How to Fill Out New York Resale Certificate ST-120 + FAQs

Specific categories of business owners in New York may be permitted to purchase products or services tax-free if they meet all applicable requirements. One of the documents enabling New York business owners to make tax-free purchases is the Resale Certificate ST-120. It allows eligible businesses to make tax-free purchases of products or services if they are destined for resale in the state.

Learn who needs to use New York Resale Certificate ST-120, what types of products and services are covered, and follow our instructions to fill out an ST-120 accurately.

Do I Need to Fill Out a New York Resale Certificate?

The ST-120 Resale Certificate is one of the many sales tax exemption certificates issued by the New York Department of Taxation and Finance (NYSDTF). An ST-120 enables a purchasing business or entity to buy tangible property or services without paying New York’s sales tax.

Who Can Use an ST-120?

An entity may only use any of the state’s sales tax exemption certificates if it is a business, organization, or group purchasing tangible property or services.

The ST-120 Resale Certificate is specifically designed for purchasing entities intending to resell taxable tangible property or services within the state. According to Page 2 of the Resale Certificate , such purchasers must meet the following criteria:

• If the purchaser is located in New York or registered as an NYS sales tax vendor, they must possess a valid Certificate of Authority . Motor fuel and diesel motor fuel do not count as a valid type of tangible property for the purposes of the ST-120 certificate. Businesses with no physical presence in New York State need a Certificate of Authority if they sell more than 100 tangible property products or more than $300,000 a year of tangible property in the state.
• If the purchaser is registered out-of-state, in D.C., or Canada, or is located in a jurisdiction that doesn’t require registration for sales tax or VAT purposes, they do not need a Certificate of Authority. However, the products or services purchased must be connected to New York. For example, items for resale must either be delivered to the purchaser, customers, or a service provider located in New York.
• The purchaser must not be a construction industry contractor. They must either pay sales tax on construction materials or use different exemption certificates, such as Form ST-120.1 Contractor Exempt Purchase Certificate .

What Happens if I Don’t Fill Out an ST-120?

If you do not fill out an ST-120 Resale Certificate when making a purchase, the seller of the tangible property or services you are purchasing is required to collect sales tax on the transaction. In other words, you must pay sales tax on the purchase even if you were eligible for a tax exemption .

Filling out an ST-120 for purposes other than reselling products within the state may constitute certificate misuse. For example, you may not use an ST-120 and claim a tax exemption on products destined for personal use, as you will owe sales tax on all items you use or consume.

Per Page 2 of the Resale Certificate , certificate misuse exposes you to the following penalties:

• $50 penalty for each misused certificate + 100% of the total taxes due
• Revocation of your Certificate of Authority, if applicable
• A potential criminal felony prosecution punishable by substantial fines and prison sentences

How to Fill Out the New York Resale Certificate ST-120

If your business meets the criteria to use a New York Resale Certificate ST-120, follow these instructions to fill it out correctly.

Step 1: Identification of Seller and Purchaser

• Name of Seller, Address
  • Enter the business name of the selling entity your business is purchasing tangible property or services from.
  • Name of Purchaser, Address
  • • Enter your business name in this field.