Illinois – Sales for Resale

SALT Report 2520 – The Illinois Department of Revenue issued a general information letter regarding sales for resale and the use of the MTC Uniform Sales & Use Tax Certificate – Multi-jurisdiction. Generally, if an Illinois retailer sells tangible personal property and delivers it in Illinois, sales tax is due on that item unless it is exempt. However, retailers can claim the resale exemption if the retailer makes sales to a purchaser who in turn sells the purchased property.

To claim the resale exemption, the purchaser should provide the retailer with a certificate of resale. The Department will accept a signed certificate of resale as proof that an item was purchased for resale purposes if it includes the following information:

  • The seller’s name and address,
  • The purchaser’s name and address,
  • A description of the items purchased for resale,
  • The purchaser’s signature, or the signature of an authorized employee or agent of the purchaser,
  • Date of signing, and
  • The registration Number, Resale Number, or Certification of Resale to out-of-State Purchaser

If a purchaser fails to use an active registration number or resale number, or fails to provide a resale certificate to the retailer, the Department will presume that the sale was not for resale. This presumption may be rebutted by providing other evidence that the sale was for resale, such as, an invoice from the purchaser to his customer showing that the item was actually resold, and a statement from the purchaser explaining why it does not have a resale number and a certifying statement that the purchase was for resale.

The Department warns that there is risk to accepting or providing this alternative type of certificate. Primarily because an Illinois auditor is more likely to require that additional information be provided as evidence that the particular sale was, in fact, a sale for resale.

Additionally, the Department will accept the MTC Uniform Sales and Use Tax Certificate – Multijurisdictional as a certificate of resale if it contains all of the information indicated above.

For Further Information

Illinois Department of Revenue – General Information Letter ST 13-0018-GIL