True," thank you for viewing this presentation from the Tennessee Department of Revenue. This presentation covers the use of the sales tax Certificate of Resale. A Certificate of Resale is provided to businesses that register for a sales and use tax account with the Tennessee Department of Revenue. The business may use a Certificate to purchase property or services that it intends to sell without paying sales and use tax. Resale certificates are issued by location, so each location needs its own certificate. Certificates do not expire, but they are no longer valid when a location is closed. Here you see an example of a resale certificate. You will notice it has the entity's information in the upper left corner, as well as in the right corner. The effective date, account ID, and location ID for which the exemption applies are also included. The information in the middle of the certificate is very important. The certificate indicates that these purchases are to be made for subsequent resale without payment of sales or use tax. A copy of this certificate should be retained by each vendor who receives the retail exemption request from their customer. The original version of this certificate should be kept by the business on file, and copies presented to each vendor as appropriate. Vendors are required to keep resale certificates in their records for three years, plus the current year. Vendors will become liable for sales and use tax if they unlawfully solicit a resale certificate for items they know will not be used for resale. The Tennessee Department of Revenue is happy to help verify a resale certificate. These certificates can be verified on the 10tap homepage at tn.gov/revenue. To verify the validity of a certificate, locate the lookup information and select "Verify a Sales and...
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