What Does a Wholesale Certificate Entitle My Business To?
When you purchase products to resell, you will not have to pay Virginia sales tax to your suppliers and vendors. The sales tax is still paid, but not until you sell the items and collect the sales tax from your customers. Once collected, you send the money to the Virginia Department of Taxation.
Who Needs a Virginia Wholesale License?
Any business that does not wish to pay sales tax on the goods it resells needs a resale certificate. The primary purpose of the license is to provide proof the business is exempt from paying sales tax.
It is essential to remember that this tax exemption is only valid on items that are to be resold. Therefore, you cannot be exempt from taxes on items purchased for the business’s day-to-day operations, such as computers, office supplies, office furniture, etc.