When you operate a small business in West Virginia where you sell goods and products at retail to customers, it is highly recommended that your business apply for and obtain a West Virginia resale certificate. It does not matter where you operate your business—from a physical location, out of your home, or online—you will want to learn more about resale certificates and how they benefit your business.
What Is a West Virginia Resale Certificate?
A West Virginia resale certificate allows your business to have tax-exempt status for purchases you make for items you will add to your inventory and intend to resell to your customers. By presenting this certificate to your vendors and suppliers, they will not charge you sales taxes.
However, the tax-exempt status only applies to items you intend to resell. So, any purchases you make to support the day-to-day operations of your business, such as receipt paper, cleaning supplies, light bulbs, etc., would not be tax-exempt.
Additionally, you should be aware of the other names used for a West Virginia resale certificate, including:
- West Virginia Exemption Certificate
- West Virginia Reseller’s Permit
- West Virginia Resale Permit
- West Virginia Wholesale License
- West Virginia Wholesale Permit
- West Virginia Resale Exemption Certificate
Who Needs a West Virginia Resale Certificate?
Any West Virginia business that resells goods and products to customers at retail needs a West Virginia exemption certificate. Without one, you would be charged sales taxes on items you purchased from your vendors and suppliers that you intend to sell to your customers.
You would also be legally required by the state to collect sales taxes from your customers on those same items. So, essentially, you would be paying sales taxes twice on the same items. Fortunately, the state allows you to deduct the sales taxes you paid, provided you can provide proof in receipts and invoices from your vendors and suppliers.
If you do not keep accurate records or lose receipts and invoices, you will be stuck paying sales taxes twice. Therefore, as you can see, it is much better for you and your business to take the time to obtain a West Virginia resale exemption certificate.
Can My Business Accept West Virginia Resale Certificates?
Yes, any business can accept a West Virginia resale certificate and sell their goods to other businesses tax-free. However, you are responsible for conducting a West Virginia resale certificate verification.
This is easy to do by reviewing the certificate to ensure it is filled out completely. Next, look to see if the single purchase box is checked. If it is, you can only accept it once, and the customer would need to obtain a new one for future purchases.
You will also need to call the West Virginia Tax Department and verify the customer’s seller’s permit is active and valid. If not, you cannot give them tax-exempt status. Next, verify the items being purchased are related to the customer’s business. Last, make sure to keep a copy of the resale certificate for your records.
Do West Virginia Resale Certificates Expire?
Resale certificates in West Virginia do not expire, provided you are using your certificate to make at least one tax-exempt purchase annually. However, there is one exception you do need to be aware of that could require you to obtain a new West Virginia exemption certificate: If you check the box that states the wholesale certificate is for a single purchase, it is only valid for that purchase. Ideally, you want to avoid checking the box and use your resale license as a blanket certificate, so you can use it as many times as you want.
How to Get Your West Virginia Resale Certificate Through FastFilings
- Select your state.
- Fill out our secure online application form.
- Upload any necessary documents.
- Submit payment.
- We review your application for accuracy and use it to fill out the correct application form for West Virginia.
- We submit your application electronically to the state.
- Once the state accepts your application, you will receive your West Virginia resale certificate via email in one to two business days.
FastFiling can also help you obtain your West Virginia seller’s permit, also called your sales tax ID or sales tax use certificate your business also requires to operate legally. In addition, we can also help you secure resale certificates and seller’s permits in other states for you to be able to conduct business in that state and obtain tax-exempt status from vendors and suppliers in that state.
What are you waiting for? Apply online now to get your West Virginia resale exemption certificate. If you have further questions or require additional assistance, please feel free to contact us by filling out our online contact form.