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Reseller Permit in NetSuite

Written by Stephanie Kim | Feb 18, 2025 5:00:00 PM

In NetSuite, managing reseller permits is an important in handling tax exemptions for customers who purchase items for resale. This functionality ensures that you can easily track and validate tax-exempt transactions, comply with tax regulations, and maintain proper documentation for audits.

  1. What is a Reseller Permit?

A reseller permit (or resale certificate) is a document that allows businesses to purchase goods tax-free when they intend to resell those goods. For instance, if you’re selling to a retailer who will resell your products, they can provide you with a reseller permit to exempt the transaction from sales tax.

  1. How to Enable Reseller Permit Functionality in NetSuite

NetSuite allows you to manage reseller permits through its customer records and tax settings.

Step 1: Enable the Tax Feature

  • Navigate to Setup > Company > Enable Features.
  • Under the Tax subtab, ensure that Advanced Taxes and US Sales Tax features are enabled.

Step 2: Configure the Customer Record

  • Go to Lists > Relationships > Customers.
  • Edit the customer record and navigate to the Financial subtab.
  • Enter the reseller permit number in the Resale Number field.
  • Set the Tax Item to an exempt status (e.g., “Resale Exempt”).
  1. Applying Reseller Permits to Transactions

Once a reseller permit is recorded for a customer, it can be applied automatically to sales transactions:

  • When creating a Sales Order or Invoice, NetSuite will use the tax exemption status based on the customer's reseller permit information.
  • The system will not apply sales tax to transactions marked with a valid resale number.
  1. Best Practices for Managing Reseller Permits
  2. Regularly Update Reseller Permits
    Reseller permits often have expiration dates. Manage the expiration dates and request updated permits from customers as needed.
  3. Maintain Accurate Records
    For audit purposes, makes sure to keep copies of reseller permits either as attachments in NetSuite or in an external document management system.
  4. Verify Validity of Resale Numbers
    Check the validity of resale numbers with relevant state agencies to avoid complications during tax audits.

 

The reseller permit functionality in NetSuite helps streamline the sales tax exemption process, making it easier for businesses to handle tax-exempt sales efficiently. By properly setting up and managing reseller permits, you can ensure compliance with tax regulations and simplify your accounting processes.

 

 

 


 

 

 


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