Wholesale Jewelry Resale Permits

If you want to establish a relationship with a new wholesale company, it is best to be prepared to provide tax resale information. It is likely that a legitimate jewelry wholesaler will ask you for your sales tax permit or similar documentation in order to authenticate you as a wholesale buyer.

It is in the best interest of bonafide jewelry retailers that jewelry wholesalers qualify them as wholesale buyers in order to provide them with true wholesale prices. If a company does not ask for resale documents, it may be that they are only looking for a quick sale and not a long-term customer or it may be that they are just a retailer offering quantity discounts.

In order for them to not collect sales tax with the sale, it is a wholesaler's obligation to ask a new customer for a resale number and/or a copy of the certificate as a requirement of the State Board of Equalization (BOE). In addition, a jewelry wholesaler may ask you to sign a resale form that states that your purchase is for resale and non-taxable.

If you do not yet have a resale number, you can obtain a number and certificate by contacting your State Board of Equalization (also called Department of Revenue in some states) and applying. A resale license is issued by the state and is required in most states if you are selling merchandise. The process varies from state to state, but it is usually a fairly simple and quick application process.

Both wholesalers and retailers need to have a resale tax number, including individuals (sole proprietors) as well as corporations, partnerships, and limited liability companies. When you receive your resale tax number and certificate, you will also be given documentation explaining your responsibilities as a reseller to keep accurate records, report sales, and pay collected sales tax.

Other commonly requested documentation that validates your business may include a Federal Tax ID Number (obtained from the IRS) or business license. A business license is not the same as a resale license. A business license is a permit to do business and is issued by your local city or county government offices in the area in which you conduct business. To apply for a business license, check in the phone book under city or county offices and look for the agency that issues business licenses.

Wholesale Jewelry Trade Show Credentials

In order to attend a wholesale trade show, you will first be required to register and provide the appropriate credentials. Although requirements can vary from show to show, each venue enacts registration requirements in order to protect you and your business. Some shows will have fairly strict regulations and other events will request only basic documentation. In all events, however, proper business and employee credentials must be approved before badges are issued and/or admittance is allowed.

Many of the major wholesale trade shows allow you to pre-register over the internet, phone, or fax machine. If possible, advance registration is the best option. This way your admittance is secured before you commit to the time and expense associated with travel. Many trade shows will turn you away if you do not have the proper credentials, no matter how far you have traveled.

If you are not able to pre-register, make sure you take the time to find out what credentials are needed to enter the show before you leave home. You can usually find the information you will need to attend a specific trade show on the show's website.

The documentation needed to become a registered buyer at a wholesale trade show may include some (but usually not all) of the following:

Documentation for Proof of Business:

• State Resale Permit
• Business License
• Fictitious Business Registration

Documentation for Proof of Industry Affiliation

• Picture of store front with the name showing
• Wholesale jewelry-related invoices

Documentation for Proof of Ownership or Employment

• Personalized, imprinted business card
• Payroll check, check stub, W-2 form
• Company credit card of insurance card

Personal Identification

• Personal Photo ID, such as a Drivers License or Passport

Membership in the Jewelers Board of Trade

The Jewelers Board of Trade (JBT) is an association specifically geared to the jewelry industry that provides marketing, credit, and collection services to it's members. Membership is not a requirement to buying wholesale, but it is recognized as a valid credential by many jewelry trade shows and wholesale jewelry suppliers. The JBT is sponsored and maintained by jewelry manufacturers, importers, and wholesalers, however, any business in the jewelry industry can be listed with the JBT at no cost. If you are looking to buy wholesale and be a retailer in the jewelry industry, you may find that a JBT listing is beneficial to you.