Outline
The Texas Resale Certificate 01 339 form is an essential document for businesses engaged in the resale of taxable items. This form allows purchasers to claim a non-taxable purchase when acquiring goods for resale, rental, or lease. It requires the purchaser's name, address, and Texas Sales and Use Tax Permit Number, which must be an 11-digit number. For out-of-state retailers or those based in Mexico, additional registration numbers are necessary. The form also asks for details about the seller and the specific items being purchased. It is crucial for the purchaser to describe their business activities and the type of items they typically sell. By submitting this certificate to the seller, the purchaser certifies that the items will be resold in their current form or as part of other taxable items. However, if the items are used for purposes other than resale, the purchaser must pay sales tax at that time. Misuse of the certificate can lead to serious legal consequences, including criminal charges. Overall, the Texas Resale Certificate 01 339 is a vital tool for ensuring compliance with state tax laws while facilitating smooth business transactions.
Sample - Texas Resale Certificate 01 339 Form
SAVE A COPY
CLEAR SIDE
Texas Sales and Use Tax Resale Certificate
Name of purchaser, firm or agency as shown on permit
Phone (Area code and number)
Address (Street & number, P.O. Box or Route number)
City, State, ZIP code
Texas Sales and Use Tax Permit Number (must contain 11 digits)
(Retailers based in Mexico must also provide a copy of their Mexico registration form to the seller.)
I, the purchaser named above, claim the right to make a
Seller:
Street address:
City, State, ZIP code:
Description of items to be purchased on the attached order or invoice:
__________________________________________________________________________________________
__________________________________________________________________________________________
__________________________________________________________________________________________
__________________________________________________________________________________________
Description of the type of business activity generally engaged in or type of items normally sold by the purchaser:
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The taxable items described above, or on the attached order or invoice, will be resold, rented or leased by me within the geographical limits of the United States of America, its territories and possessions or within the geographical limits of the United Mexican States, in their present form or attached to other taxable items to be sold.
I understand that if I make any use of the items other than retention, demonstration or display while holding them for sale, lease or rental, I must pay sales tax on the items at the time of use based upon either the purchase price or the fair market rental value for the period of time used.
I understand that it is a criminal offense to give a resale certificate to the seller for taxable items that I know, at the time of purchase, are purchased for use rather than for the purpose of resale, lease or rental, and depending on the amount of tax evaded, the offense may range from a Class C misdemeanor to a felony of the second degree.
Purchaser
Title
Date
This certificate should be furnished to the supplier.
Do not send the completed certificate to the Comptroller of Public Accounts.
Texas Sales and Use Tax Exemption Certification
This certificate does not require a number to be valid.
Name of purchaser, firm or agency
SAVE A COPY
CLEAR SIDE
Address (Street & number, P.O. Box or Route number)
Phone (Area code and number)
City, State, ZIP code
I, the purchaser named above, claim an exemption from payment of sales and use taxes (for the purchase of taxable items described below or on the attached order or invoice) from:
Seller:
Street address: |
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City, State, ZIP code: |
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Description of items to be purchased or on the attached order or invoice:
___________________________________________________________________________________________
___________________________________________________________________________________________
___________________________________________________________________________________________
___________________________________________________________________________________________
___________________________________________________________________________________________
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Purchaser claims this exemption for the following reason:
___________________________________________________________________________________________
___________________________________________________________________________________________
___________________________________________________________________________________________
___________________________________________________________________________________________
___________________________________________________________________________________________
___________________________________________________________________________________________
I understand that I will be liable for payment of all state and local sales or use taxes which may become due for failure to comply with the provisions of the Tax Code and/or all applicable law.
I understand that it is a criminal offense to give an exemption certificate to the seller for taxable items that I know, at the time of purchase, will be used in a manner other than that expressed in this certificate, and depending on the amount of tax evaded, the offense may range from a Class C misdemeanor to a felony of the second degree.
Purchaser
Title
Date
NOTE: This certificate cannot be issued for the purchase, lease, or rental of a motor vehicle.
THIS CERTIFICATE DOES NOT REQUIRE A NUMBER TO BE VALID.
Sales and Use Tax "Exemption Numbers" or "Tax Exempt" Numbers do not exist.
