Sales tax terminology explained
Taxes can be a hurdle when growing your business, so we’ve prepared this guide to help you master the basics. Below, you’ll find definitions for the key terms you’ll encounter when managing sales tax on Printify. You can also learn more about how sales tax applies to you here.
Resale certificate – A document provided to a vendor (like Printify) as proof that you intend to resell the items. This allows you to avoid paying sales tax on the initial purchase. A resale certificate requires a state ID number, which is usually found on the state-issued sales tax license/seller’s permit.
Sales tax license/seller’s permit – A license issued by a state government agency that allows a business to collect and remit sales tax within that state's jurisdiction.
Seller – Sometimes called a “Vendor,” this is the entity you are purchasing property or services from. For transactions between Printify and your company, Printify is the Seller.
Purchaser – Sometimes called a “Buyer,” this is the entity purchasing the property or services. For transactions between Printify and your company, your company is the Purchaser.
Retailer – A business type where the vendor sells directly to customers who are the end-users or consumers.
Wholesaler – A business type where the vendor sells to other retailers or wholesalers who will further resell the items or services.
State ID number – Regarding resale certificates, this usually refers to the state tax ID number issued by the state to allow you to collect and remit sales tax. It can be found on your state-issued seller’s permit.
State-specific ID number – An ID number used in the same state that issued it. For example, using a California sales tax ID number for a California resale certificate.
Out-of-state ID number – A state ID number issued by a different state from where it is being applied. For example, using a California sales tax ID number to apply for a Nebraska resale certificate.
Business license – A permit issued by a government agency that allows one to conduct business operations within a specific jurisdiction. In the US, each state issues its own license.
Tangible Personal Property (TPP) – A type of property that can be moved or touched, such as furniture, automobiles, and clothing. This is the opposite of intangible personal property, which includes stocks, bonds, and intellectual property.