When a business purchases inventory to resell, it can do so without paying sales tax by providing a Wyoming Sales Tax Certificate of Exemption (often referred to as a Resale Certificate) to its vendor.

Learn more about how the Wyoming Sales Tax Certificate of Exemption works, how to get one, and more.

What is a Sales Tax Certificate of Exemption?

When a business purchases inventory for resale, such as a specialty candle shop buying scented candles, it can provide the supplier with its sales tax certificate of exemption. This certificate indicates that the merchandise is being purchased for resale purposes and is, therefore, exempt from state sales tax at the time of purchase.

However, when the specialty candle shop sells scented candles to retail customers, it must collect sales tax on the full selling price. The collected sales tax is then remitted to the Wyoming Department of Revenue on a regular basis – monthly, quarterly, or annually depending on the business’s sales volume.

It’s important to note that the sales tax exemption applies only to inventory intended for resale. Purchases of supplies or equipment used in the normal course of business operations are generally subject to sales tax.

Steps for filling out the Wyoming Streamlined Sales Tax Certificate of Exemption (Form F0003)

Before a business starts selling products or providing taxable services, it must first get a Wyoming Sales Tax License from the Wyoming Department of Revenue. The license is sometimes referred to as a seller’s permit, sales tax number, or sales tax license. After registering for the sales tax license, the Wyoming Department of Revenue will provide a sales tax number that will be used when filling out the Certificate of Exemption.

Step 1: Begin by downloading the Wyoming Certificate of Exemption SSTGB Form F0003

Step 2: Indicate whether the Multistate Supplemental form is being attached. This is the second page of the exemption form. Several states joined together under the Streamlined Sales Tax Agreement to accept one resale form to make it easier for merchants to register.

Step 3: Check whether the certificate is for a single purchase. Otherwise, the form is considered a blanket certificate, which allows a buyer to purchase from a vendor multiple times without having to file a separate certificate.

Step 4: Include the name, address, and State Tax ID Number. If there is no State Tax ID Number, enter the purchaser’s FEIN and Driver’s license number.

Step 5: Enter the name and address of the seller.

Step 6: Check the box that corresponds closest to the type of business the buyer is in.

Step 7: Indicate the reason for exemption. Most retailers are going to check box G for Resale.

Step 8: The purchaser will certify the property being purchased is for resale, including their title, phone number, and email address, and then sign and date the certificate.

Wyoming Sales Tax Certificate Of Exemption FAQs

Where is the Sales Tax Certificate of Exemption filed?

In Wyoming, the Sales Tax Certificate of Exemption is not filed with any government agency. Instead, it is kept by the seller (the business selling the merchandise for resale).

Does a Wyoming Certificate of Exemption Expire?

Wyoming Certificates of Exemption do not expire.

How often is Wyoming sales tax due?

Most new businesses in Wyoming are set up to file and pay sales and use tax monthly, but depending on the amount of tax collected, your business may have a quarterly filing frequency instead.

How much does a Wyoming Certificate of Exemption Cost?

There is no cost for a Certificate of Exemption in Wyoming.

Are sellers required to accept resale certificates?

Sellers are not required to accept resale certificates for tax-exempt purchases; however, most do. If the vendor doesn’t accept the certificate, the buyer will have to pay sales tax on the merchandise being purchased.

In most cases, the buyer of the goods will be able to get a credit on a later sales tax filing.

What steps should a business take to accept a resale certificate?

When a business is presented with a sales tax exemption certificate, the seller has the burden of proof to verify that the buyer’s information is correct and to keep these records. Failing to verify this information may result in the seller being liable for paying Wyoming sales taxes.

Before accepting a sales tax exemption form from a buyer, the following steps should be taken.

– Review the resale certificate to make sure it is completely filled out.
– Verify the purchaser’s Wyoming Sales Tax License is valid and active by calling the Wyoming Department of Revenue at 307.777.5200.
– Sellers are also responsible for examining the certificate and evaluating whether the goods sold are reasonably consistent with the purchaser’s line of business. For example, if the buyer’s business is a car dealership but wants to purchase office supplies tax-free, the seller should investigate further.
– Keep a file of all resale certificates in case of an audit.

Is a Certificate of Exemption the same thing as a business license?

No, a business license and a Certificate of Exemption are not the same thing. Each serves a different purpose and is used in different contexts.

A business license is a permit issued by a government agency that allows individuals or companies to conduct business within the government’s geographical jurisdiction. It is the authorization to start a business issued by the local government. Business licenses are typically required for most types of businesses and must be renewed periodically.

On the other hand, businesses use a Certificate of Exemption when purchasing goods intended for resale. This certificate allows a retailer to buy these goods without paying sales tax under the assumption that the tax will be collected from the retail customer at the point of sale.

So, while a business license gives you the legal right to operate a business, a Certificate of Exemption enables a business to purchase items for resale without paying sales tax.

Is a Sales Tax Certificate Of Exemption the same as a Sales Tax License?

No – The Sales Tax Certificate of Exemption and Resale Certificate are commonly thought of as the same thing, but they are actually two separate documents. The Sales Tax License (also called a Sales Tax Permit) allows a business to sell and collect sales tax from taxable products and services in the state of Wyoming, while the Certificate Of Exemption allows the retailer to make tax-exempt purchases for products they intend to resell.