Apply for a Nebraska Resale Certificate | Nebraska form 13
HOW TO GET A NEBRASKA RESALE CERTIFICATE?
A Nebraska Resale Certificate is a tax-exempt document that allows businesses engaged in resale to purchase goods without paying sales tax at the point of purchase. The certificate serves as proof that the buyer is acquiring the goods for resale purposes and will collect sales tax when selling them to the end consumer. It prevents tax pyramiding by ensuring sales tax is only applied once in the supply chain, at the final point of sale.
To apply for a Nebraska resale certificate, businesses must follow these three steps.
✔ STEP 1 : Obtain a Nebraska Sales Tax Permit
✔ STEP 2 : Fill out the Nebraska Form 13 certificate of resale
✔ STEP 3 : Present a copy of this certificate to suppliers when you wish to purchase items for resale
WHAT IS A NEBRASKA RESALE CERTIFICATE?
A Nebraska resale certificate (also commonly known as a resale license, reseller permit, reseller license and tax exemption certificate) is an official tax document that allows businesses to make tax-exempt purchases of tangible personal property intended for resale in the normal course of business. Issued under Nebraska sales tax regulations, this certificate shifts the sales tax collection responsibility from the wholesale transaction to the final retail sale.
The Nebraska resale certificate is also called a resale license, reseller permit, reseller license, or tax exemption certificate. To be properly completed, the certificate must include the purchaser’s Nebraska sales tax permit number, business details, a description of the goods or services purchased, and the date of issuance. It must be presented to the supplier at the time of sale and retained for compliance with the Nebraska Department of Revenue. Misuse of a Nebraska Resale Certificate can result in penalties, including fines and tax liabilities.
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 NEBRASKA RESALE CERTIFICATE?
The information included on the Nebraska 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 Nebraska 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 NEBRASKA RESALE CERTIFICATE THE SAME AS A NEBRASKA SALES TAX PERMIT?
No, a Nebraska resale certificate is not the same as a Nebraska sales tax permit. The Nebraska sales tax permit allows a company to make sales inside a state and collect/remit sales tax for those sales. Conversely, the Nebraska 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 Nebraska resale certificate, you must first apply for a Nebraska sales tax permit. This permit will provide you with a Nebraska Tax ID number (sales tax number) which will be a necessary field on the Nebraska resale certificate.
DO I NEED A RESALE CERTIFICATE IN NEBRASKA?
Yes, you need a resale certificate in Nebraska 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’s sales life. Even though sales tax is usually paid by the end user, the only way to ensure this is with a Nebraska resale certificate that is properly filled out.
WHERE TO GET A NEBRASKA RESALE CERTIFICATE?
To obtain a Nebraska resale certificate, you must first apply for a Nebraska Sales Tax Permit. Once registered, you can complete Form 13, the Nebraska Resale or Exempt Sale Certificate, which allows you to make tax-exempt purchases for resale purposes. This form can be downloaded directly from the Nebraska Department of Revenue’s website.
DOES NEBRASKA ACCEPT OUT OF STATE RESALE CERTIFICATES?
Yes, Nebraska accepts out-of-state resale certificates. Out-of-state purchasers may provide their home state sales tax number on Form 13. However, it is advisable to confirm acceptance with the specific seller, as they have the discretion to accept or reject out-of-state certificates.
HOW TO USE OR ACCEPT A NEBRASKA RESALE CERTIFICATE
To use or accept a Nebraska resale certificate, businesses must understand that it allows tax-free purchases of goods intended for resale, preventing double taxation by ensuring sales tax is collected only at the final consumer sale. It differs from a seller’s permit, which authorizes businesses to collect sales tax. Purchasers must provide a properly completed Form 13, Section A, including business details, a Nebraska sales tax permit number (or a foreign state sales tax number if applicable), an authorized signature, and the date. False statements can lead to penalties.
Sellers are not required to accept resale certificates but must verify that the form is complete and accepted in good faith. They remain liable for uncollected tax if the certificate is invalid or improperly used. Nebraska does not offer online verification; sellers must check the form manually or contact the Nebraska Department of Revenue. Proper record-keeping is essential, as resale certificates must be retained for audit purposes. Nebraska law imposes strict penalties for misuse.
Buyers who falsely claim tax exemption may face fines of at least $100 or ten times the tax amount, whichever is greater, and may also be charged with a Class IV misdemeanor. Sellers who knowingly accept fraudulent certificates or fail to collect tax when required may be liable for uncollected tax, penalties, and interest. Retailers or Certified Service Providers (CSPs) can obtain liability relief by securing a properly completed certificate within 90 days of the sale or 120 days following a request from the Nebraska Department of Revenue. The state recognizes Form 13, authorized substitutes, the Multistate Tax Commission Uniform Sales and Use Tax Certificate, and certificates compliant with the Streamlined Sales and Use Tax Agreement (SSUTA).
Using unapproved forms does not protect buyers or sellers. Compliance with Nebraska’s resale certificate regulations is crucial to avoiding tax liabilities, penalties, and audits.