This certificate should be furnished to the supplier.
Do not send the completed certificate to the Comptroller of Public Accounts.
Form Information
| Fact Name | Fact Description |
|---|---|
| Purpose | The Texas Resale Certificate 01-339 is used by purchasers to claim a non-taxable purchase for resale of taxable items. |
| Governing Law | This certificate is governed by the Texas Tax Code, specifically Chapter 151 regarding sales and use tax. |
| Permit Requirement | The purchaser must provide a valid Texas Sales and Use Tax Permit Number, which contains 11 digits. |
| Out-of-State Retailers | Out-of-state retailers must provide their registration number or RFC number if based in Mexico, along with a copy of their Mexico registration form. |
| Seller Information | Details about the seller, including name and address, must be included on the form. |
| Item Description | The form requires a description of the items being purchased, either on the form itself or attached as an order or invoice. |
| Business Activity | Purchasers must describe their general business activity or the types of items they normally sell. |
| Geographical Limits | The items purchased must be resold, rented, or leased within the U.S. or Mexico. |
| Tax Liability | If items are used for purposes other than resale, the purchaser is liable for sales tax based on the purchase price or fair market rental value. |
| Criminal Offense | Providing a resale certificate for items known to be for personal use is a criminal offense, potentially resulting in severe penalties. |
Detailed Guide for Filling Out Texas Resale Certificate 01 339
Completing the Texas Resale Certificate 01-339 form is essential for making non-taxable purchases for resale. This form must be filled out accurately to ensure compliance with Texas tax regulations. Below are the steps to guide you through the process of filling out the form correctly.
- Begin by entering the name of the purchaser, firm, or agency as it appears on your sales tax permit.
- Provide the phone number with the area code.
- Fill in the address, including street number, P.O. Box, or route number.
- Complete the city, state, and ZIP code fields.
- Input your Texas Sales and Use Tax Permit Number, ensuring it contains 11 digits.
- If applicable, include the out-of-state retailer's registration number or Federal Taxpayers Registry (RFC) number for retailers based in Mexico. Remember to attach a copy of the Mexico registration form.
- In the designated area, state the seller’s name and their street address, followed by the city, state, and ZIP code.
- Describe the items to be purchased as indicated on the attached order or invoice. Use clear and specific language.
- Outline the type of business activity you engage in or the type of items you normally sell.
- Confirm that the taxable items will be resold, rented, or leased within the specified geographical limits.
- Read the statement regarding the liability for sales tax if items are used for purposes other than resale.
- Sign the form as the purchaser and include your title and date of signing.
- Ensure the completed certificate is given to the supplier. Do not send it to the Comptroller of Public Accounts.
Obtain Answers on Texas Resale Certificate 01 339
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What is the Texas Resale Certificate 01-339?
The Texas Resale Certificate 01-339 is a form that allows businesses to purchase items tax-free if they intend to resell them. This certificate is essential for retailers who need to avoid paying sales tax on inventory that will be sold to customers.
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Who can use the Texas Resale Certificate?
Any business or individual with a valid Texas Sales and Use Tax Permit can use this certificate. This includes retailers, wholesalers, and service providers who buy taxable items for resale. Additionally, out-of-state retailers and those based in Mexico can also use this form, but they must provide their registration numbers and relevant documentation.
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How do I fill out the Texas Resale Certificate?
To complete the certificate, provide the following information:
- Your name or business name
- Your contact information, including phone number and address
- Your Texas Sales and Use Tax Permit Number
- The seller's name and address
- A description of the items you are purchasing for resale
- A brief description of your business activities
Ensure all information is accurate to avoid any issues with the tax authorities.
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Where do I submit the Texas Resale Certificate?
You should provide the completed certificate directly to the seller from whom you are purchasing the items. Do not send it to the Texas Comptroller of Public Accounts.
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What happens if I misuse the Texas Resale Certificate?
Misusing the certificate, such as using it for items that are not intended for resale, can lead to serious consequences. This includes potential criminal charges ranging from a Class C misdemeanor to a felony, depending on the amount of tax evaded. Always use the certificate correctly to avoid legal issues.
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Can I use the Texas Resale Certificate for all purchases?
