A seller’s permit and a resale certificate are two different documents that work together. The seller’s permit registers your business with your state to collect sales tax. The resale certificate is the form you give a supplier so you can buy inventory without paying sales tax on it.
Amazon sellers often mix them up because suppliers mention both in the same breath. This short guide sets out the difference.
Quick answer: A seller’s permit is issued by your state and lets you collect sales tax. A resale certificate is filled in by you, using your permit number, and lets you buy for resale tax-free. In most states you need the permit before you can use a resale certificate.
Seller’s Permit vs Resale Certificate at a Glance
| Seller’s permit | Resale certificate | |
|---|---|---|
| What it does | Registers you to collect and report sales tax | Lets you buy inventory for resale without paying sales tax |
| Who issues it | Your state’s tax agency | You fill it in (on your state’s or a multistate form) |
| Who you give it to | You keep it; your state has it on file | Each supplier you buy from |
| Other names | Sales tax permit, sales tax license, seller’s license | Resale exemption certificate, reseller’s permit (in some states) |
| Do you need it first? | Yes, in most states | Uses your seller’s permit number |
Is a Seller’s Permit the Same as a Resale Certificate?
No. They are linked, because the resale certificate usually carries your seller’s permit number, but they do different jobs:
- The permit faces your state. It says your business is registered to collect sales tax.
- The certificate faces your supplier. It says this purchase is for resale, so the supplier should not charge sales tax.
Some states use different names, and a few call the certificate a “reseller’s permit,” which adds to the confusion. If in doubt, ask the supplier which document it needs.
Sales Tax Permit vs Resale Certificate for Amazon Sellers
For Amazon sellers, the order usually goes like this:
- Register your business and get an EIN.
- Apply for a seller’s permit (sales tax permit) with your state.
- Use your permit number to fill in a resale certificate.
- Send the certificate to each wholesale supplier.
Amazon collects and sends sales tax on most marketplace orders, but your purchases from suppliers are separate, which is why suppliers still ask for a resale certificate.
How to Get a Seller’s Permit for Amazon Wholesale
Apply through your state’s tax agency. Most states let you register online, and many issue the permit quickly. You will typically need your business name and address, your EIN or SSN, your business structure and a description of what you sell. The SBA’s page on licenses and permits is a good starting point.
Your business structure matters too. Sole proprietors and LLCs can both get a permit; see do you need an LLC to sell wholesale on Amazon.
For the step-by-step on the certificate itself, read what is a resale certificate for Amazon sellers.
This article is general information, not legal or tax advice. Rules and names vary by state.
Which One Do Suppliers Ask For?
Most wholesale suppliers ask for your resale certificate, and some also ask for a copy of your seller’s permit. We list exactly what we need on our wholesale account requirements page.
If you are just getting started, our full guide on how to open a wholesale account for Amazon FBA puts these documents in order.
Frequently Asked Questions
Do I need both a seller’s permit and a resale certificate?
Usually, yes. In most states you get the permit first and use its number on the resale certificate you give suppliers.
Is a sales tax permit the same as a seller’s permit?
Yes. States use different names for the same registration, including sales tax permit, seller’s permit and sales tax license.
What if my state has no sales tax?
A few states have no statewide sales tax. Suppliers may still ask for proof that you are a reseller, so ask what they accept.