If you’re getting ready to buy inventory in bulk from an authentic distributor — to resell on Amazon, eBay, Walmart, or your own store — one of the first questions that comes up is whether you need a resale certificate before a supplier will sell to you. Short answer: in most cases, yes, and it also saves you money. Here’s what it actually is, why wholesale distributors ask for it, and how to get one.
What a Resale Certificate Actually Is
A resale certificate (also called a reseller’s permit, seller’s permit, or sales tax exemption certificate depending on the state) is a document that lets a registered business buy inventory tax-free, as long as that inventory is being bought to resell — not for personal or internal business use. Instead of paying sales tax on every wholesale order and hoping to recover it later, you show the certificate at time of purchase and the supplier doesn’t charge sales tax on that order. The end customer pays sales tax when the product is finally sold at retail, which is how it’s supposed to work under most state sales tax rules.
For a reseller placing recurring wholesale orders, this adds up. On a few thousand dollars of monthly inventory, skipping sales tax on every order is a meaningful ongoing saving compared to paying tax on stock that hasn’t sold yet.
Why Wholesale Suppliers and Distributors Ask For One
This ties directly into supplier verification (see our guide to spotting an authentic distributor vs. a gray-market reseller) — a legitimate wholesale distributor is generally required to either collect sales tax or keep a valid resale certificate on file to justify not collecting it. That means when a real distributor asks for your resale certificate (or EIN and business info) before opening a wholesale account, that’s a normal, expected part of doing business correctly — not an extra hoop. It’s actually a good sign: a supplier who doesn’t care about tax documentation at all is often not registered and compliant themselves.
What You Typically Need to Get One
Requirements vary by state, but generally you’ll need:
- A registered business (sole proprietorship, LLC, or corporation)
- An EIN (Employer Identification Number) from the IRS, or in some states a Social Security Number for a sole proprietor
- Your business’s legal name and address
- Registration with your state’s Department of Revenue (or equivalent) for a sales tax permit, which is usually the step that produces your resale certificate
Five states — Alaska, Delaware, Montana, New Hampshire, and Oregon — don’t have a statewide sales tax, so a resale certificate generally isn’t part of doing business in those states. Everywhere else, requirements and exact paperwork differ state to state, and some states have stricter rules about accepting a certificate issued by a different state. If you’re sourcing across state lines, the safest move is to confirm directly with your own state’s Department of Revenue (or a tax professional) exactly what’s required before you rely on it — state tax rules change and this guide isn’t tax or legal advice.
Resale Certificate vs. EIN vs. Business License — They’re Not the Same Thing
These three get confused a lot:
- EIN — your federal tax ID number, issued by the IRS. It identifies your business for tax purposes but by itself doesn’t exempt you from sales tax.
- Business license — permission from your city/county/state to operate a business at all. Not every state or city requires one to buy wholesale.
- Resale certificate — the document specifically tied to sales tax exemption on inventory bought for resale. This is the one a wholesale supplier is usually asking about.
Some distributors will accept just an EIN plus basic business information to open a wholesale account, especially if they collect sales tax on your orders directly and let you handle the resale/exemption side yourself. Others require the resale certificate up front. Either way, having your EIN, business registration, and (if you have one) resale certificate ready before you apply speeds up approval.
Getting Ready to Apply for a Wholesale Account
Before applying for a wholesale account with any distributor — including our own wholesale application — it’s worth having this documentation on hand: your EIN, basic business details, and your resale certificate or sales tax permit number if your state issues one. It’s the same documentation Amazon, eBay, and Walmart increasingly expect resellers to be able to produce when authenticity or sourcing is questioned (see our guide to what each marketplace expects), so getting it in order now saves time later.
Wholesale Distributors US works with verified reseller businesses across the US — have your EIN and resale certificate ready when you apply for a wholesale account.
FAQ
Do I need a resale certificate to buy wholesale?
In most states, yes — if you want to buy inventory tax-free for resale, a supplier will generally ask for a valid resale certificate or equivalent sales tax exemption documentation. Some distributors will still open an account without one and simply charge sales tax on your orders.
Is a resale certificate the same as a business license?
No. A business license gives you permission to operate; a resale certificate is specifically about sales tax exemption on goods bought for resale. You may need one, both, or neither depending on your state and business structure.
Can I use one state’s resale certificate to buy from a supplier in another state?
Sometimes, but not always — some states have stricter rules about out-of-state certificates. Check with your state’s Department of Revenue or a tax professional before assuming an out-of-state certificate will be accepted.
Do all states require a resale certificate?
No — five states (Alaska, Delaware, Montana, New Hampshire, and Oregon) don’t have a statewide sales tax, so the concept generally doesn’t apply there. Every other state has its own registration process.
Related reading: How to Verify an Authentic Wholesale Distributor | Wholesale Purchasing for Amazon, eBay & Walmart Resellers | Amazon FBA Wholesale Business Model Guide | Bulk Purchasing: Lower Your Unit Cost | What Is a Wholesale Account and How to Open One | Do You Need Product Liability Insurance to Sell Wholesale on Amazon? | Sales Tax Nexus for Wholesale Resellers: What Multi-State Selling Means for You | The INFORM Consumers Act: High-Volume Seller Guide | 1099-K Reporting Threshold for 2026: What Wholesale Resellers Need to Know
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