
In Texas, the sale of a taxable item that is intended for resale is exempt from sales tax. For example, if you operate a shop, you can purchase inventory for the shop tax-free from a wholesaler. This is because you intend to sell the goods to customers and collect the tax on the sales.
In order to purchase resell goods tax-free, you need to provide the seller with a resale certificate. By law, the seller is required to charge you sales tax on the goods if you do not provide a certificate.
In essence, the resale certificate is a guarantee to the seller that you intend on reselling the items meaning the tax will not be collected at the time of purchase.
In Texas, any educational organization can apply for tax-exempt status. If granted,the organization will not have to pay sales tax on products purchased for educational purposes.