Do I need a resale certificate from the same state as I have my inventory stored in for avoiding taxes from our suppliers?

Asked 3 years ago

US business registration question : C corp registered in Delaware. Inventory stored in Idaho. It means we need a resale certificate from Idaho (so we don't have to pay tax from our suppliers when we order our inventory and have it shipped to Idaho). Is that right? Thanks!

Resale certificate Sales tax Business registration Sales tax

Abeeha Qasmi

Monday, July 12, 2021

The short answer is Yes. Generating a resale certificate and registering both states, Idaho and Delaware, for your Shopify business will save you from overpaying the taxes. Make sure you have a sales tax account in these two states to collect and remit taxes accurately. You can use this number to avoid paying taxes on resale items to your suppliers.