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Our customer the reseller has provided a NY resale certificate. We are doing drop ships for them in various states. Is their NY certificate valid for multiple states?

Full Question: Our customer the reseller has provided a NY resale certificate. We are doing drop ships for them into the above states. Is there NY resale certificate valid acceptable in those states (California, DC, Florida, Mass, Ohio, PA and Tx) or is there additional documentation we need to collect

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Answer:

Diane Yetter photoThe determination of what is acceptable documentation in a drop shipment situation varies based on the state and in some cases other criteria such as where the inventory ships from and how it is delivered. Unfortunately in the states you have listed, most do not accept alternative documentation. California, DC, and Massachusetts all require a registration number in their state in order for a resale certificate to be valid. Florida the rules depend on other factors such as where the inventory ships from (in or out of FL) and how it is delivered (common carrier or own truck). Pennsylvania doesn't require a registration number but does require a PA certificate with a no nexus statement. Only OH and TX would accept the NY certificate you have received as a valid resale certificate. For more information about drop shipment rules in a book we wrote and published by CCH, please visit Drop Shipments: Taxation, Compliance and Planning. If you need further assistance with this matter, please feel free to contact us directly.

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