Get a New Jersey Resale Certificate Online | ST-3 Form NJ
HOW TO GET A RESALE CERTIFICATE IN NEW JERSEY?
New Jersey Resale Certificate (Form ST-3) is a document issued by the New Jersey Division of Taxation that is exempt from New Jersey’s Sales and Use Tax for inventory, raw materials and services for resale. A Resale Certificate is commonly known as a resale license, reseller permit, reseller license and tax exemption certificate.
To get a Resale Certificate in New Jersey, complete the following 3 steps.
✔ STEP 1 – Apply for a NJ Certificate of Authority: To obtain a reseller permit in New Jersey, first, apply for a Certificate of Authority. This will provide you with a unique Sales Tax Number (Sales Tax ID Number).
✔ STEP 2 – Fill out the ST-3 Resale Certificate Form: ST-3 form is the official Resale Certificate form. Fill out the ST-3 form with your business details, including your New Jersey Taxpayer Identification Number, business name, address, and the nature of the items you intend to purchase for resale. Download the ST-3 Resale Certificate Form.
✔ STEP 3 – Use the NJ Resale License: Use the New Jersey Resale License by presenting the Resale License to your suppliers (or wholesalers) at the time of purchase to exempt these transactions from the State’s Sales and Use Tax. Keep a copy of the Reseller License for your records, as it may be required for financial and tax audit purposes.
WHAT IS A NEW JERSEY RESALE CERTIFICATE?
A New Jersey 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 NEW JERSEY RESALE CERTIFICATE?
Common details listed on the New Jersey 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 New Jersey 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 NEW JERSEY RESALE CERTIFICATE AND SALES TAX PERMIT THE SAME?
No, a New Jersey Resale Certificate is not the same as a NJ sales tax permit. The NJ Sales Tax Permit allows a company to make sales inside a state and collect/remit sales tax for those sales. A 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 New Jersey resale certificate, you must first apply for a New Jersey certificate of authority. This certificate will provide you with a New Jersey Tax ID number (sales tax number) which will be a necessary field on the New Jersey resale certificate.
DO I NEED A RESALE CERTIFICATE IN NEW JERSEY?
Yes, you need a resale certificate in New Jersey 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 New Jersey 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 New Jersey resale certificate that is properly filled out.
DO I NEED A RESELLERS LICENSE TO SELL ONLINE IN NEW JERSEY?
Yes, you need a reseller license to sell online in New Jersey. If you sell taxable goods or services online to customers in New Jersey, you are required to register for a Certificate of Authority for Sales Tax. This certificate authorizes your business to collect and remit sales tax and to issue resale certificates to suppliers.
DOES NEW JERSEY ACCEPT OUT OF STATE RESALE CERTIFICATES?
Yes. New Jersey accepts out-of-state resale certificates under specific conditions. Out-of-state sellers not required to register in New Jersey may use their home state’s resale certificate, the Multistate Tax Commission’s Uniform Sales & Use Tax Certificate, or New Jersey’s Form ST-3NR. These certificates must be fully completed and provided to the seller to claim exemption from sales tax .
CAN I GET A RESALE CERTIFICATE AS A SOLE PROPRIETOR IN NEW JERSEY?
Yes. Sole proprietors can obtain a resale certificate in New Jersey by registering their business through the NJ-REG form. While an Employer Identification Number (EIN) is not mandatory for sole proprietors, it is recommended to use one instead of a Social Security Number for privacy reasons .
HOW LONG DOES IT TAKE TO GET A RESALE CERTIFICATE IN NEW JERSEY?
The processing time for a resale certificate in New Jersey is typically one to two business days, provided that all required documentation is submitted and the application is complete.
HOW LONG IS A RESALE CERTIFICATE VALID IN NEW JERSEY?
A resale certificate in New Jersey remains valid as long as the purchaser continues to make recurring purchases from the seller. Sellers are required to retain the certificate for at least four years from the date of the last sale covered by the certificate.
HOW TO USE OR ACCEPT A NEW JERSEY RESALE CERTIFICATE
There are reciprocity laws in place governing the use of resale certificates interchangeably between states. So, if you are located in one state and need to purchase items (from a supplier or vendor) for resale from another state then you can do so. If you are a supplier and need to accept resale certificates from your buyers, it would behoove you to follow some best practice guidelines. Make sure that the certificate falls within a valid reciprocity agreement. If you are a supplier located in New Jersey and your buyer is located in New Jersey, then there is no problem. If, however your buyer is from a non-reciprocating state outside New Jersey, you would not be able to accept their out of state resale certificate. As previously stated, make sure the resale certificate is filled out properly with all the buyers’ correct information. The last and ostensibly most important thing is to make sure the resale certificate is valid and not expired. As the burden of proof may fall upon you, thoroughly checking and verifying that you are presented with a legitimate resale certificate is paramount. Almost all states in one form or another have a way for you to check the validity of a resale certificate presented to you.