WA – Good-bye Resale Certificates, Hello Reseller Permits
Posted by salestax on July 13, 2009
The WA Department of Revenue will be issuing Reseller permits to those approved by the department. Self-completed WA resale certificate will no longer be valid as of 1/1/10. The WA legislature says that this change will prevent over $100M Sales Tax being exempted by those who abuse the resale certificate – of which they blame 40% on the construction industry.
A bright side: the Reseller Permits will be issued Free of Charge.
If you’re a registered business as of 1//109, your new reseller permit will be valid for 4 years (the current expiration period for resale certificates). However, if you’re a new business after 1/1/09, then your reseller permit will only be valid for 2 years. **Unless you’re in the construction industry: these reseller permits will expire every 12 months.
Let’s hope that the WA dept of revenue puts expiration dates on the permits; otherwise, how will vendors know whether the permit they received was for a business pre/post 2009 or categorized with the construction industry.
See the Newsroom release here: http://dor.wa.gov/Content/AboutUs/newsroom/html/051909B.aspx
And further information about the change here: http://dor.wa.gov/Content/AboutUs/newsroom/html/051909B.aspx
