Selling to resellers
Wholesalers can sell goods without collecting tax from customers who will resell the goods. If the customers won’t resell all the goods, you must collect tax on the items they won’t resell. (See Selling at retail below.) To sell goods to a customer without collecting tax:
- Your customer must give you a completed
Form ST-101 – Sales Tax Resale or Exemption Certificate - Keep the certificate and don’t charge tax on future qualifying sales to the customer
The resale/exemption certificate must have all areas that apply completed, and be signed and dated.
Note
If the certificate isn't complete, it's not valid. Without a valid resale/exemption certificate, you'll be held responsible for the tax you should have collected.
Selling at retail
If you only make wholesale sales, you don’t need a seller’s permit. But if you sell to customers that don’t resell all the goods you sell them, you’re acting as a retailer for those sales. Retailers must get an Idaho seller’s permit and collect sales tax. Read more on our Retailers page.
Example
Lisa owns a restaurant and buys butter, ketchup, and meat from you. She’s given you a completed form ST-101 for your files. Lisa will resell the butter, ketchup, and meat. But she also buys garbage can liners and saucepans to use in the restaurant. You must get an Idaho seller’s permit and charge sales tax on those items that she won’t resell.