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RESPONSIBILITIES OF A RETAILER AS A “PURCHASER”

The “Resale Certificate” issued to a retailer must be kept by the retailer as an original. Copies

should be made of the certificate portion only and provided to the retailer’s suppliers at the time

of purchase. When a person purchases goods and claims to the seller that the purchase is exempt

because the goods are being purchased for resale, that person must document that claim by

providing the seller with a copy of their valid “Resale Certificate”. Without this documentation,

the seller is required to collect sales tax if applicable to the products being purchased.

If a retailer purchases items for resale on a continuous basis from a particular supplier, the

retailer is not required to supply a copy of the resale certificate for each individual sale. Instead,

the retailer can use its current valid "Resale Certificate" on file with the supplier as a blanket

certificate to cover all subsequent purchases for resale, as long as the certificate remains valid.

The retailer must state to the supplier at the time of each sale that the particular purchase is

exempt for resale and is covered by the certificate on file. When new “Resale Certificates" are

issued, the retailer is responsible for providing copies to its suppliers to replace the certificate on

file. Failure to do so will require the supplier to charge tax on purchases until a valid certificate

is received.

RESPONSIBILITIES OF A RETAILER AS A “SELLER”

When a retailer receives resale certificates from its customers, the retailer must retain these

certificates on file for a minimum of 6 years. No customer can make a claim for resale by simply

providing an identification number. Claims for any sales tax exemption must be documented.

Customers who claim that their purchase is for resale must document that claim with a valid

"Resale Certificate" issued by MRS. The “Resale Certificate” must be properly completed and

signed by the customer certifying that the merchandise being purchased will be resold by it. If

the date of the sale falls within the effective dates on the certificate, the certificate has been

properly completed and the items purchased are items typically purchased for resale by the

customer’s business type, the good faith of the seller will not be questioned. However, if the

seller is aware of the fact that the customer is no longer in business or has reason to believe that

the goods purchased will not be resold, the seller will be held responsible for the sales tax

applicable to that transaction.

SALES TO OUT-OF-STATE RETAILERS THAT DO NOT HAVE A MAINE

SALES TAX ACCOUNT

Maine retailers sometimes make sales to nonresidents who claim to be engaged in a retail

business out-of-state. Sales for resale to these customers qualify for exemption but require some

form of supporting documentation.

The multi-jurisdictional “Uniform Sales & Use Tax

Certificate” issued by the Multistate Tax Commission is an acceptable “resale certificate” for

these customers to use. (A copy of this form can be found on MTC’s website at

) On this form, the customer confirms it is in a

retail business and provides the sales tax registration number from its home state. A copy of a

“resale certificate” or similar document issued by the purchaser’s home state is not valid in

Maine. See Rule 301 for acceptable alternative documentation that would support tax-free sales

to a nonresident retailer.

Sales, Fuel And Special Tax Division Sales Tax Instructional Bulletin 54 - Maine Revenue Services Page 3