The Complete Guide to Resale Certificates
Sales tax in the United States is meant to be paid once, by the final customer. A resale certificate — also called a reseller's permit, resale license, sales tax exemption certificate or wholesale license depending on the state — is how a business proves to its supplier that a purchase is for resale, so tax is not charged twice along the supply chain.
What Is a Resale Certificate?
A resale certificate is a signed document a buyer gives to a seller stating that the goods being purchased will be resold. It normally includes the buyer's business name and address, sales tax permit number, a description of the goods, the reason for the exemption and a signature. The seller keeps it on file as proof for a sales tax audit.
The certificate does not remove tax altogether — it moves the obligation. When you sell the item to a final customer in a taxable state, you collect the sales tax and pay it to the state.
Resale Certificate vs Sales Tax Permit
These two are often confused. A sales tax permit (or seller's permit) is the registration the state issues so you can collect sales tax. A resale certificate is the form you hand to suppliers. In nearly every state you need the permit — and its number — before you can complete a valid resale certificate. If you only buy for resale in a state where you have no permit, many states let you use your home-state permit number on a multistate form.
Resale Certificate Forms by State
Each state sets its own form. Some of the most common:
| State | Form |
|---|---|
| Texas | Form 01-339, Texas Sales and Use Tax Resale Certificate |
| California | CDTFA-230, General Resale Certificate (optional — any document with the required details is accepted) |
| Florida | Form DR-13, Florida Annual Resale Certificate for Sales Tax |
| New York | Form ST-120, Resale Certificate |
| Ohio | STEC B (blanket) or STEC U (single purchase) exemption certificate |
| Georgia | Form ST-5, Sales Tax Certificate of Exemption |
| Illinois | Form CRT-61, Certificate of Resale |
| Pennsylvania | REV-1220, Pennsylvania Exemption Certificate |
Forms change from time to time, so always download the current version from the state's tax department website.
Multistate Resale Certificates
If you buy from suppliers in many states, two multistate forms can save time:
- Streamlined Sales and Use Tax Certificate of Exemption (Form F0003) — accepted by the states that belong to the Streamlined Sales Tax agreement.
- Multistate Tax Commission (MTC) Uniform Sales & Use Tax Resale Certificate — accepted, sometimes with conditions, by a group of states that includes Arizona, Colorado, Connecticut, Hawaii, Kentucky, Michigan, Nebraska, North Dakota, Oklahoma, South Carolina, Tennessee and Utah.
Each state decides which forms it accepts and under what conditions, so check the notes for every state on the form before relying on it.
States Without a Sales Tax
Alaska, Delaware, Montana, New Hampshire and Oregon have no statewide sales tax, so a statewide resale certificate is generally not needed there. Alaska allows local sales taxes, and some of its towns and boroughs have their own exemption process.
How to Use Your Certificate Correctly
- Use it only for items you genuinely plan to resell (or that become part of a product you sell). Office supplies, equipment and items for your own use are taxable.
- Give each supplier a completed certificate before or at the time of purchase.
- Renew it when required — Florida's certificate, for example, is issued annually.
- Keep copies and records; misuse can lead to back taxes, penalties and interest.
- File your sales tax returns on time, even in periods with no sales, if your state requires it.
Resale Certificates for Amazon and Online Sellers
Most US wholesalers and brands ask online sellers for a resale certificate before opening an account. Amazon also has a Tax Exemption Program that lets sellers buy inventory for resale on Amazon Business without paying sales tax. Because Amazon and other marketplace facilitators collect and remit sales tax on your marketplace sales in most states, your main reason for a certificate is usually buying inventory tax-free from suppliers.
Selling from outside the US? Start with a US LLC for non-residents and an EIN; most states let you register for a sales tax permit with an EIN.
How Incofile Can Help
We can form your company, get your EIN and register for the sales tax permits you need, then prepare the resale certificate forms for your suppliers. Not sure where you have to register? Our business license research service tells you every license and permit your business needs. Read more in our guides to business licenses.
Frequently Asked Questions
Is a resale certificate the same as a seller's permit?
No. A seller's permit (sales tax permit) is the state registration that lets you collect sales tax. A resale certificate is the form you give suppliers so they do not charge you tax on items you will resell. In most states you need the permit number to complete the certificate.
How much does a resale certificate cost?
The certificate form itself is usually free. Most states issue the underlying sales tax permit free or for a small fee; a few charge more or require a security deposit.
Can I use a resale certificate in another state?
Often, yes. Many states accept out-of-state permit numbers or a multistate form such as the Streamlined (F0003) or MTC uniform certificate, but each state sets its own rules and some do not accept them.
Do resale certificates expire?
It depends on the state. Some certificates are valid as long as you keep buying from the same supplier, while others, such as Florida's annual resale certificate, must be renewed regularly.
Can I buy anything tax-free with a resale certificate?
No. Only items you will resell, or that become part of a product you sell, qualify. Using the certificate for personal items or business supplies can lead to tax, penalties and interest.
Do I need an LLC to get a resale certificate?
Not always — sole proprietors can register too — but an LLC with its own EIN keeps business purchases separate and is what most wholesalers expect.
Can a non-US seller get a resale certificate?
Usually, through a US company. Once your LLC has an EIN, you can register for a sales tax permit in the states where you need one and complete the resale forms.