Alabama Resale Certificate

How to Get an Alabama Resale Certificate

The state of Alabama requires businesses to collect and remit sales taxes on goods whether they are purchased at wholesale or retail prices. However, the state allows businesses to avoid paying sales taxes on items they intend to resell. As such, you need to know how to get an Alabama resale certificate for your business.

 

What Is an Alabama Resale Certificate?

An Alabama resale certificate is a tax-exemption certificate that permits you not to pay sales taxes when purchasing goods you intend to resell at your business. A resale certificate may also be called a wholesale certificate, reseller’s permit, certificate of resale, or a sales tax exemption certificate.

This tax-exempt form only applies to goods that are resold. IItems used for your business’s operation, such as cleaning supplies, pens, paper, etc., do not qualify for a sales tax exemption.

 

Who Needs an Alabama Resale Certificate?

All businesses that intend to sell goods or services in the state of Alabama must register for an Alabama resale certificate. Unlike other states, where a resale certificate and seller’s permit are two different documents, they are one and the same in Alabama.

Furthermore, any out-of-state business that wishes to make tax-exempt purchases from suppliers and vendors in Alabama must apply for and obtain an Alabama seller’s permit. Alabama is one of ten states that will not honor or accept out-of-state resale certificates.

 

What Is an Alabama Seller’s Permit?

An Alabama seller’s permit is your sales and use tax certificate that allows you to conduct business in the state. Some other names used for a seller’s permit include:

  • Alabama Sales Tax Permit
  • Certificate of Authority
  • Resale Certificate
  • Resale Permit
  • Sales Tax Permit

 

What Happens if You Do Not Have an Alabama Resale Certificate?

If you do not have an Alabama resale certificate, you cannot legally conduct business in the state. The Alabama Department of Revenue requires all businesses to collect sales tax whether they do business online or at a physical store. Even businesses that operate out-of-state are required to register for an Alabama sales tax permit and collect sales taxes from their customers in Alabama.

 

How Do I Make Tax-Exempt Purchases in Alabama?

Obtain an Alabama Resale CertificateUnlike other states where you have to apply for and obtain a resale certificate to present to vendors and suppliers to receive tax-free goods, you just need to provide a copy of your current sales tax permit. However, while most vendors will waive Alabama taxes, the state does not require them to do so.

Should you be charged the current sales tax rate for goods you intend to resell at your business, you can claim a sales tax credit when you submit and pay the sales taxes you collected to the state.

 

Can I Use My Wholesale Permit Out-of-State?

Most states will accept your Alabama wholesale permit and waive the appropriate sales taxes when purchasing products from out-of-state vendors and suppliers you intend to resell. Yet, some states may require you to apply for a wholesale permit in their state to obtain tax-exempt status, such as Florida, California, and Louisiana.

 

How FastFilings Helps You Obtain an Alabama Resale Certificate

FastFilings can quickly help you obtain your Alabama resale certificate—i.e., seller’s permit—using our simplified process.

  1. Complete our secure online application form.
  2. Upload any required documentation.
  3. Submit your payment information.
  4. We review your application for accuracy and submit it electronically to the state.
  5. Sit back and relax since you will receive your seller’s permit electronically in one to two business days.

If there are any discrepancies on your application form, we will contact you directly. We can also assist you in obtaining wholesale certificates for other states where your Alabama resale certificate is not honored.

Apply online for your Alabama sales tax permit and wholesale certificate today! If you have further questions or require additional assistance, do not hesitate to contact us using our online contact form.

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