Get a Kansas Resale Certificate Online | Form ST-28A
HOW TO GET A RESALE CERTIFICATE IN KANSAS
A Kansas Resale Certificate (Form ST-28A) is an official document issued by the Kansas Department of Revenue (KDOR) that allows businesses registered to collect Kansas sales tax to purchase tangible personal property or taxable services intended for resale without paying sales tax at the time of purchase. The Resale Certificate acts as proof that the items acquired are for resale and that the purchaser needs to be exempted from paying sales tax upfront. A Resale Certificate is commonly known as a tax exemption certificate, reseller permit, resale license, and reseller license in Kansas.
To get a Resale Certificate in Kansas, complete the 3 steps given below.
✔ STEP 1 : Complete a Kansas Business Tax Application
✔ STEP 2 : Fill out the Kansas resale exemption certificate form
✔ STEP 3 : Present a copy of this certificate to suppliers when you wish to purchase items for resale
WHAT IS A KANSAS RESALE CERTIFICATE?
A Kansas resale certificate is a tax-exempt form that permits a business to purchase goods from a supplier that are intended to be resold without the reseller having to pay sales tax on them. It 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 A KANSAS RESALE CERTIFICATE?
Common details listed on the Kansas 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 Kansas 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 A RESALE CERTIFICATE THE SAME AS A SALES TAX PERMIT IN KANSAS?
No, a Resale Certificate is not the same as a Sales Tax Permit. The Sales Tax Permit allows a company to make sales inside a state and collect/remit sales tax for those sales. The Resale Certificate allows a buyer (such as a retailer) to purchase goods from a supplier (such as a wholesaler) without having to pay sales tax on the goods that would otherwise be taxable. 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 a Kansas resale certificate, you must first apply for a Kansas sales tax permit. This sales permit will provide you with a Kansas Tax ID number (sales tax number) which will be a necessary field on the Kansas resale certificate.
DO I NEED A RESALE CERTIFICATE IN KANSAS?
Yes, you need a Resale Certificate in Kansas if your business is a retail or wholesale operation that does not want to be responsible for collecting sales tax on resold items and does not want to have any exposure to any future tax liability, then a Kansas resale certificate will be required. 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 a Kansas resale certificate that is properly filled out.
DO I NEED A RESELLER'S LICENSE TO SELL ONLINE IN KANSAS?
Yes. If you sell taxable goods or services online to customers in Kansas, you are required to obtain a Kansas Sales Tax Registration Certificate. This certificate authorizes your business to collect and remit sales tax and to issue resale certificates to suppliers.
DOES KANSAS ACCEPT OUT OF STATE RESALE CERTIFICATES?
Yes, with conditions. Kansas accepts out-of-state resale certificates, such as the Multistate Tax Commission’s Uniform Sales & Use Tax Certificate (Form ST-28M) or the Streamlined Sales and Use Tax Agreement Certificate of Exemption (Form PR-78SSTA). However, if the out-of-state retailer has sales tax nexus with Kansas and the goods are drop-shipped to a Kansas location, the retailer must provide a Kansas sales tax registration number.
HOW LONG DOES IT TAKE TO GET A RESALE CERTIFICATE IN KANSAS?
After registering for a Kansas Sales Tax Registration Certificate, your resale certificate (Form ST-28A) can be completed and used immediately. The registration process can typically be completed online within a few business days.
HOW LONG IS A RESALE CERTIFICATE VALID IN KANSAS?
Kansas resale certificates do not have a specified expiration date. However, it is recommended to periodically review and update the certificate to ensure the information remains accurate and up to date.
HOW TO USE OR ACCEPT A KANSAS RESALE CERTIFICATE
Present the Resale Certificate to the seller when buying goods and services intended for resale. The Resale Certificate informs the seller that the items are exempt from sales tax due to their resale nature.
Keep detailed records of all tax-exempt purchases, including copies of the Resale Certificates provided to sellers. The documentation supports the legitimacy of your tax-exempt transactions and is essential for tax reporting and audits.