Nevada – Resale Certificates Versus Seller’s Permits

SALT Report 3361 – Nevada recently published guidance in their April 2014 issue of Tax Notes.  Among other items of interest, the state is stressing the importance of collecting the proper support for non-taxable transactions.  According to the publication, the department was receiving a number of requests from taxpayers seeking to secure a “seller’s permit” for the customers they were selling to in order to support non-taxable sales.  This is not correct.

As in other jurisdictions, Nevada points out that “seller’s permits” and “resale certificates” are not interchangeable.   A taxpayer must collect, retain and be able to retrieve a valid resale certificate in order to support non-taxable transactions.

With the technological advances occurring across the business community and the movement into cloud resources, the expectation to produce valid resale certificates has increased dramatically over the last 20 years.  It is one of the most easily resolvable sales and use tax assessment issues.

For Further Information:

Nevada Tax Notes Issue 185 April 2014