Obtaining a Maine Resale Certificate
The first step you need to take is to apply for a Maine Retailer Certificate. This certificate will provide you with a Sales Tax ID number. You can then complete the resale exemption certificate form by providing your Sales Tax ID number. Present a copy of this certificate to suppliers when you wish to purchase items for resale.
Maine Resale Certificates Information
- Maine Resale Certificates are valid from date of issue to December 31st, plus three years.
- The certificate will renew if the holder reports $3,000 or more in gross sales the previous 12 months.
- Sales and use tax is due monthly for most businesses, but the filing frequency depends on the tax collected.
- The resale certificate is kept by the seller, not filed with Maine.
- Sellers are not required to accept resale certificates.
How to Obtain and Use a Maine Resale Certificate
The certificate allows a retailer to purchase items for resale without paying Sales Tax. Click the application number next to the organization to download a form. Return the completed form with documentation to Maine Revenue Service. Call (207) 624-9693 for assistance. The steps for a reseller permit include obtaining the application and reporting income over $3,000.
Renewal and Expiration
Maine reviews accounts annually and reissues expiring certificates to qualified retailers. Certificates expire every 3-5 years on December 31st depending on original issue date.
Sales Tax Application Process in Maine
How do I get a sales tax certificate in Maine? Most new businesses are set up to file and pay sales and use tax monthly, but depending on the tax collected, your business may have a different filing frequency. Sellers are not required to accept resale certificates.
Important Information on Maine Resale Certificates
- A resale certificate allows a business to buy inventory without paying sales tax.
- Suppliers do not have to accept resale certificates. However, refusing an invalid certificate makes the supplier responsible for sales tax.
Key Steps to Obtain Maine Resale Certificates
- Register for a sales tax license
- Project over $3,000 in annual gross sales
- Automatically receive certificate
Use certificate when buying inventory for resale to avoid paying sales tax.
Additional Details on Maine Resale Certificates
- In Maine, if you project over $3,000 in revenue, you’ll be automatically issued a resale certificate to present to vendors.
- Certificates expire every 3-5 years on December 31st depending on issue date.
Reminder on Maine Resale Certificate Regulations
If you fraudulently use a resale certificate, that’s tax fraud. In Maine, the penalty is repaying tax plus a 75% penalty. You could also face over $5,000 in fines and years in prison. Vendors don’t have to accept certificates, but refusing an invalid one makes the vendor liable for sales tax.
Conclusion
It takes up to 20 business days to receive sales tax permits and resale certificates. Visit Maine’s revenue website for forms and more information.