How to use a North Dakota resale certificate
by March 21, 2024
Please note: This blog was originally published in 2021. It’s since been updated for accuracy and comprehensiveness.
If you are buying products to resell in the state of North Dakota, you can qualify for a sales tax exemption on that purchase by presenting your North Dakota resale/exemption certificate.
It’s important to note that you should only use a North Dakota resale certificate if you truly intend to resell, lease or rent the items or use them as parts or ingredients in products for resale. It is illegal to use a resale certificate for purchases you intend to use yourself.
Here’s what you need to know as a seller about using a North Dakota resale certificate, or if one of your customers presents a North Dakota resale certificate to you.
If you wish to use a North Dakota resale certificate
North Dakota provides resellers with certificates of resale. If you wish to buy items for resale, fill out the entire certificate and present it to your vendor. You can find a blank form here.
If you are not registered to collect sales and use tax in North Dakota, you can use a Uniform Sales and Use Tax Certificate (Multijurisdictional) from the Multistate Tax Commission to buy items for resale from North Dakota vendors. Also keep in mind that vendors reserve the right to refuse to accept a resale certificate.
Also keep in mind that if you have a North Dakota sales tax permit, you are required to collect sales tax from your North Dakota buyers.
If you are presented with a North Dakota resale certificate
You are responsible for verifying North Dakota resale certificates when you are presented with them from a buyer. If you are audited and the resale certificates are found to be incomplete or invalid, you will beon the hook for fines and penalties.
- Make sure the resale certificate is properly completed – Ensure the North Dakota resale certificate is fully filled out and signed. It must include your buyer’s sales tax permit number.
- Check it with the state – Use this link to verify the validity of a North Dakota resale certificate. Select “Sales & Use Permit Inquiry” and follow the instructions. You can see where to verify retail certificates from every state here.
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