No, the certificate is only valid for items intended for resale, rental, or lease. It cannot be used for personal purchases or for items that will not be resold. Additionally, it cannot be issued for the purchase, lease, or rental of motor vehicles.
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Is there an expiration date for the Texas Resale Certificate?
The Texas Resale Certificate does not have an expiration date. However, it is important to ensure that your Texas Sales and Use Tax Permit remains active and valid to use the certificate effectively.
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What should I do if I make a mistake on the certificate?
If you make a mistake while filling out the Texas Resale Certificate, it is best to complete a new form with the correct information. This helps ensure clarity and prevents any misunderstandings with the seller or tax authorities.
Common mistakes
Filling out the Texas Resale Certificate 01-339 form can be straightforward, but many people make common mistakes that can lead to issues down the line. One frequent error is failing to provide the correct Texas Sales and Use Tax Permit Number. This number must contain 11 digits. If it is incorrect or missing, the certificate may not be accepted, which can complicate the resale process.
Another mistake is neglecting to include the full name of the purchaser, firm, or agency as it appears on the permit. This information is crucial for identification purposes. If the name does not match the records, it could raise red flags during an audit or when trying to make a purchase.
Many individuals also forget to specify the description of the items being purchased. This section should clearly outline what is being bought for resale. Vague descriptions can lead to confusion and may result in the seller refusing to accept the certificate.
Some people overlook the importance of detailing the type of business activity they engage in. This description helps the seller understand the context of the purchase. Without this information, the seller may be hesitant to accept the resale certificate, fearing it could be misused.
Another common error is not signing or dating the certificate. The purchaser's signature and date affirm the validity of the document. A missing signature can render the certificate invalid, leading to potential tax liabilities.
Additionally, some individuals mistakenly believe they can submit the completed form to the Comptroller of Public Accounts. This is incorrect. The certificate should only be given to the supplier, not sent to any government office.
Lastly, people often fail to understand the legal implications of misusing the resale certificate. It is a serious offense to use the certificate for items that will not be resold. Those who make this mistake could face significant penalties. Awareness of these mistakes can help ensure a smoother transaction process and compliance with tax regulations.
Documents used along the form
The Texas Resale Certificate 01 339 form is an important document for businesses making non-taxable purchases for resale. Alongside this certificate, several other forms and documents may be used to ensure compliance with state tax regulations. Here are five commonly associated forms that can help clarify tax obligations and exemptions.
- Texas Sales and Use Tax Exemption Certification: This document allows a purchaser to claim an exemption from sales and use taxes for specific purchases. It must include the reason for the exemption and should be presented to the seller, similar to the resale certificate.
- Texas Sales and Use Tax Permit Application: Businesses must complete this application to obtain a sales tax permit before they can collect sales tax from customers. The permit number is essential for various transactions, including issuing resale certificates.
- Purchase Order: A purchase order is a document issued by a buyer to a seller, indicating the items to be purchased, their quantities, and agreed prices. It serves as a formal agreement and often accompanies the resale certificate to detail the transaction.
- Invoice: An invoice is a bill provided by the seller to the buyer, detailing the products or services rendered. It includes information such as the total cost, payment terms, and applicable taxes. This document can be referenced alongside the resale certificate for clarity on the transaction.
- Sales Tax Return: Businesses must file this return periodically to report the sales tax they have collected from customers. It provides a summary of sales and taxes owed to the state, ensuring compliance with tax regulations.
Utilizing these forms in conjunction with the Texas Resale Certificate helps businesses maintain proper tax practices and avoid potential legal issues. Each document plays a crucial role in ensuring that transactions are conducted in accordance with Texas tax laws.
Similar forms
The Texas Resale Certificate 01 339 form is similar to several other documents used for tax purposes. Below are ten documents that share similarities with the Texas Resale Certificate:
- California Resale Certificate: This document allows purchasers in California to buy goods without paying sales tax, similar to the Texas Resale Certificate, which also facilitates tax-exempt purchases for resale.
- New York Resale Certificate: In New York, this certificate enables businesses to purchase items intended for resale without incurring sales tax, mirroring the function of the Texas form.
