Resale Certificate: is a document allowing businesses to make tax-exempt purchases of goods they plan to resell. This certificate is provided by the buyer to online sellers, indicating that the items are intended for resale rather than personal use. When businesses furnish a resale certificate during online transactions, the seller does not collect sales tax. Instead, the responsibility for collecting and remitting sales tax shifts to the business when it sells the items to the end consumer.

This document streamlines the purchasing process for businesses engaged in e-commerce and ensures that sales tax is appropriately applied at the final retail sale. Compliance with state regulations is crucial to avoid legal and financial repercussions.