What is a wholesale license in New York?
A wholesale license, which is also called a resale certificate, resale permit, wholesale permit, wholesale certificate, reseller’s permit, or tax exemption certificate, allows businesses in New York to buy goods they intend to resell to their customers without paying sales tax on those items.
For instance, you sell novelty t-shirts in your shop in New York City to tourists. With a wholesale license, you do not pay sales tax when purchasing the t-shirts from your vendors and suppliers. Instead, you collect sales tax from your customers and submit the taxes you collect to the state tax department.Â
If you did not have a wholesale license, you would have to pay your vendors and suppliers sales tax and collect sales tax from your customers.Â
Who needs a New York resale certificate?
Any type of business in the state of New York that wants to buy goods to resell to others should have a resale certificate. This includes sole proprietorships, partnerships, LLCs (limited liability companies), and corporations.Â