How to get a resale certificate for your business

If your business buys goods with the intention of reselling them to customers, you should not be paying sales tax on those purchases. Sales tax is designed to be collected once, at the point of final sale to the end consumer. A resale certificate is the document that communicates to your supplier that you are buying for resale and that the transaction is therefore exempt from sales tax at the wholesale level.

Without a resale certificate on file, many suppliers will charge sales tax on wholesale purchases, because the default assumption is that every buyer is an end consumer. Over the course of a year, that unnecessary tax can add a meaningful amount to cost of goods.

What a resale certificate actually is

A resale certificate, sometimes called a resale exemption certificate or a sales tax exemption certificate, is a document you provide to a supplier at the time of purchase to certify that you are purchasing goods for the purpose of resale rather than for personal or business use. The certificate shifts the sales tax collection obligation from the transaction between you and your supplier to the later transaction between you and your customer.

The certificate typically contains your business name, address, state sales tax permit number, and a description of the goods being purchased or the nature of your business. The supplier keeps the certificate on file as documentation that they were not required to collect sales tax on that transaction.

It is important to understand what a resale certificate does not do. It does not exempt a business from sales tax in general. If you purchase items for your own use, for employee use, or for any purpose other than resale, those purchases are not covered by the certificate and sales tax applies normally. Using a resale certificate to purchase goods for personal or business use rather than resale is misuse of the certificate and can result in tax liability, interest, and penalties.

Who needs one

Any business that purchases goods for resale and operates in a state with a sales tax system needs a resale certificate to avoid paying sales tax on those purchases. This includes retailers, wholesalers, e-commerce businesses, distributors, manufacturers who buy components they incorporate into finished goods for sale, and service businesses that sell physical products alongside their services.

The certificate is relevant only in states that have a sales tax. Five states have no general state-level sales tax: Alaska, Delaware, Montana, New Hampshire, and Oregon. Businesses operating exclusively in those states do not need a resale certificate for state purposes, though Alaska has local-level sales taxes in some jurisdictions and those may have their own requirements.

The resale certificate applies most commonly to goods purchased for resale. Whether services qualify for resale exemption depends on the state and the nature of the service. Some states, including Maryland and Tennessee, allow resale treatment for specified taxable services. A categorical rule excluding all services does not hold across every state, so businesses that purchase taxable services for resale should confirm the applicable rules in each jurisdiction.

How to get a resale certificate

The process for obtaining a resale certificate varies by state, but it follows a broadly similar structure.

Step 1: Register for a sales tax permit in your state

Most states require a business to register for a sales tax permit, also called a seller's permit or sales tax registration, before it can use or issue a valid resale certificate. The permit indicates that the business is registered to collect sales tax from its own customers and that it has a legitimate basis for claiming resale exemption on its purchases.

Registration is typically done through the state's Department of Revenue or Department of Taxation website. Many states allow online registration at no cost or for a nominal fee. Some states issue a resale certificate directly when the business completes its sales tax registration; others require the business to complete a separate exemption form.

Step 2: Complete the resale certificate form for your state

There is no single universal resale certificate accepted by all states. However, two widely accepted multi-state certificates exist.

The Streamlined Sales Tax (SST) Certificate of Exemption is accepted by the 24 states participating in the Streamlined Sales and Use Tax Agreement: Arkansas, Georgia, Indiana, Iowa, Kansas, Kentucky, Michigan, Minnesota, Nebraska, Nevada, New Jersey, North Carolina, North Dakota, Ohio, Oklahoma, Rhode Island, South Dakota, Tennessee, Utah, Vermont, Washington, West Virginia, Wisconsin, and Wyoming. Alabama is an advisory state, not a full SST member, and is not on this list.

The Multistate Tax Commission (MTC) Uniform Sales and Use Tax Resale Certificate is accepted by many states for resale purchases, though each state may have its own rules about whether it accepts the MTC certificate as a full substitute for a state-specific form.

