How to Get a Resale Certificate in Arizona

Suppose you’re starting a limited liability company (LLC) in Arizona and planning to sell goods subject to sales tax. In that case, you’ll need to get a resale certificate, or several of them, before doing business. 

But don’t worry; this guide lays out all you need to do to get a resale certificate in Arizona.

What Is a Resale Certificate?

If your LLC expects to sell tangible goods in Arizona, a resale certificate will enable you to purchase those goods without paying sales tax. This prevents your goods from being double taxed, as you will need to charge your customer’s sales tax when they buy the goods. 

If you purchase goods without paying sales tax and neglect to charge sales tax to customers who buy those goods, or if you fail to sell the goods, you and your LLC will be responsible for the sales tax and could face steep fines. 

If you purposely purchase an item not intended for resale, such as office equipment, and use your resale certificate to avoid paying sales tax, that’s tax fraud, a federal offense.

The most common penalty for tax fraud in Alaska is paying the unpaid sales tax and a fine, but it could be significantly worse. The most common penalty for tax fraud in Arizona is paying the due sales tax and interest, but it could be considerably worse.   

Each resale certificate applies to only one vendor, so you’ll need one for each of your vendors. 

Suppliers and vendors do not have to accept resale certificates. However, a vendor might refuse a resale certificate because if your certificate is invalid, the vendor would be responsible for the sales tax.

How to Obtain a Resale Certificate in Arizona

To obtain a resale certificate in Arizona, visit the department of Arizona Department of Revenue website. 

You’ll download the form and fill out a copy for each vendor. 

Once you have the certificate, present it to your vendor and keep a copy for your records.

Does a Resale Certificate Expire in Arizona?

In Arizona, the expiration date of the resale certificate depends on the time frame you specified. The form states the following:

In Closing

In Arizona, a resale certificate is relatively easy to obtain yet provides significant savings. It will also help you and your LLC avoid potentially substantial penalties. 

Be sure to present the correct certificate to your vendors and keep track of expiration dates so your certificates are always current. You don’t want to find yourself paying sales tax when you don’t have to.