What is a reseller’s permit?
If you have a business through which you are purchasing products for resale, you should have a reseller’s permit, also known as a resale number, reseller’s license, or sales tax identification number.
A resale number will also allow you to purchase items from wholesalers and distributors without paying sales tax.
What is a resale license number?
A resale number is the number attached to your reseller’s permit or license. When you get a reseller’s permit or licence from your state government, it will have your resale number. You can then give this number to suppliers to buy goods for resale without paying the sales tax for those items.
How do you get a reseller license?
The requirement to obtain a seller’s permit applies to:
- Register In Person. You may register for a seller’s permit in person at one of the Board of Equalization’s field offices.
- Register by Mail. You can get an application for a resellers permit mailed to you by calling 800-400-7115.
- Apply Online.
Why do I need a resellers license?
To avoid local sales tax – basically, the main purpose of the Reseller License is to avoid paying local sales tax when purchasing wholesale items for the purpose of reselling them. Because taxes are only need be paid one time, you resell the items and make the customers pay for it themselves at the time of purchase.