What are the key concepts related to sales tax?
Taxes can be difficult to grasp, so we’ve prepared this helpful guide of the most frequently used terminology. You may encounter some of these when filling out the resale certificate form.
Resale certificate – a document that a business may provide to a vendor as proof to avoid paying sales tax if the purchased order is intended for further resale.
A resale certificate requires a state ID number that usually can be found on the state issued sales tax license/seller’s permit.
Sales tax license/seller’s permit – a license issued by the state government agency that allows the business to collect and remit sales tax within the jurisdiction of the state.
Seller – sometimes also called a “Vendor”, is the entity you are purchasing the property or services from.
For transactions between Printify and your company, Printify is the Seller.
Purchaser – sometimes also called a “Buyer”, is the entity purchasing the property or services from the seller.
For transactions between Printify and your company, your company is the Purchaser.
Retailer – a business type where the vendor sells to customers that are the end-user/consumer.
Wholesaler – a business type where the vendor sells to other retailers or wholesalers who will further resell the items/services.
State ID number – regarding resale certificates, it usually refers to the state tax ID number you were issued by the state that allows you to collect and remit sales tax. It can be found on your state issued seller’s permit (also known as sales tax license, Sales and Use Tax Certificate of Registration and similar names).
State specific ID number – when using an ID number for the same state that it was issued by.
For example, when using California sales tax ID number in a California resale certificate.
Out-of-state ID number – a state ID number that was issued by a different state from where it is being applied to.
For example, when using a California sales tax ID number to apply for a resale certificate in the state of Nebraska, in this case the California sales tax ID number would be an out-of-state ID number.
Business license – a permit issued by a government agency that allows one to conduct business operations within the jurisdiction of the government. In the US, each state issues its own business license that authorizes one to lawfully conduct business operations within the state's jurisdiction.
Tangible Personal Property (TPP) – a type of property that can be moved or touched, commonly includes items such as furniture, automobiles and clothing items. This is contrasted with intangible personal property, which includes stocks, bonds, and intellectual property like copyrights and patents.