What Can You Do with a Resale Certificate?
You are allowed to make purchases from other businesses, vendors, and suppliers and not pay state sales taxes in Rhode Island. However, while most businesses will honor your Rhode Island resale certificate, they are not required to do so.
Some businesses may still decide to charge you sales taxes even on items you intend to resell. Should this occur, you need to keep accurate records and receipts showing you paid the sales taxes. Then, when you submit your payment to the state of sales taxes collected, you are allowed to deduct any amounts you paid to other businesses for your resale items.