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How to prepare Resale Certificate New York

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About Resale Certificate New York

A Resale Certificate in New York is a document issued by the New York State Department of Taxation and Finance that allows certain businesses to make purchases of tangible personal property for resale without paying sales tax. This certificate is also known as Form ST-120. The resale certificate is necessary for businesses that are registered with the New York State Department of Taxation and Finance and engage in the sale of tangible goods. It is particularly relevant for retailers, wholesalers, and resellers that plan to resell the purchased items to ultimate consumers or other businesses. By obtaining a resale certificate, businesses can provide evidence to their suppliers that the products they are purchasing are for resale purposes, allowing them to avoid paying sales tax on those particular transactions. However, it is important to note that if the purchased goods are used for any purpose other than resale, the business may become liable for the uncollected sales tax. It is crucial for businesses to abide by the rules and regulations outlined by the New York State Department of Taxation and Finance and use the resale certificate responsibly. Failing to do so may result in penalties and legal consequences.

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