How to Get a Resale Certificate in Kentucky?

If you are a retailer selling tangible personal property in Kentucky, you need to obtain a resale certificate (Form 51A105). The resale certificate will exempt you from paying sales tax to customers in Kentucky on items purchased for resale. You can get a resale certificate from the Kentucky Department of Revenue website. To complete the form, you will need to provide your business name, address, and tax identification number. You must also indicate the type of products or services you purchase for resale. You should keep a copy of the completed resale certificate for your records.

Depending on your business type, you may need to obtain other licenses for your operations in the state of Kentucky. These include insurance requirements and specific federal, operational, environmental, or local permits. You should check with your county, city, or planning/zoning office for more information about these requirements.

Kentucky is a member of the Streamlined Sales and Use Tax Agreement, allowing buyers to make tax-exempt purchases from vendors in any state participating in the agreement. However, you must present a valid sales tax exemption certificate to the vendor before making any purchases. You can purchase items for resale without paying taxes, but you must be sure that the item is something that you will sell to your customers.

If you’re buying items for resale, be sure to present a completed Kentucky Resale Certificate (Form 51A105) when making the purchase. The form needs to be filled out completely and correctly, or you could end up owing taxes that should have been collected from your customers.

If your company is a member of the Streamlined Sales and Use Tax Agreement, you can check with the buyer’s Department of revenue to verify that they have a valid resale certificate in Kentucky or another state. The resale certificate should include the date, seller’s name, and address. It should also list the legal basis for the exemption being claimed.

How to Fill out the Kentucky Resale Certificate Form 51A105?

Filling out the Kentucky Resale Certificate is straightforward, but ensuring accuracy is important to avoid any issues with your purchases. Here’s a step-by-step guide:

• Download the Kentucky Resale Certificate (Form 51A105) from the Kentucky Department of Revenue website.
• Fill in your business name exactly as it appears on your business license or tax return.
• Enter your complete business address, including street address, city, state, and zip code.
• If you have an EIN, enter it here. If not, leave it blank.
• If you have a Kentucky sales and use tax ID number, enter it here. You can apply for one online or by mail if you don’t have one.
• Enter the date you are filling out the form.
• Enter the name of the business you are purchasing from.
• Enter the vendor’s complete address.
• Sign the form.