Intermedia calculates all taxes due for Federal, State and local taxes on all services and hardware based on the Partners end user prices, and remit the taxes to the various taxing authorities.  If the Partner can provide a valid resale certificate for the state where they are reselling the goods and services, Intermedia will not bill the sales tax due on the hardware or data processing services.  However, this will not apply to any sales tax due on telecommunication services.

What is a resale certificate?

A resale certificate is issued to resellers by the states where the Partner is reselling products and services.  A resale certificate shifts the burden of tax collection from the seller to the purchaser, as sales tax is always due on the end-user’s cost.  Therefore, if Intermedia accepts a valid resale certificate for a state where the Partner is reselling the services we would not bill the sales tax and the Partner would be responsible for the collection and remittance of the sales tax due.  Again, this only applies to sales tax due on hardware or data processing services, this would not apply to sales tax due on telecommunication services.

In order to provide a reseller certificate, you need to send a valid resale certificate for each state in which you do business to taxexemption@intermedia.net. Make sure you note all of your Partner IDs, in case you have more than one.