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Key takeaways
- A resale certificate is a form a buyer gives a seller to purchase goods for resale without paying sales tax at the time of purchase.
- Rules and forms are set state by state in the United States. Some states accept a common multistate form.
- The seller must collect the certificate, check that it is complete and keep it. Without one, the seller may owe the tax.
- Buyers use it only for goods they will resell, not for goods they will use themselves.
Free PDF and Excel: Resale certificate collection checklist and register. Get it below
What a resale certificate is
A resale certificate is a document that a registered buyer gives to a seller to claim that goods are bought for resale, so the seller does not charge sales tax on the sale.
The idea behind sales tax is that it falls on the final customer. A retailer that buys stock to resell is not the final customer, so the tax is deferred until the retail sale. The certificate is the evidence that makes this work. The seller relies on it, and if it is wrong the state looks to the seller.
A furniture retailer orders 50 chairs from a manufacturer in another state. The retailer gives a completed resale certificate with its sales tax permit number. The manufacturer invoices with no sales tax and files the certificate.
Months later the state audits the manufacturer. The certificate is on file, complete and dated before the sale, so the manufacturer has the evidence it needs.
What the certificate normally contains
| Field | What goes in it | Why it matters |
|---|---|---|
| Buyer name and address | Legal name and address. | Identifies the buyer. |
| Seller name | The vendor receiving the form. | Certificates are given per seller or as blanket certificates. |
| Sales tax permit or registration number | Buyer's state registration. | Proves the buyer is registered. |
| Reason for exemption | Resale, with a description of the business or items. | States the basis. |
| Signature, title and date | Authorised person. | The buyer takes responsibility. |
| State or multistate form | Which form is used. | Not all states accept all forms. |
Free PDF and Excel
Resale certificate collection checklist and register
A checklist for collecting and checking resale certificates, and a register that tracks permit numbers and renewal dates.
- Collection checklist
- Field guide
- Buyer pitfalls list
- Excel register with renewal alerts
Seller routine
- Ask for a certificate before the first tax-free sale to a buyer.
- Check that every field is complete and the form is signed.
- Match the buyer's name and permit number to the order.
- Accept in good faith only if the goods fit the buyer's business.
- File the certificate and the sale together.
- Renew or re-collect it as your state requires.
Buyer pitfalls
- Using the certificate for supplies the buyer will consume, such as office equipment.
- An expired or unsigned certificate.
- Giving the certificate to a seller in a state that does not accept it.
- Forgetting to charge tax on the final resale.
- Not keeping the permit current.
A different exemption applies to charities, schools and government buyers. See tax exemption certificate. Vendor tax onboarding is covered by W-9.
- Form is complete and signed.
- Permit number is current.
- Goods fit the buyer's resale business.
- State accepts the form used.
- Certificate is on file with the sale.
- Renewal date is tracked.
Last checked: 19 October 2026. General US sales tax practice. Rules differ by state and change. Check the state tax authority or a tax adviser before accepting or issuing a certificate.
Frequently asked questions
What is a resale certificate used for?
To buy goods you intend to resell without paying sales tax at purchase.
Who issues a resale certificate?
The buyer completes and signs it and gives it to the seller. The state sets the form and the rules.
Does a resale certificate work across states?
Not always. Some states accept a multistate form and others require their own. Check before you use one.
How long must a seller keep resale certificates?
As long as your state requires for audit, often several years. Check with your state.
Can I use a resale certificate for office supplies?
No. It applies only to items you will resell, or in some states to components of goods you make for sale.