A Connecticut Resale Certificate is a state document that allows businesses to buy goods and services for resale without paying sales tax.

Learn how the Connecticut Resale Certificate works, how to get one, and more.

Related: Guide to starting a business in Connecticut

How Does a Connecticut Resale Certificate Work?

When retailers purchase products to resell, they often don’t pay sales tax to the supplier on the purchase. The sales tax will still be paid, but instead of the retailer paying the state sales tax, the retailer charges sales tax to their customer on the final value of the merchandise.

For instance, if a clothing boutique in Hartford, Connecticut, purchases clothes from designers or manufacturers to sell in their store, with a resale certificate the boutique owner won’t pay sales tax on the inventory they purchase. When a customer walks into the boutique and buys a dress, the retailer will add Connecticut’s sales tax to the price of the dress. This sales tax is based on the full price of the dress, and the customer pays this tax at the point of sale, which the boutique collects. Then, typically at the end of the month, the boutique will tally all the sales tax it has collected from its transactions and send the funds to the Connecticut Department of Revenue Services.

It’s important to note that the sales tax exemption is only intended for inventory that will be resold and not for the tax-free purchase of items used in normal business operations, such as paper, pens, etc.

How To Fill Out the Connecticut Resale Certificate Form

Before a business starts selling products or providing taxable services, it must first get a Connecticut Sales Tax Permit (sometimes referred to as a Seller’s Permit) from the Connecticut Department of Revenue Services. After registering for the permit, the Connecticut Department of Revenue Services will provide a sales tax number which will be used to fill out the Resale Certificate.

Step 1: Begin by downloading the Connecticut Resale Certificate Form
Step 2: Identify the name and business address of the seller
Step 3: Indicate whether the seller is a wholesaler, retailer, manufacturer, lessor, or other type of business
Step 4: Provide a general description or itemized list of the products to be purchased from the seller.
Step 5: Include the city and state where products will be shipped along with the sales tax permit number or state tax registration number if shipping to another state.
Step 6: The purchaser will certify the property being purchased is for resale and sign and date the certificate. 

A resale certificate may be used for a single purchase or continual purchases of the same type.  If there will be ongoing purchases, the certificate “Blanket Certificate” must be written on the form.

State of Connecticut Resale Certificate Form

Connecticut Resale Certificate FAQs