Why Resale Certificates Are Vital For Buyers On Bidsheet
Bidsheet is classified as a marketplace facilitator and are only accepting U.S. businesses with a resale certificate, businesses with a business license in states that don't require a resale certificate, or international business with their businesses registered with their local government.
To establish and maintain your account as a buyer, we require that you provide us with a blanket Resale Certificate valid in the state where you are located, as well as any other state in which you are registered and that you update your certificate(s) on a periodic basis in accordance with state laws and our policy. You’re responsible for providing an updated certificate when it is time to do so. Failure to provide an updated certificate may result in delayed shipments, rejection of your orders, and the closure of your account.
Important
Your delivery locations (ship-to addresses) can only be in the states your business is registered. You must provide a Resale Certificate for each state your business is registered. When your account is verified, your default shipping address is your business address. You can contact us to add more delivery locations.
The Resale Certificate must include:
- Legal business name
- Business trade name(s); DBA
- Business address and phone number
- Type of business as registered with your state
- General description of the business
- State sales registration number of each state in which you are licensed for resale
- Signature of owner or officer signing application
- Name and title of the person signing the certificate
- The date certificate is signed
PLEASE NOTE THE FOLLOWING:
Bidsheet has special sales tax requirements for shipment to the following states and cities. Sales tax may be applied to invoices to those jurisdictions unless the stated information is provided.
| Jurisdiction | Special requirement |
|---|---|
| California | A resale certificate with valid California tax ID number. |
| Connecticut | A resale certificate with valid Connecticut tax ID number. |
| District of Columbia | Annual OTR-368 resale certificate issued by OTR with valid District of Columbia tax ID number. |
| Hawaii | A resale certificate with a valid Hawaii tax ID number. Please note: Even with a Hawaii tax ID Hawaii sales are subject to and will be charged the .5% wholesale tax. |
| Illinois | IL resellers complete the multi-jurisdictional or IL CRT-61; non-IL resellers complete the multi-jurisdictional form by writing “No Nexus” on the IL state line. In addition, please provide the Illinois Resale Exemption Statement. |
| City of Chicago | City of Chicago 7550-Transaction Tax Release Certificate. Chicago applies a tax on all sales of Cloud Services (e.g. SaaS, IaaS, PaaS) to Chicago end users. In the absence of a valid Chicago license number, a tax of 9 percent will be applied. |
| Massachusetts | A Massachusetts state-specific ST-4 Resale certificate that includes a valid Massachusetts tax ID number. |
| Maryland | A resale certificate with valid Maryland tax ID number. Form is generated from MD website. |
| Maine | A resale certificate with valid Maine tax ID number. MTC form only valid for out-of-state resellers. In-state resellers must provide ME issued exemption certificate every 3-5 years. |
| Mississippi | A resale certificate with valid Mississippi tax ID number. |
| New York | NY ST-120, NY resellers complete Part A; non-NY resellers complete Part B. |
| Pennsylvania | PA resellers complete PA REV 1220; non-PA resellers complete PA REV 1220 – Line 3 includes your company’s home state ID, Line 7 list the home state and an explanation as to why they are not registered in PA (example “no nexus”). |
| Tennessee | Effective January 10, 2022, Sales and Use Tax Rule 96 Regarding Drop Shipments is Repealed. Out-of-State dealers may issue resale exemption certificates issued from their home state for exemption. However, be aware of the “Economic Nexus” as described in section 2 below. |
“Nexus” after the Wayfair Supreme Court decision in June 2018 – The US Supreme Court held that ‘economic nexus’ applies to determining when a vendor should be registered for sales tax. Subsequent to that decision, most states have adopted economic nexus provisions that mandate taxability when a vendor’s sales exceed certain limits (annual dollar sales volumes and/or number of transactions per year). Physical presence is no longer needed to create a taxable presence. All of the requirements for forms and state license numbers noted above must comply with each state’s economic nexus rules (i.e. if your sales volumes exceed the thresholds you should be registered in every such state and should provide Ingram with a license number for every state into which your sales exceed the limits). “No nexus” assertions do not apply if your sales reach economic nexus levels. Failure to provide license numbers for states to which your sales volumes exceed the thresholds may result in sales taxes being added to your invoice. Please consult with your tax advisors if you have any questions about economic nexus and how those rules apply to your business. If you have any questions, please contact your Sales Representative or Resale Tax Department prior to requesting Bidsheet to ship to any of these States
Manually Filling Out the Uniform Sales and Use Tax Certificate - Multi-jurisdiction Form (USUTC): You can access a paper version of the USUTC here and then upload it when signing up for your account.