Resale certificates by state
Kentucky resale certificate
The official form, whether Kentucky takes the multistate certificates, and what buyers and sellers need to do to keep a resale purchase tax-free.
Official sources checked
Quick answer
- Official form
- Resale Certificate (51A105) · Get the form (opens in a new tab)
- Issued by the Kentucky Department of Revenue.
- Expires?
- No set expiry
- A blanket certificate covers later purchases as long as the buyer's operation doesn't change in character and the purchases are of the kind it usually buys for resale (103 KAR 31:111 Section 1). A single-purchase certificate covers one purchase only.
- Accepts the SST certificate?
- Yes
- Streamlined Sales Tax full member state.
- Accepts the MTC certificate?
- Yes
- Out-of-state buyers can use it?
- Yes
- A nonresident purchaser not required to register in Kentucky may issue a fully completed 51A105 (or Form 51A260). It must note on the certificate that it is a nonresident not required to hold a Kentucky permit (103 KAR 31:111 Section 3). DOR's FAQ says to include the buyer's home-state retail number.
- Buyer must be registered in Kentucky?
- With limits
- Kentucky buyers must hold a valid Kentucky sales and use tax permit. Nonresident purchasers not required to register are exempt from this, as described above.
How to fill out and accept the certificate
- Check Blanket or Single Purchase.
- Enter the buyer's business name, address and Kentucky sales and use tax permit account number, and describe what the business sells, leases, or manufactures. A nonresident notes it is not required to hold a Kentucky permit.
- Enter the seller's name and address and describe the products or services being purchased for resale.
- Have an owner, partner or corporate officer sign it with title and date, under penalty of perjury.
When a seller is protected
KRS 139.270: the seller is relieved of the burden of proof if it obtains a fully completed resale certificate (or captures the equivalent data) within 90 days after the sale and keeps it on file. If the Department later asks for substantiation, the seller is relieved if, within 120 days of the request, it obtains a completed certificate for an exemption that existed at the time, could apply to the item, and is reasonable for the buyer's business, or other proof the sale was not taxable. No relief for fraud, soliciting improper exemption claims, or knowingly accepting materially false information.
Seller record-keeping
Four years (KRS 139.720, per DOR's Sales and Use Tax FAQ).
Common mistakes
- Accepting a certificate from a contractor or other buyer registered under a 900,000-series consumer number; the form warns the seller will be liable for the tax.
- Using 51A105 for accommodations, sewer services or admissions, which the form excludes.
- Obtaining the certificate after the 90-day window (or after 120 days from a Department request) for items the buyer would use rather than resell; the burden of proof is then not met.
Multistate certificates in Kentucky
SST Certificate of Exemption
Yes
Kentucky is a Streamlined Sales Tax full member state, so sellers can accept the SST Certificate of Exemption for resale. Foreign buyers can enter a foreign ID, such as a VAT number.
MTC Uniform Resale Certificate
Yes
MTC note: Resale use only (KRS 139.270), not for admissions; functions as a blanket certificate under 103 KAR 31:111.
Kentucky resale certificate FAQ
What form is used for a resale certificate in Kentucky?
Kentucky's resale certificate is the Resale Certificate (51A105), published by the Kentucky Department of Revenue. Download it from the Kentucky Department of Revenue website; sellers keep the completed certificate rather than sending it to the state.
Does Kentucky accept multistate resale certificates?
Kentucky is a Streamlined Sales Tax full member state, so sellers can accept the SST Certificate of Exemption for resale. Foreign buyers can enter a foreign ID, such as a VAT number. Kentucky is on the Multistate Tax Commission's list of states that accept its Uniform Sales & Use Tax Resale Certificate. MTC note: Resale use only (KRS 139.270), not for admissions; functions as a blanket certificate under 103 KAR 31:111.
Do Kentucky resale certificates expire?
A blanket certificate covers later purchases as long as the buyer's operation doesn't change in character and the purchases are of the kind it usually buys for resale (103 KAR 31:111 Section 1). A single-purchase certificate covers one purchase only.
Can an out-of-state business use a resale certificate in Kentucky?
A nonresident purchaser not required to register in Kentucky may issue a fully completed 51A105 (or Form 51A260). It must note on the certificate that it is a nonresident not required to hold a Kentucky permit (103 KAR 31:111 Section 3). DOR's FAQ says to include the buyer's home-state retail number.
Related reading
- Kentucky sales tax guide: rates, nexus thresholds and filing rules
- Kentucky sales tax exemptions
- Resale certificates: who qualifies and how to get one
- How out-of-state resale certificates work
- Sales tax exemption guide
Sources
- Kentucky Form 51A105 Resale Certificate (PDF) (opens in a new tab)
- 103 KAR 31:111 Sales and purchases for resale (opens in a new tab)
- KRS 139.270 (opens in a new tab)
- Kentucky DOR Sales and Use Tax FAQ (PDF) (opens in a new tab)
- MTC Uniform Sales & Use Tax Resale Certificate (rev. 10/14/2022) (opens in a new tab)
- SST member state list (opens in a new tab)
- SST Certificate of Exemption (F0003) (opens in a new tab)
- SST Exemptions page (opens in a new tab)
This page is general information, not tax or legal advice. Forms and rules change, so confirm with the Kentucky Department of Revenue before you rely on a certificate.
Resale certificates in other states
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