An alternative document (also called out-of-state resale certificate) is a document submitted by an out-of-state seller who sells and delivers their products and services to a state where they do not have nexus.
How does it work?
When you submit a resale certificate for a particular state, that resale certificate can also be valid as an alternative document in some other states. Just like a resale certificate, an alternative document makes you exempt from sales tax in those states.
Do all states accept alternative documents from out-of-state sellers?
No, some states do not accept alternative documents from out-of-state sellers (eg. California). The list of such states is subject to change, so we recommend turning to a tax expert to make sure you’re up-to-date on your tax information.
Who is considered an out-of-state seller?
An out-of-state seller is a remote seller who has no physical presence in a particular state but has to follow economic nexus regulation.
Are there limits for alternative documents?
Yes, there are. Each alternative document has an economic nexus threshold for that state. Once the threshold is surpassed, out-of-state businesses required to obtain a sales tax permit and collect and remit sales tax according to state and local laws. You can check the transaction thresholds and expiry dates of your alternative documents in Printful Dashboard > Billing > Resale certificates.
Types of documents can be submitted as a resale certificate and in some states be valid as an alternative document:
- Home State Certificates
- SSUTA Multi-state Certificate with Home State Numbers
- MTC Uniform Multijurisdictional Resale Certificate with Home State Numbers
- Home State Sales Tax Permits
