Virginia businesses that want a tax exemption from paying sales taxes on goods they intend to resell will need to obtain a wholesale license. A wholesale license might go by several other names, including:
- Resale Certificate
- Resale License
- Wholesale License
- Virginia Sales and Use Tax Certificate of Exemption
- Virginia Sales and Use Tax Permit of Exemption
- Virginia Sales and Use Tax License of Exemption
Regardless of what you call it, if you no longer wish to pay sales taxes on the goods you sell your customers, then you will need to apply for your wholesale license.
What does a wholesale certificate entitle my business to?
When you purchase products to resell, you will not have to pay Virginia sales tax to your suppliers and vendors. The sales tax is still paid, but not until you sell the items and collect the sales tax from your customers. Once collected, you send the money to the Virginia Department of Taxation.
Who needs a Virginia wholesale license?
Any business that does not wish to pay sales tax on the goods they resell needs a resale certificate. The primary purpose of the license is to provide proof the business is exempt from paying sales tax.
It is essential to remember this tax exemption is only valid on items that are to be resold. Therefore, you cannot be exempt from taxes on items purchased for the business’s day-to-day operations, such as computers, office supplies, office furniture, etc.
Is there a difference between a wholesale certificate and a seller’s permit?
In Virginia, there is a difference between a wholesale certificate and a seller’s permit. A seller’s permit is required for all businesses that sell goods and services to consumers. A seller’s permit is also known by the following names:
- Sales Tax ID
- Sales Tax Permit
- Sales Tax License
- Virginia Sales and Use Tax Certificate
- Virginia Sales and Use Tax Permit
- Virginia Sales and Use Tax License
Virginia is among a handful of states that require businesses to obtain a seller’s permit and a wholesale certificate and keep these two as separate documents.
How to Get Your Wholesale Certificate in Virginia Quickly
Step 1: Gather all relevant business information.
You will want to have several types of information handy for filling out your application, including:
- Business License
- Business Structure (i.e., sole proprietorship, partnership, limited liability company, etc.)
- Business Tax ID Number
- Federal Tax ID Number/Social Security Number
- Business Address and Phone Number
- Vender and Supplier Information
- Bank Account Information
- Email Address
Step 2: Complete your secure online application form.
At FastFilings, our online application form for your wholesale certificate is secure. You just need to enter the required information on the form. We will review your application and, if necessary, contact you if we need additional information or if you made mistakes.
Step 3: Wait for your Virginia wholesale certificate.
We will fill out the official State of Virginia application form for your resale certificate on your behalf. Since we file your application electronically with the state, you can have your wholesale certificate as fast as 24 to 48 hours.
Once we receive confirmation from the state of Virginia that your application was approved, we will send you your wholesale certificate electronically. After you receive your wholesale certificate, be sure to provide a copy of it to all of your vendors and suppliers to avoid having to pay sales tax on items you intend to resell.
Nothing could be easier or faster when obtaining a wholesale license in Virginia. So, what are you waiting for? Get started by filling out your online application at FastFilings today!
Please feel free to use our online contact form if you have further questions, require assistance, or would like help obtaining your Virginia sales tax certificate.