Methods for Documenting Sales for Resale

Selling dealers must document all exempt sales for resale. Dealers may use any one of these methods to document a sale for resale:

Method 1 - Dealer gets a signed copy of the Annual Resale Certificate each year from the purchaser. Selling dealers must not discard certificates from prior years. Dealers must retain all records until sales tax may no longer be assessed under the statute of limitations.

Method 2 - Dealer gets a transaction resale authorization number. If the purchaser does not present an Annual Resale Certificate but knows his or her sales tax number, the selling dealer can get a transaction resale authorization number through either an automated toll-free telephone system or an online verification system.

By Telephone: The nationwide toll-free number is 877-357-3725. The selling dealer must key in the purchaser's sales tax certificate number using a touch-tone phone.

Internet: Visit our Internet site at www.myflorida.com/dor/gta.html for the online verification system. The selling dealer must first enter his or her own 13-digit sales tax certificate number. Once this is verified the selling dealer may then enter up to five customers' sales tax certificate numbers.

Both the telephone and online systems will issue a 13-digit transaction authorization number or alert the selling dealer that the purchaser does not have a valid resale certificate. The transaction resale authorization number is valid for that purchase only, and is not valid for other resale purchases made by the same purchaser. (The selling dealer must get a new transaction resale authorization number for each resale transaction.) The sales invoice, purchase order, or other evidence of the sale must contain the transaction authorization number and this statement, signed by the purchaser: "The purchaser hereby certifies that the property or services being purchased or rented are for resale."

Method 3 - Dealer gets one copy of the purchaser's Annual Resale Certificate for certain on-account or open-account customers. Selling dealers can get a copy of the Annual Resale Certificate for the first transaction only, and do not need a new certificate from buyers who purchase on account from a dealer on a continual basis. "Purchase on account from a dealer on a continual basis" means the selling dealer has a continuing business relationship with the purchaser, who makes recurring purchases on account in the normal course of business. A sale "on account" means the dealer extends credit to the purchaser and records the debt as an account receivable, or the dealer sells to a purchaser who has an established or C.O.D. account, similar to an "open credit account." Purchases are made on a "continual basis" if the selling dealer makes sales to the purchaser no less than once every twelve months in the normal course of business.

Method 4 - Dealer gets a resale authorization number electronically. Selling dealers can get vendor resale authorization numbers for customers by uploading an electronic file of up to 50,000 customer names and numbers to the online verification system on our Internet site at www.myflorida.com/dor/gta.html. Selling dealers can also send an electronic file to us. Once issued, vendor resale authorization numbers are valid through the end of the calendar year. Electronic resale authorization numbers issued in November and December, are valid through the end of the next calendar year. For more information, contact Taxpayer Services.