When purchasing from a supplier in a state where you are not registered, the supplier's state controls which certificate is accepted. If neither the SST nor the MTC certificate is accepted in the supplier's state, you will need to use that state's specific form.

For businesses purchasing exclusively within their own state, the state-specific resale certificate or registration number is typically all that is needed.

Step 3: Provide the certificate to your suppliers

When placing an order with a supplier for goods you intend to resell, provide the completed and signed resale certificate at or before the time of purchase. Many suppliers maintain a certificate on file and apply the exemption automatically to subsequent orders, but confirm this with each supplier rather than assuming.

Keep a copy of every certificate you issue for your own records.

State-by-state overview of what each state requires

The table below provides a general summary. Because state requirements change and vary by business type, always verify the current requirement with the state's Department of Revenue before relying on a certificate.

How long a resale certificate is valid

Most resale certificates do not expire and remain valid until revoked or until the business's registration is cancelled. However, some states impose expiration periods.

States where resale certificates expire or require periodic renewal include Florida (annual renewal with each active sales tax registration), Colorado (three years for blanket exemptions), New Mexico (three years in some cases), and Illinois and Washington for certain exemption categories. In states with expiration dates, suppliers are entitled to request an updated certificate when the existing one expires.

Washington reseller permits normally expire after four years, or after two years in certain circumstances, and must be renewed before the expiration date to maintain valid resale exemption status on purchases from Washington suppliers.

If you stop operating the business or are no longer making purchases for resale, notify your supplier that the certificate is no longer valid rather than leaving an active certificate on file with no intention to use it correctly.

Common mistakes to avoid

Using one state's certificate in another state: A Texas resale certificate does not automatically work for purchases from a California supplier. Each state controls which certificates it accepts. Check with the supplier or the supplier's state revenue agency before assuming a certificate transfers.

Purchasing non-resale items under the exemption: If you buy office supplies, equipment, or items for internal use under a resale certificate, you owe the sales tax on those items. Incorrect use of the certificate is a common audit finding and results in back tax plus interest.

Not renewing certificates that expire: In states where certificates have expiration dates, presenting an expired certificate to a supplier does not create a valid exemption. The supplier is entitled to charge tax on purchases made under an expired certificate.

Not keeping records of issued certificates: Both the buyer and the seller need to retain resale certificates. Sellers who cannot produce a valid certificate received in good faith lose the protection that the certificate provides during an audit.

How Inkle helps

Inkle's tax team advises businesses on sales tax registration requirements and helps confirm whether purchases qualify for resale exemption in the states where the business operates. For businesses managing multi-state sales tax obligations alongside their income tax compliance, Inkle integrates both sets of obligations into a single compliance picture.

Learn more about Inkle's tax services.

Frequently asked questions

How do I get a resale certificate? 

In most states, the process starts by registering for a sales tax permit (also called a seller's permit) with the state's Department of Revenue. Many states issue a certificate number or resale documentation as part of that registration. In states that do not issue a separate certificate, you complete a standard exemption form and provide it to your suppliers. Some states accept multi-state certificates like the SST Certificate of Exemption or the MTC Uniform Sales and Use Tax Resale Certificate.

Can I use the same resale certificate in every state? 

No. There is no single certificate accepted by all US states. The Streamlined Sales Tax Certificate of Exemption is accepted by the 24 SST-member states, and the MTC Uniform Sales and Use Tax Resale Certificate is accepted by many others. For states outside both programs, the state's own certificate form is required.

Do I need a resale certificate if my business is in a state with no sales tax? 

Not at the state level. Alaska, Delaware, Montana, New Hampshire, and Oregon have no general state-level sales tax and do not require a resale certificate for state purposes. However, if you purchase from suppliers in other states that do have sales tax, those states may require you to use their resale certificate to claim an exemption on those purchases.

How long does a resale certificate stay valid? 

Most states allow resale certificates to remain valid indefinitely until revoked. Some states impose expiration periods: Florida renews certificates annually with the sales tax registration, and Colorado and New Mexico expire certain exemptions after three years. Always confirm the expiration rules with the specific state.