GET ARIZONA RESALE CERTIFICATE | FORM 5000A
HOW TO GET A RESALE CERTIFICATE IN ARIZONA?
An Arizona resale certificate (Form 5000A) allows businesses to purchase goods tax-free when they are intended for resale. Instead of paying transaction privilege tax (TPT) upfront, businesses pass the tax responsibility to the final consumer at the point of sale.
To obtain an Arizona resale certificate, you have to follow these three steps.
✔ STEP 1 – Obtain a TPT License: Obtain a TPT License: Apply for an Arizona Transaction Privilege Tax (TPT) License which provides a TPT License Number (Sales Tax ID Number) required for tax-exempt purchases.
✔ STEP 2 – Fill Out AZ Form 5000A: Complete the Arizona Resale Certificate (Form 5000A), ensuring you include your TPT License Number and a detailed description of the items being purchased for resale. Download AZ Form 5000A.
✔ STEP 3 – Present the Certificate to Suppliers: Provide a copy of Form 5000A to vendors when purchasing goods for resale, allowing tax-exempt transactions under Arizona tax law.
WHAT IS AN ARIZONA RESALE CERTIFICATE?
An Arizona resale certificate is an official tax-exemption document recognized by the Arizona Department of Revenue (ADOR) that permits a business to purchase goods from a supplier that are intended to be resold without paying Transaction Privilege Tax (TPT) at the point of purchase.
The Arizona resale certificate is also commonly known as form 5000A, resale license, reseller permit, reseller license and tax exemption certificate. The Form 5000A allows suppliers to know that you are legally allowed to purchase the goods without them having to charge you sales tax, since you will be reselling the goods and collecting sales tax from the consumer (end user). There is no limitation on where a reseller permit can be used as long as the seller accepts it. Also, any items can be purchased using the permit assuming that the items will be resold.
WHAT INFORMATION IS ON AN ARIZONA RESALE CERTIFICATE?
The information included on the Arizona resale certificate include the name (company or individual) and address of the buyer, a descriptive detail of the goods being purchased, a reference that this merchandise is intended to be resold and the accurate Arizona sales tax number. It is important that you follow the correct procedure and protocol involved in the resale certificate process. Any errors occurring during this process could cause delays or penalties to be incurred by either party.
IS AN ARIZONA RESALE CERTIFICATE THE SAME AS AN ARIZONA SALES TAX PERMIT?
No, an Arizona Resale Certificate is not the same as an Arizona Sales Tax Permit. The Arizona Resale Certificate allows a buyer (such as a retailer) to purchase goods from a supplier (such as a wholesaler) without having to pay Transaction Privilege Tax (TPT) on items intended for resale. The Arizona Sales Tax Permit, officially called a Transaction Privilege Tax (TPT) License, allows a company to make sales inside the state and collect/remit Transaction Privilege Tax (TPT) on taxable sales.
It is the responsibility of the supplier to keep a copy of the resale certificate for compliance purposes and the responsibility of the retailer to collect sales tax when the goods are sold.
In order to have an Arizona resale certificate, you must first apply for an Arizona sales tax permit. This sales permit will provide you with an Arizona Tax ID number (sales tax number) which will be a necessary field on the Arizona resale certificate.
DO I NEED A RESALE CERTIFICATE IN ARIZONA?
Yes, you need an Arizona Resale Certificate if your business is a retail or wholesale operation that does not want to be responsible for collecting Transaction Privilege Tax (TPT) on resold items and wants to avoid future tax liability.Since sales tax is only supposed to be paid one time on a taxable good or service, then you want to make sure you are compliant at your phase of the product’s sales life. Even though sales tax is usually paid by the end user, the only way to ensure this is with an Arizona resale certificate that is properly filled out.
HOW TO VERIFY ARIZONA RESALE CERTIFICATE?
You can verify an Arizona resale certificate by using the TPT license number on the Arizona Department of Revenue’s License Verification tool, available at aztaxes.gov. This system allows you to confirm whether a business has an active Transaction Privilege Tax (TPT) license, which is required for valid resale certificate use.
DO I NEED A LICENSE TO RESELL ITEMS IN ARIZONA?
Yes. If you plan to resell taxable items in Arizona, you must obtain a Transaction Privilege Tax (TPT) license. This license serves as Arizona’s version of a sales tax permit and is required whether you’re selling in-store or online within the state. If you want to avoid application delays or errors, we can assist in obtaining the TPT license correctly and quickly.
HOW TO USE OR ACCEPT AN ARIZONA RESALE CERTIFICATE
To use or accept an Arizona Resale Certificate, reciprocity laws do not govern its interchangeability with resale certificates from other states. You must obtain an Arizona Transaction Privilege Tax (TPT) License which provides a unique TPT License Number. This number is required to complete the Arizona Resale Certificate (Form 5000A). The resale certificate must be properly completed with all necessary information, including the business name, address, and TPT License Number, to be valid.
Arizona accepts out-of-state resale certificates. If a buyer is from another state, they may use their home-state resale certificate for tax-exempt purchases in Arizona. Suppliers must ensure that the resale certificate is properly completed, valid, and not expired before accepting it.
To verify a resale certificate, suppliers must check the buyer’s TPT License Number through the Arizona Department of Revenue’s tax verification system. The resale certificate must be signed by the buyer, and purchases must align with the intended resale purpose. If any information is incomplete or appears fraudulent, additional verification is required. Sellers must maintain a copy of each resale certificate for audit purposes. One certificate per customer is sufficient, but subsequent purchases should be reviewed for compliance.
Engaging in collusion to evade sales tax collection is illegal. Sellers who accept fraudulent or improperly completed resale certificates may be held liable for unpaid sales taxes. Businesses must adhere to Arizona’s resale certificate requirements to comply with state regulations and avoid legal or financial penalties.