TAX EXEMPTION FOR WHOLESALERS & RESELLERS
At Leonlite Landscape Lighting, we're committed to offering our business-side customers a streamlined and beneficial shopping experience. This article provides essential guidance on how you can leverage tax exemption benefits in your supply chain process.
TAX EXEMPTIONS IN SUPPLY CHAIN
In the United States, businesses that possess a state Sales Permit and complete a Resale Certificate for purchases intended for resale can typically be exempted from sales tax. This exemption is because sales tax is generally levied at the final point of consumer purchase rather than at intermediate stages of the supply chain. At Leonlite Landscape Lighting, we aim to ensure our ToB customers have the best and most convenient purchasing experience. By understanding and utilizing the tax exemption process, resellers and wholesalers can benefit from the 'tax-free' advantage, enhancing your procurement efficiency.
KEEP UPDATED WITH STATE LAWS AND YOUR PURCHASING STATUS*
Each state has its unique tax laws, and we recommend consulting with a local tax expert or referring to your state's specific tax regulations to ensure full compliance. Regular updates to your Sales Permit and Resale Certificate may be required in some states to maintain your tax-exempt status. Maintaining accurate records and relevant documentation is crucial for compliance with tax laws. This includes keeping copies of your Sales Permit, Resale Certificate, and transaction records.
HOW TO APPLY
Submit your Qualification Verification Form with valid files of Sales Permit, Resale Certificate, and your contact information. We will get back to you as soon as possible during our business hours (Mon-Fri 8AM to 4:30PM). A Resale Certificate indicates that the purchase is made with the intention of resale and the tax will be applied at the final sale to the consumer. This document should contain essential details like your business name, address, and a statement indicating the purchase is for resale.
AS A REMINDER*
This process is self-managed, and our role is to facilitate the 'tax-free' sales aspect based on your documentation. For more detailed information on California’s tax exemptions and resale certificates, you can refer to the California Department of Tax and Fee Administration here and the California Tax Service Center here.