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I have a Certificate of Authority and a EIN but wholesale companys ask for Resale Certificate why do i need it

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I have a Certificate of Authority and a EIN but wholesale companys ask for Resale Certificate why do i need it

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  1. Because if you resale the product they need to be able to prove that they sold it to you at wholesale, not retail. They just need something on file to back up their taxes, in the event you re-distribute this product @ wholesale value you need to do the same thing with whatever company you distribute to, if you retail it, well then you have another system to go by. If you have a retailers/wholesalers certificate that should suffice.


  2. A Resale Certificate is proof that you have registered with the state sales tax collection agency and are legitimately involved in the retail business.  A Certificate of Authority apparently gives you permission to transact business in certain states; it does not register you with the sales tax agency.

    You need to file an application with the state agency charged with collecting sales taxes in your state (California - Board of Equalization).  You will be assigned a "resale" number, which will allow the wholesalers to sell to you for resale at retail.

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