Do I need to pay sales tax to Knitwise?Updated 2 years ago

The amount of taxes and the collection process depend on various factors, including your business location. You can become exempt from our sales tax charge in a specific state if you register for a seller’s permit and submit a resale certificate. Please send related documents to [email protected] for review. 

After you submit your resale certificate, we’ll review it and notify you of approval or rejection. If it’s rejected, you can resubmit. Please remember, your resale certificate must be approved by Knitwise before placing orders to avoid sales tax. We don't refund tax for orders made before certificate approval.

Keep in mind that even if you submit a resale certificate, you may still be liable to charge sales tax to your customers. 

Seller's Permit or Resale Certificate

A seller's permit or resale certificate is a document that enables retailers to buy goods for resale without paying local sales tax on those items. With a resale certificate (also called a tax exemption certificate), it's the seller's responsibility to collect the appropriate sales tax from the customer when the items get sold. Without a resale certificate, the purchaser must pay sales tax on the items they intend to resell. In summary, a resale certificate allows your business to avoid paying sales taxes on items purchased for resale to customers.

You need to have a sales tax permit to get a resale certificate. You can learn how to register for a sales tax permit in every state here.

For more assistance on tax-related matters, we recommend consulting with a tax expert or visiting the IRS website at www.irs.gov.