Get a Maine Resale Certificate
HOW TO GET A MAINE RESALE CERTIFICATE?
A Maine Resale Certificate is a document that enables businesses to buy goods tax-free if they intend to resell them. It allows retailers to avoid paying sales tax upfront, ensuring that tax is only collected when the final customer purchases the product.
To obtain a Maine resale certificate, businesses must follow these three steps.
✔ STEP 1 : Obtain a Maine Retailer Certificate
✔ STEP 2 : Fill out the Maine 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 MAINE RESALE CERTIFICATE?
A Maine resale certificate (also commonly known as a resale license, reseller permit, reseller license and tax exemption 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 INCLUDED ON A MAINE RESALE CERTIFICATE?
The information included on the Maine 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 Maine 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 MAINE RESALE CERTIFICATE THE SAME AS A MAINE SALES TAX PERMIT?
A Maine Resale Certificate is not the same as a Maine Sales Tax Permit. The Maine Resale Certificate allows a buyer, such as a retailer, to purchase goods from a supplier, such as a wholesaler, without paying sales tax on goods that would otherwise be taxable. The Maine Sales Tax Permit, on the other hand, allows a company to make sales within the state and collect and remit sales tax for those 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 a Maine resale certificate, you must first apply for a Maine retailer certificate. This certificate will provide you with a Maine Tax ID number (sales tax number) which will be a necessary field on the Maine resale certificate.
DO I NEED A RESALE CERTIFICATE IN MAINE?
Yes, you need a resale certificate in Maine if your business is a retail or wholesale operation that does not want to be responsible for collecting sales tax on resold items and wants to avoid any future tax liability exposure.
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’sproducts sales life. Even though sales tax is usually paid by the end user, the only way to ensure this is with a Maine resale certificate that is properly filled out.
WHEN DO YOU NEED A RESALE CERTIFICATE IN MAINE?
You need a resale certificate in Maine when purchasing goods or taxable services intended for resale. This certificate allows you to buy such items without paying sales tax at the point of purchase. To qualify, your business must be registered with Maine Revenue Services (MRS) and have reported at least $3,000 in gross sales during the previous 12 months. If your business does not meet this threshold, you must pay sales tax on purchases and can claim a credit for the tax paid on goods resold.
WHERE CAN YOU GET A MAINE RESALE CERTIFICATE?
To obtain a Maine resale certificate, you must first register for a sales tax account by completing Form ST-1, either online or by mail. Once registered and if your business meets the $3,000 gross sales threshold, MRS will automatically issue a resale certificate. This certificate can then be presented to suppliers to make tax-exempt purchases for resale.
ARE THERE ANY REQUIREMENTS TO GET A RESALE CERTIFICATE IN MAINE?
Yes. To obtain a resale certificate in Maine, your business must:
Be registered with MRS for sales tax purposes.
Report at least $3,000 in gross sales during the previous 12 months.
If your business does not meet the $3,000 threshold, you will not be issued a resale certificate and must pay sales tax on purchases, though you can claim a credit for tax paid on goods resold.
IS MAINE RESALE CERTIFICATE THE SAME AS MAINE BUSINESS LICENCE?
No. A Maine resale certificate is not the same as a Maine business license.
A resale certificate allows a business to purchase goods or services tax-free for resale purposes.
A business license is a permit issued by local or state authorities that allows a business to operate legally within a specific jurisdiction.
Depending on your business type and location, you may need to obtain additional licenses or permits beyond the resale certificate.
HOW TO USE OR ACCEPT A MAINE RESALE CERTIFICATE
To use a Maine Resale Certificate, a retailer must provide it to suppliers when making tax-exempt purchases for resale. It must include the business name, address, sales tax registration number, and a description of the goods being purchased. Retailers must confirm each purchase qualifies for resale and provide an updated certificate upon renewal. Vendors may keep a certificate on file for ongoing transactions.
To accept a Maine Resale Certificate, vendors must verify it is properly completed, signed, and valid. Vendors must keep copies for audits and can check validity online. Maine follows a good faith standard, meaning vendors should accept certificates unless they suspect misuse. Out-of-state retailers may use the Multistate Tax Commission (MTC) Uniform Sales & Use Tax Certificate, but Maine does not accept resale certificates from other states unless the retailer has a Maine sales tax account.
Retailers without a resale certificate must pay sales tax on inventory purchases but can claim a credit for sales tax paid on goods resold when filing their Maine sales tax return. Businesses with an active resale certificate cannot claim this credit and must request a refund from Maine Revenue Services if they paid sales tax in error.
Misuse of a resale certificate is a criminal offense. If a business closes, the certificate must be returned to Maine Revenue Services. Vendors accepting invalid or fraudulent certificates may be held liable for unpaid sales tax.