Reseller Permit: Your questions answered

How long will it take to have my application processed?

The Department has set a goal to process applications within 10 business days, however it may take up to 60 days to process your application.

Is there any cost or fee to obtain the permit?

No.

Will I get a new reseller permit number each time I renew my permit?

Yes. The last two digits of a permit number represent the year the permit expires, so the number will change.

When selling a business, can the reseller permit be transferred to a new owner? Or does the buyer need to apply for a new reseller permit?

Reseller permits are not transferable. The new owners will need to apply for a reseller permit. They will be responsible for qualifying purchases made with their own permit.

Will business owners need to make copies of their reseller permit and provide one to every place they conduct business?

For all wholesale sales, the seller is required to either keep a copy of your permit or obtain electronic verification from DOR that your permit is valid.

I’m a wholesaler. My retail customer provided a copy of their reseller permit with a different trade name (DBA) listed. How can I verify it’s registered to that business?

When more than one business is listed under a single UBI number, generally, only one trade name is shown. Use the Business Lookup Tool to verify reseller permits.

If a permit is used without authorization (for example, by a former employee), is there a hold-harmless provision for circumstances beyond the permit holder's control?

This type of situation is one that could potentiality result in a waiver of the penalty against the permit holder (The Department may apply current Rule 102(12)(a)(ii) provisions to reseller permits); however, the penalty will be applied to the person actually presenting/using the permit without knowledge of the permit holder.

Is there any situation in which a predecessor’s activity would cause a denial?

Yes, the legislation addresses reorganized businesses and allows the department not to issue to a new business entity (see RCW 82.32.780(4)(c and d).)

If a business gets a permit and doesn't report any qualifying activity will the Department revoke the permit?

The statute allows the Department to revoke the permit if we determine that the taxpayer is no longer entitled to make purchases at wholesale. Each case must be reviewed for all the facts and circumstances specific to that case.

Does the reseller permit replace the Farmers' Certificate for Wholesale Purchases and Sales Tax Exemptions?

No, farmers registered with the Department may apply for and use a reseller permit for qualifying purchases.

How long is a reseller permit valid?

Reseller permits are generally valid for four years. However, permits are valid for only two years if any of the following apply:

• The business is a contractor
• The business has been open for less than 12 months
• The business has not reported gross income in the last 12 months
• The business was on active non-reporting status at the time the application was received
• The business has failed to file tax returns any time during the last 12 months

Expiration notice: If your business’s permit is not automatically renewed, you will receive a notice to apply for a new reseller permit approximately 90 days before your permit expires.