Who Needs a Kansas Resale Certificate?
Any business that maintains an inventory of products they sell to their customers should have a Kansas reseller’s certificate. For example, you purchase sporting goods to resell in your sporting goods store. When you purchase the goods from your vendors, you do not have to pay sales taxes on the items purchased.
When one of your customers purchases sporting goods from your store, you collect the sales taxes from them. Then you submit all the sales taxes you have collected to the Kansas Department of Revenue at set intervals, such as monthly or quarterly. The sales taxes you collect are calculated on the price you charge for the items, not the price you paid to your vendors.
What Happens if You Do Not Have a Kansas Resale Certificate?
Suppose you do not have a Kansas reseller’s certificate? Then you would have to pay sales taxes on inventory items you purchased from your vendors. However, because you would also collect sales taxes from your customers, you would essentially be paying taxes twice on resale products.
As such, you could deduct the sales taxes you paid to your vendors when you submit your sales tax payments to the Kansas Department of Revenue—although you would need to keep meticulous records and receipts to support the sales tax payment deductions.