- Florida Resale Certificate: This certificate serves the same purpose in Florida, allowing for tax-free purchases for resale, akin to the Texas Resale Certificate.
- Illinois Resale Certificate: Illinois offers a resale certificate that exempts purchases from sales tax for resale, paralleling the Texas document's intent and use.
- New Jersey Resale Certificate: In New Jersey, this form is used to make tax-exempt purchases for resale, similar to the Texas Resale Certificate.
- Virginia Resale Certificate: This document in Virginia allows businesses to purchase goods without paying sales tax for resale purposes, just like the Texas Resale Certificate.
- Pennsylvania Exemption Certificate: This certificate is used in Pennsylvania to claim exemption from sales tax for items purchased for resale, aligning with the Texas form's purpose.
- Ohio Resale Certificate: In Ohio, this certificate allows for tax-exempt purchases for resale, reflecting the same intent as the Texas Resale Certificate.
- Massachusetts Resale Certificate: This document allows Massachusetts businesses to purchase items without paying sales tax for resale, similar to the Texas form.
- Washington Resale Certificate: In Washington, this certificate facilitates tax-free purchases for resale, just as the Texas Resale Certificate does.
Dos and Don'ts
When filling out the Texas Resale Certificate 01 339 form, it’s essential to follow specific guidelines to ensure accuracy and compliance. Here are seven things to do and avoid:
- Do provide the correct name of the purchaser, firm, or agency as shown on the permit.
- Do include a valid Texas Sales and Use Tax Permit Number, ensuring it contains 11 digits.
- Do clearly describe the items to be purchased on the attached order or invoice.
- Do indicate the type of business activity or items normally sold by the purchaser.
- Don't forget to include your phone number and address accurately.
- Don't use the certificate for personal purchases or items not intended for resale.
- Don't send the completed certificate to the Comptroller of Public Accounts; provide it directly to the supplier.
By adhering to these guidelines, you can ensure a smooth process when using the Texas Resale Certificate.
Misconceptions
Understanding the Texas Resale Certificate 01 339 form is crucial for businesses looking to make tax-exempt purchases for resale. However, several misconceptions can lead to confusion. Here’s a breakdown of seven common misunderstandings regarding this form:
- The form is only for Texas businesses. Many believe that only Texas businesses can use this certificate. In reality, out-of-state retailers can also utilize it, provided they have the necessary registration numbers.
- A resale certificate guarantees tax exemption on all purchases. This form only applies to items intended for resale. If the items are used for personal use or not resold, tax must be paid.
- You need a special number for the certificate to be valid. Some think that a specific exemption number is required. In fact, this certificate does not require a number to be valid.
- All purchases made with the certificate are tax-free. It's a misconception that all purchases are exempt from sales tax. The certificate only covers items that will be resold, rented, or leased.
- The seller must keep a copy of the certificate. While it is important for the seller to have the certificate, it is the purchaser's responsibility to provide it. Sellers do not need to send it to the state.
- Filing the certificate with the state is necessary. Many believe they must submit the completed form to the Texas Comptroller. However, the form should only be given to the seller and not filed with the state.
- Using the certificate is a straightforward process. While it may seem simple, misuse of the certificate can lead to serious legal consequences. It's essential to understand the terms and conditions before using it.
By clarifying these misconceptions, businesses can better navigate the use of the Texas Resale Certificate 01 339 form and ensure compliance with tax regulations.
Key takeaways
When filling out and using the Texas Resale Certificate 01 339 form, consider the following key takeaways:
- Accurate Information is Essential: Ensure that all fields, including the purchaser's name, address, and Texas Sales and Use Tax Permit Number, are filled out correctly. Incomplete or incorrect information may lead to issues with the resale process.
- Purpose of the Certificate: The form is used to claim a non-taxable purchase for items intended for resale, rental, or lease. It is crucial that the items listed are indeed for resale to avoid legal repercussions.
- Legal Implications: Misusing the resale certificate can result in serious legal consequences. If items are purchased for personal use instead of resale, the purchaser may face penalties ranging from misdemeanors to felonies.
- Do Not Submit to the Comptroller: The completed form should be provided directly to the seller, not submitted to the Comptroller of Public Accounts. Retain a copy for your records.