Using a Virginia resale certificate allows retailers to buy inventory tax-free—helping them avoid double taxation and preserve cash flow. But to use one legally, you need to meet specific eligibility criteria, fill out the right form (ST‑10), and provide accurate documentation to your suppliers. Mistakes—like using an undated form or applying it to non-qualifying purchases—can trigger audits, fines, or even permit revocation.
In this guide, we’ll walk you through everything you need to know: who can use a resale certificate, how to complete it, what risks to avoid, and how to stay audit-ready. As a full-service sales tax compliance support, Hands Off Sales Tax (HOST) also helps businesses generate valid resale certificates across all jurisdictions with confidence.
What Is Virginia Resale Certificate (Form ST‑10) and Who Can Use It
To claim a sales tax exemption for resale purchases in Virginia, you must use Form ST‑10—the state’s official resale certificate recognized by the Virginia Department of Taxation.
Definition and Legal Purpose
Form ST‑10 allows buyers to purchase tangible personal property tax-free if that property is intended for:
- Resale in the regular course of business
- Incorporation into other goods for resale (e.g., raw materials or components)
- Use in packaging that will be resold (e.g., boxes, tape, wrapping)
This form must be provided to each vendor from whom you make qualifying purchases. The seller then keeps the certificate on file to document why sales tax was not collected.
Eligibility to Use ST‑10
To legally issue and use a Virginia resale certificate:
- You must have an active Virginia Sales and Use Tax Certificate of Registration
- You must be purchasing eligible items for resale or packaging—not for personal use or business consumption
Your Virginia sales tax permit number must be entered on the form. Using Form ST‑10 without proper registration or for non-qualifying purchases can result in fines and tax assessments.
Understanding who can use this form—and when—is the foundation of sales tax compliance for Virginia retailers.
How to Get Started: Step-by-Step Instructions
Getting a Virginia resale certificate (Form ST‑10) in place is a quick but important step for any retailer purchasing goods for resale. Here’s how to do it correctly.
Step 1: Download Form ST‑10
- Access the official form from the Virginia Department of Taxation. Make sure you’re using the latest version to ensure compliance.
Step 2: Complete the Form
Fill in the following required fields:
- Purchaser’s business name and address
- Virginia sales tax account number (must be active)
- Description of goods being purchased for resale or packaging
- Vendor’s name and address
- Signature, title, and date
Be precise—vague or incomplete forms may be rejected or expose you to liability.
Step 3: Deliver the Form to Your Supplier
- Email, upload, or hand-deliver the completed ST‑10 to each vendor
- Keep a copy for your own records (recommended for at least 3–5 years)
Quick Completion Checklist
- ☐ Active Virginia sales tax registration
- ☐ ST‑10 form downloaded and fully completed
- ☐ Vendor’s name and resale items clearly described
- ☐ Signed and dated by an authorized individual
- ☐ Delivered to each applicable supplier
Properly completing and submitting this form is essential for claiming exemptions without triggering tax issues later.
Rules for Use & Good-Faith Acceptance
Issuing and accepting a Virginia resale certificate (Form ST‑10) isn’t just a formality—it comes with legal responsibilities. Both buyers and sellers must follow the rules to ensure the exemption is valid and defensible in the event of an audit.
When Can a Seller Accept an ST‑10?
A seller may accept a resale certificate in good faith if:
- The purchaser provides a fully completed ST‑10 form
- The goods being purchased are reasonably intended for resale or qualifying use
- The buyer has a valid Virginia sales tax account number
- The form is signed and dated by an authorized individual
If these criteria are met, the seller is generally protected from liability even if the buyer misuses the certificate.
Avoid These Common Pitfalls
- Undated Forms: Auditors may invalidate ST‑10s that lack a date—even if the rest of the form is accurate. Always ensure the purchaser signs and dates the certificate
- Blank Fields or Vague Descriptions: Incomplete forms could expose the seller to back taxes and penalties
Out-of-State Certificates
Virginia does not accept out-of-state resale certificates. All exempt purchases within Virginia must be documented using Form ST‑10, even if the buyer is based elsewhere.
Ensuring proper use and documentation protects both parties from unnecessary tax exposure.
Certificate Validity & Documentation Best Practices
A Virginia resale certificate (Form ST‑10) doesn’t have a formal expiration date—but that doesn’t mean it lasts forever. Sellers must monitor certificate validity and keep clean records to remain compliant and audit-ready.
How Long Is ST‑10 Valid?
