Can a Connecticut business use a resale certificate to purchase goods and services for use by the business?
No. A business can only use a resale certificate to purchase goods or services that are intended for resale in the regular course of business. Goods and services that are used in carrying on a business are consumed by the business and the tax must be reported and paid on them. 12. When may the use of a resale certificate result in a use tax liability for the business later? Use of a resale certificate leads to a use tax liability later if: • A business purchases inventory for resale and subsequently consumes or uses it in the business. For example, a computer distributor may take a computer from inventory to do billing for the business. The business owes use tax on the price it paid for the computer. • A business takes items purchased for resale and subsequently gives them away in a promotion. For example, a distributor of office supplies may send out pens and pencils as part of its advertising. The business owes use tax on the price it paid for the pens and pencils. Note: Any tangible
