The Connecticut Department of Revenue Services has issued an informational publication concerning the proper use of resale certificates. The gross receipts from the sale of a taxable item or service are subject to sales tax unless the purchaser issues a properly completed resale or exemption certificate to the retailer at the time of the sale. Retailers must keep a copy for their records. The publication discusses who may issue resale certificates, what information must be included on a resale certificate, and the retailer’s responsibility in accepting resale certificates.
Retailers may only accept resale certificates in good faith from the issuer. Resale certificates may be issued for one purchase or may be issued as a blanket certificate for a continuing line of purchases. Connecticut resale certificates should have the tax identification number from the issuer’s state of business or, if none, the Federal Employer Identification Number. If an issuer is not required to have a Connecticut Sales and Use Tax Permit, the issuer should attach a statement to the resale certificate stating that the issuer is not required to have a Connecticut Sales and Use Tax Permit because it is not making sales in Connecticut or making sales that are otherwise subject to Connecticut sales and use taxes (Informational Publication 2009 (15), Connecticut Department of Revenue Services, April 8, 2009).