A resale certificate is a form you give a wholesale supplier to show that you are buying products to resell, not to use yourself. When the supplier accepts it, it does not charge you sales tax on the order, because sales tax is collected later, when the product is sold to the final customer.
For Amazon sellers buying wholesale, a resale certificate is one of the first documents a supplier asks for. This guide explains what it is, how to get one and what happens if you buy without it.
Quick answer: A resale certificate is a document that lets a registered business buy inventory for resale without paying sales tax to the supplier. In most states you first register for a seller’s permit, then fill in your state’s resale certificate form and give it to each supplier.
What a Resale Certificate Does
Sales tax is meant to be paid once, by the end customer. A resale certificate stops it from being charged twice: once when you buy from the supplier and again when your customer buys from you.
It also protects the supplier. If a state audits the supplier, the certificate on file shows why it did not collect sales tax on your order. That is why legitimate suppliers ask for it before they ship tax-free.
Do I Need a Resale Certificate to Buy Wholesale?
Not always, but it usually saves you money. Without one, many suppliers will either:
- charge you sales tax on the order, which cuts into your margin, or
- decline to open a wholesale account at all.
Some suppliers ship to states where they do not collect sales tax, so the rules on your invoice can vary. Either way, having a valid certificate ready makes every wholesale application faster.
How to Get a Resale Certificate to Sell on Amazon
The exact steps depend on your state, but the process usually looks like this:
- Register your business as a sole proprietorship, LLC or corporation.
- Get an EIN from the IRS. It is free, and most state registrations ask for it. See EIN for Amazon wholesale.
- Register for a seller’s permit (sales tax permit) with your state’s tax agency. You will get a registration or permit number.
- Fill in your state’s resale certificate form using that number, your business details and a description of what you buy for resale.
- Give a copy to each supplier. Many suppliers ask for it with your wholesale application and keep it on file.
The seller’s permit and the resale certificate are related but not the same thing. We explain the difference in seller’s permit vs resale certificate.
Do Wholesale Suppliers Charge Sales Tax Without a Resale Certificate?
Often, yes. If a supplier is required to collect sales tax in the state it ships to and you have not given it a valid certificate, it will usually add sales tax to your invoice. Some suppliers will not sell at wholesale pricing without one.
You may be able to claim that tax back from your state later, but it ties up cash and adds paperwork. It is simpler to send the certificate before your first order.
Out-of-State Resale Certificates
Amazon sellers often buy from suppliers in other states, which raises a common question: will a supplier accept your home-state certificate?
It depends on the state. Some states accept a resale number from another state, some only under conditions, and a few require you to be registered in their state. Two multistate forms can help:
- The Uniform Sales & Use Tax Certificate, from the Multistate Tax Commission, lists many states on one form. The MTC’s FAQ explains how it works and notes that each state decides whether to accept it.
- The Streamlined Sales Tax Certificate of Exemption is accepted in the states that belong to the Streamlined Sales Tax agreement.
Check with the supplier’s state, or ask the supplier which form it accepts.
This article is general information, not legal or tax advice. Rules change and vary by state, so check with your state’s tax agency or an accountant.
What We Ask For
When you apply for an account with us, we may ask for a copy of your seller’s permit or resale certificate along with your EIN. See the full list on our wholesale account requirements page.
For the bigger picture, including finding and applying to suppliers, read our guide on how to open a wholesale account for Amazon FBA.
Frequently Asked Questions
Is a resale certificate the same as a seller’s permit?
No. A seller’s permit registers you to collect sales tax. A resale certificate is the form you give a supplier to buy tax-free. You usually need the permit first.
Does a resale certificate expire?
It depends on the state. Some certificates stay valid as long as your business is active, and some states require you to renew them every few years. Check your state’s rules.
Do I need a resale certificate if I only sell on Amazon?
If you buy inventory to resell, a resale certificate is still useful. Amazon collects and sends sales tax on most marketplace orders in states with marketplace facilitator laws, but your purchases from suppliers are a separate transaction.
Can I use one resale certificate for every supplier?
You usually give each supplier its own copy. Many states allow a “blanket” certificate that covers all future purchases from that supplier.