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Sales, Fuel And Special Tax Division Sales Tax Instructional Bulletin 54 - Maine Revenue Services Page 2

ISSUANCE OF A RESALE CERTIFICATE

Provisional Resale Certificate

When a retailer first applies for a sales tax registration, the retailer will be issued a

provisional resale certificate provided the applicant expects to make $3,000 or more in

gross sales over the next year. This certificate is valid from the date of issuance to

December 31

of the third year from the date of issuance. If the certificate is issued

between October 1

and December 31

, the certificate will be valid until December 31

of the fourth year from the date of issuance.

Renewal of Resale Certificate

MRS conducts an annual review of all active registered retailers to determine whether

they qualify to receive a renewal of their “Resale Certificate” for the next period.

“Resale Certificates” are automatically renewed to retailers that have reported $3,000 or

more in gross sales during the previous 12 months.

Incorrect Information on "Resale Certificate" or “Retailer Certificate”

If the information on either of these certificates is incorrect, such as spelling errors or

mailing address, the retailer should contact MRS to correct the information. Please be

aware that the business codes available to be issued by MRS are limited and may not

exactly reflect the business type of the purchaser.

RETAILERS WITH ANNUAL GROSS SALES OF LESS THAN $3,000

In order to qualify to receive a "Resale Certificate", the retailer must have reported $3,000 or

more in gross sales during the previous 12 months. Those retailers not receiving a “Resale

Certificate" must pay sales tax at the time of purchase even if the goods will be resold by the

retailer.

Claiming Credit for Tax Paid

When a retailer has paid a sales tax on goods that have been placed in inventory for

resale, the retailer may claim a credit on the sales tax return for that period. If the credit

exceeds the amount due that period, the retailer may elect to carry the credit to the next

period or receive a refund. The line entitled “Credit for Sales Tax Paid on Goods

Resold” must be used for this purpose.

Qualifying Prior to the Annual Review

If a retailer does not qualify to receive a “Resale Certificate" but subsequently makes

sales sufficient to qualify, the retailer may petition MRS in writing to reevaluate its

account. The petition must provide documentation, such as the subsequent filing of a

sales tax return, to support the fact that gross sales for the previous 12 months equal or

exceed $3,000.

Sales, Fuel And Special Tax Division Sales Tax Instructional Bulletin 54 - Maine Revenue Services Page 2