When a person other than the warrantor makes a repair for the warrantor, the person making the repair is making a wholesale sale of the repair service to the warrantor and should take a resale certificate from the warrantor to document the wholesale nature of the transaction. The person doing the repair is taxable under the wholesaling classification of the B&O tax. This tax treatment applies beginning July 1, 2005, even though the extended warranty may have been sold before that date.
Note: Effective January 1, 2010, the resale certificate will be replaced with a reseller permit issued by the Department of Revenue. For more information, visit our Reseller Permit page.