- There is no fixed expiration for a completed ST‑10 form
- However, its validity is tied to the purchaser’s active sales tax permit
- If the buyer’s permit is revoked, canceled, or expires, the certificate becomes invalid—even if the form is still on file
Record Retention & Organization Tips
To stay compliant:
- Keep each certificate on file for at least 3–5 years
- Organize certificates by vendor name and purchase date
- Ensure each certificate is dated, signed, and fully completed
- Periodically verify buyer’s permit status
Consider scanning and digitally storing your ST‑10 forms for easy retrieval during audits.
Failing to produce a valid resale certificate during an audit may result in tax assessments, interest, and penalties—so treating these forms as part of your core compliance documentation is essential.
What Auditors Look For
If your business is audited by the Virginia Department of Taxation, resale certificates will be one of the first things they examine. Missing, incomplete, or improperly executed ST‑10 forms can lead to assessments—even if the transaction was legitimate.
Common Red Flags During an Audit
Auditors typically scrutinize:
- Undated or unsigned ST‑10 forms
- Certificates missing required fields (e.g., tax ID number, item description, purchaser/vendor info)
- Use of certificates for non-qualifying purchases (e.g., office supplies or equipment)
- Buyers with revoked or expired sales tax accounts
If a valid certificate cannot be produced for a tax-exempt sale, the seller is responsible for paying the uncollected sales tax, plus interest and possible penalties.
Rulings on Undated Certificates
In several Virginia Tax Commissioner rulings, undated ST‑10 forms have been deemed invalid, even when all other information was correct. This detail alone has been enough to disqualify resale exemptions and trigger tax liability.
The best defense is proactive organization: ensure every resale certificate is fully completed, signed, and dated, and stored in a format that can be quickly accessed during an audit.
How HOST Helps: ResaleCertify + Full-Service Sales Tax Compliance
Navigating resale certificates across states like Virginia can be complex—but Hands Off Sales Tax (HOST) makes it easier through powerful tools and expert services.
ResaleCertify: Generate Valid Resale Certificates Fast
ResaleCertify is HOST’s streamlined tool that helps retailers and resellers:
- Generate valid resale certificates that meet jurisdiction-specific requirements. Simply sign up with HOST, add your business and registration information, and download dynamically generated resale certificates
- Ensure proper formatting and completeness of key fields like purchaser information, sales tax ID, and product use
- Support certificate generation across all U.S. jurisdictions, including Virginia’s Form ST‑10
HOST: One-Stop Sales Tax Compliance Partner
Beyond resale certificates, HOST offers a full suite of services to help your business stay audit-proof and compliant:
- Sales tax registration in Virginia and all applicable states
- Nexus analysis to determine where you have collection obligations
- Filing and remittance management (monthly, quarterly, or annually)
- Taxability review to determine which of your products or services are taxable
- Audit defense and notice response, including help resolving certificate-related assessments
Whether you’re issuing ST‑10 forms, collecting tax, or preparing for an audit, HOST simplifies the entire process—so you can stay focused on growing your business, not deciphering tax codes.
Conclusion: Get Resale Compliance Right from Day One
Virginia’s resale certificate rules are clear—but the risks of getting them wrong are costly. From using the correct version of Form ST‑10 to ensuring every field is complete, accurate, and dated, proper documentation is essential for both compliance and audit protection. Whether you’re a local retailer or a multi-state reseller, staying organized and proactive isn’t optional—it’s a safeguard against penalties and surprise tax bills. With tools like ResaleCertify and expert support from HOST, you can generate valid resale certificates with confidence and manage your entire sales tax lifecycle with ease. Get in touch with HOST today.
Frequently Asked Questions (FAQs)
1. Do resale certificates in Virginia expire?
No, Virginia’s Form ST‑10 does not have a set expiration date. However, its validity depends on the buyer maintaining an active sales tax permit. If that permit is revoked or canceled, the certificate becomes invalid.
2. Can I use a resale certificate from another state in Virginia?
No. Virginia does not accept out-of-state resale certificates. You must use Form ST‑10, even if the buyer is located in another state.
3. What happens if I use ST‑10 for a non-resale purchase?
Using a resale certificate for personal use or non-qualifying business purchases is considered misuse and can result in tax assessments, penalties, and possible permit suspension.
4. How long should I keep resale certificates on file?
It’s recommended to retain all resale certificates for at least 3 to 5 years. They should be stored in an organized, easily retrievable format in case of audit.
5. Can HOST help with resale certificate compliance in Virginia?
Yes. HOST offers ResaleCertify to help generate valid ST‑10 forms, along with services like nexus analysis, registration, audit defense, and full sales tax filing support.
