Texas sales use tax resale certificate
When would somebody need a resale certificate? Very simple – when you are a reseller of goods not at retail. For example, a reseller of raw materials will apply for a resale certificate when they sell a taxable item to a customer and you do not intend to collect sales tax because it will be resold. The resale certificate is proof that the taxable item was purchased for resale.
You can use a resale certificate to purchase the following items tax-free:
Merchandise or a taxable service that you intend to resell in the form or condition in which you acquired it from your vendor or that you intend to resell as an integral part of other merchandise or taxable service;
Tangible personal property that you buy to lease or rent to your customer
a taxable service performed on tangible personal property in your resale inventory; and
Tangible personal property that you buy to use in performing a taxable service when you transfer the care, custody and control of the tangible personal property to your customer.
