accuracy and contact you if we require additional information.
Step 3: We Electronically File Your Application
We use the information you provided to complete your Nebraska resale certificate application and file it electronically with the state.
Step 4: Receive Your Resale Certificate in 24 to 48 Business Hours
We will send you an electronic copy of your resale certificate as soon as the Nebraska Department of Revenue approves your application. Once you receive it, you can start using it immediately.
Ready to get your Nebraska resale certificate? Fill out our online application form today! We can also assist you with obtaining your Nebraska seller’s permit. Do not hesitate to contact us using our online contact form if you have any questions or require further assistance.