Sales Tax Fundamentals
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How to Use a Nebraska Resale Certificate
byMarch 10, 2022
If you purchase a product with the intent to resell it in the state of Nebraska, you can present a valid Nebraska resale certificate to avoid paying sales tax on that purchase. Here’s what you need to know as a seller when using a Nebraska resale certificate or if one of your customers presents you with a resale certificate when buying your products.
If you wish to use a Nebraska resale certificate
To obtain a resale certificate in Nebraska, you will need to complete the Nebraska Resale or Exempt Sale Certificate for Sales Tax Exemption (Form 13). Keep in mind that you first need a valid sales tax permit, as your sales tax identification number is required to complete the form.
Form 13, section B may be completed and issued by governmental units or organizations that are exempt from paying Nebraska sales and use taxes. Here is a list of products in Nebraska that qualify as exempt purchases. It’s important to note that most nonprofit organizations are not exempt from paying sales and use tax.
Check out this comprehensive document from the Nebraska Department of Revenue that covers some frequently asked questions regarding resale certificates.
If you are presented with a Nebraska resale certificate
As a retailer, you are responsible for a few simple steps when accepting a Nebraska resale certificate from a buyer. Don’t skip this step, because accepting a fraudulent resale certificate – even unknowingly – may result in fines and penalties.
- Make sure the resale certificate is properly completed – Check to ensure the Nebraska resale certificate is signed and includes the buyer’s Nebraska sales tax identification number.
- Verify the certificate with the state – Online verification is not available. Purchaser will need to provide you with Form 13 which you can call in and verify (see phone number at bottom of page or bottom of resale certificate/Form 13).
If you have any questions or comments about Nebraska resale certificates or collecting Nebraska state sales tax, you should feel free to start the conversation in our Sales Tax for E-Commerce Sellers Facebook group.
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