Multistate uniform resale certificate

A seller can document a wholesale sale to a buyer that is not required to be registered with the Department of Revenue with the MTC Uniform Sales and Use Tax Certificate - Multijurisdiction, instead of a copy of a reseller permit. WAC 458-20-102(7)(d)(i) lists it for that buyer.

Who qualifies

• A buyer that is not required to be registered with the department under RCW 82.32.030 (WAC 458-20-102(7)(d)(i)).
• A nonresident buyer that is not engaged in business in Washington and not required to be registered, but buys articles here to resell in the regular course of business outside the state (WAC 458-20-102(10)(a)).
• The purchase must be a wholesale purchase. WAC 458-20-102(6): "The buyer may use a reseller permit only when making wholesale purchases."

What qualifies

• Purchases for resale. WAC 458-20-102(5) treats every sale as a retail sale unless the seller takes a reseller permit, a Streamlined Sales and Use Tax Agreement Certificate of Exemption or other certificate authorized by RCW 82.04.470, or the data elements described in subsection (7).

Not covered

• Tax-exempt retail purchases. WAC 458-20-102(6): "The reseller permit may not be used when making tax-exempt retail purchases." Those need the exemption's own certificate.
• A certificate that is not properly completed. The rule accepts "a properly completed" certificate.
• A buyer that is required to be registered. WAC 458-20-102(7)(a) lists the Streamlined Sales and Use Tax certificate, with the reseller permit number, for that buyer, and the rule does not list the Multistate Tax Commission certificate, unless the department authorizes it under WAC 458-20-102(7)(a)(ii); we found no such authorization, so confirm with the Department of Revenue.

What the buyer gives

A properly completed Multistate Tax Commission Uniform Sales and Use Tax Certificate - Multijurisdiction. In Sundry the buyer uploads the completed certificate and Sundry reads it.

What the seller keeps

The completed certificate. WAC 458-20-102(7): the seller has the burden of proving the sale was at wholesale, and may meet it by taking the document at the time of sale or within one hundred twenty days after the sale. A seller that accepts the certificate is not required to verify with the department whether the buyer is required to be registered (WAC 458-20-102(7)(e)). If the certificate comes more than one hundred twenty days after the sale and it does not name the sales, the buyer must identify the sales it covers in other documentation the buyer signs (WAC 458-20-102(7)(l)). If the seller has none of these documents, the seller is liable for the tax unless it proves by facts and circumstances that the sale was made at wholesale (WAC 458-20-102(7)(h)).

Common mistakes

• Accepting a certificate for something the buyer will use rather than resell. WAC 458-20-102(7)(h) asks whether the items are consistent with the buyer's business and of a type it would normally buy at wholesale.
• Checking the resale box for a purchase that is not for resale. Under WAC 458-20-102(6) the reseller permit may be used only for wholesale purchases; the form's other exemptions follow their own rules (RCW 82.08.050).
• Taking a nonspecific certificate long after the sale. WAC 458-20-102(7)(l) says a nonspecific certificate not obtained within one hundred twenty days is generally not, in itself, acceptable proof.

Common questions

Does a seller have to check whether the buyer is required to be registered in Washington?

No. WAC 458-20-102(7)(e) says a seller that accepts a certificate listed in (7)(d) is not required to verify with the department whether the buyer is required to be registered.

Where does a buyer get the certificate?

WAC 458-20-102(7)(d) says the MTC Uniform Sales and Use Tax Certificate - Multijurisdiction (the rule's own words are "uniform sales and use tax exemption certificate") may be obtained on the department's website at dor.wa.gov.

Can a buyer that is not required to register still get a reseller permit?

Yes. The last sentence of WAC 458-20-102(10) says a nonresident buyer that is not required to be registered may also apply for and receive a reseller permit. That sentence covers nonresident buyers; eligibility is in WAC 458-20-10201.

Sources

• WAC 458-20-102 (5), (6), (7)(a), (7)(d), (7)(e), (7)(h), (7)(l), (10)
• RCW 82.04.470 (3)(a)(i), (3)(b)
• WAC 458-20-10201 Eligibility for a reseller permit