Resale Tax Certificate
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.
Non-Profit Tax Exemption Certificate
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.