Washington Resale Certificate to Be Replaced by Seller’s Permit

Effective January 1, 2010, Washington’s self-issued resale certificates will be replaced with seller’s permits issued by the Department of Revenue. The aim of this replacement is to increase compliance and reduce misuse of the certificates, especially in the construction industry which purportedly is responsible for 40 percent of unpaid Washington sales taxes.

Businesses that are not automatically issued permits may apply directly to the Department beginning September 2009. Seller’s permits will be valid for 2-4 years, depending on the date a business registered with the department. However, the permits issued to the construction industry will only be valid for 12 months and must be applied for on a separate application that specifies the materials and labor purchased. (Replacing Resale Certificates with Sellers’ Permits to Curb Abuse, Generate More Than $100 Million Annually, Washington State Department of Revenue, May 19, 2009)

Posted on August 5, 2009