Resources Blog Reporting
by TaxJar January 6, 2025
If you purchase a product that you intend to resell in the state of Arkansas, you can often avoid paying sales tax on the purchase by presenting your vendor with a resale certificate. Always keep in mind that you should only use your resale certificate to buy items you intend to resell or that you intend to use as a component part of an item for resale or incorporated into a service that will be taxed when it is sold. Any other use of an Arkansas resale certificate (such as buying personal items) is usually considered unlawful.
Arkansas provides reseller’s with an exemption certificate. If you wish to buy items for resale, fill out the entire certificate and present it to your vendor.
You can find full instructions on using an Arkansas resale certificate here .
If you are not registered to collect sales tax in Arkansas, you can use your state’s sales tax permit to buy items for resale from Arkansas vendors. Also keep in mind that vendors reserve the right to refuse to accept a resale certificate.
Important to note: In Arkansas, the buyer, not the vendor, is ultimately on the hook if use of a resale certificate turns out to be fraudulent. In other words, if state taxing authorities discover that you used a resale certificate for items you did not intend to resell you will be on the hook to pay the unpaid sale tax, plus penalties.
If you are an Arkansas retailer and a buyer presents you with a resale certificate, you should do the following:
I hope this post has helped you determine how to use and accept an Arkansas resale certificate. To learn more about TaxJar and get started, visit TaxJar.com/product .
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