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How to use an Idaho resale certificate

by TaxJar November 1, 2023

Please note: This blog was originally published in 2020. It’s since been updated for accuracy and comprehensiveness.

If you buy and resell tangible goods in Idaho, you are not responsible for paying sales tax on those goods if you can provide your vendor with a resale certificate. An Idaho resale certificate is a form that resellers use to prove their exempt status to wholesalers. This post will go over the requirements for using a resale certificate as well as accepting one.

Idaho resale certificate info for resellers

There are currently three ways to request a resale certificate from the Idaho State Tax Commission. The quickest way to get a resale certificate is to file online using Taxpayer Access Point (TAP). You can also contact the state tax commission directly to request an exemption certificate. Finally, you have the option to go through an authorized representative of the tax commission.

The Idaho sales tax resale or exemption certificate (also known as form ST-101) must be filled out completely. There is space for both the buyer and seller names and addresses. In section one, you’ll describe the nature of the business and the goods you’re buying. On line b of the first section, be sure to check the box next to “Wholesale only; no retail sales.” Under the Buyer section, fill out the required information, including your federal employer identification number (EIN), and then sign it. Signing the form certifies that all the information on it is true to the best of your knowledge and that you understand that there are criminal repercussions for lying on this form.

If you’re not based in Idaho but you’re buying wholesale goods from an Idaho seller, you can use the Uniform Sales and Use Tax Certificate – Multijurisdiction form instead. You need to fill it out completely and certify that you’re making true statements on the form under penalty of the law.

Idaho resale certificate info for vendors

The Idaho State Tax Commission defines a wholesaler as an organization or person who sells or leases goods to an organization or a person who will then resell or lease those goods to another party.

Remember that wholesalers receive the certificate at the time of purchase to waive sales tax. The seller may be responsible for presenting the certificate but you’ll have to do your due diligence in accepting it. If the certificate isn’t complete or you have personal knowledge that contradicts the information on it, it automatically isn’t valid and you shouldn’t accept it.

If you are a vendor and have received a completed certificate, you can use the commission’s TAP system to verify resale certificates. Once you’ve verified the certificate, it’s good for all transactions between you and this particular buyer, as long as it involves the products described on the certificate. Just remember that you’ll need to keep thorough records of your tax exempt transactions. Keep the original certificate and give a copy to the buyer.

For more about Idaho resale certificates, you can contact the Idaho State Tax Commission.

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