If your business purchases items for resale, you might be eligible for a resale certificate. This certificate allows you to avoid paying sales tax at the time of purchase. This guide will walk you through what a resale certificate is, how to get one in each state, and how to use it correctly.
What Is a Resale Certificate?
A resale certificate is a document you provide to your supplier when buying goods you intend to sell to end customers. It confirms that your purchases are for resale, so the vendor does not charge you sales tax.
Sales tax is then collected when you sell the item to the end customer.
Resale certificates are state-specific in the U.S., meaning each state has its own unique rules, forms, and requirements.
It's important to note that a resale certificate is not the same as a sales tax permit (also known as a seller’s permit). You typically need to obtain a sales tax permit before you can issue resale certificates.
Basic Requirements & Key Concepts
Sales Tax Registration / Permit
In many states, you must first register with the state’s Department of Revenue and obtain a sales tax (or seller’s) permit. This registration usually provides you with a tax ID number that you'll include on your resale certificate.State-Specific Forms
Each state may use a unique resale certificate form. Some states also accept multistate / uniform certificates (e.g. MTC Uniform certificate) which can simplify compliance across multiple states.Out-of-State Resellers
If you are not physically located in a state but sell or ship goods there, some states will still permit you to use your home state registration on a resale certificate; others require in-state registration. Always check state rules.What Purchases Are Eligible
Only items purchased for resale (i.e. inventory) generally qualify. Items like tools, equipment, office supplies, or other consumables normally are not eligible.Record-Keeping & Retention
Keep copies of all resale certificates you issue or provide to vendors. In many states, sellers must retain certificates for several years to support tax audits.Expiration, Renewal, & Updates
Some states require periodic renewal or revalidation of resale certificates, or updates if your business information changes. Always confirm rules in each state. For more information, refer to this help article Understanding Resale Certificates: A State-by-State Guide
Steps to Get & Use a Resale Certificate
Register for sales tax / obtain a seller’s permit in the state(s) where you have nexus (or intend to do business).
Obtain the correct resale certificate form for the state(s), or a multistate/uniform certificate if accepted.
Fill out the form completely, including:
Your legal business name, address
Your state tax registration number (if applicable)
Description of goods or services you typically resell
Vendor (seller) name and address
Signature and date
Provide the completed certificate to your vendor / supplier before or at the time of purchase.
Ensure the vendor accepts it — sometimes there is back-and-forth if the vendor requires confirmation or rejects the form.
Maintain documentation — store copies of all certificates for future audits.
Renew or update the certificate as needed (if required by the state).
For multistate use, confirm each state you issue the certificate for will accept your form (some states have restrictions).
What We (as Your Service Provider) Can & Cannot Do
What we can do (if your plan includes this service):
Review your vendor/state request and provide templates or filled forms
Advise you on state-specific certificate rules
Help you with presentation to vendor (e.g. formatting, instructions)
What we cannot do:
Guarantee vendor acceptance (vendors may reject valid forms)
Override state law (if your business does not meet state requirements, certificate may not be issued)
Issue certificates for states where your business is not registered and that state explicitly requires in-state registration
Provide legal or tax advice