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RESALESales Tax exemption

Buy inventory in the US without paying Sales Tax.

If you buy products for resale in the US, a Resale Certificate can help you avoid Sales Tax on those purchases. Sell-U handles it for you, from Latin America.

100% remote process Support in Spanish Amazon, e-commerce and wholesale
State of California · BOE-230
Reseller Certificate
Sales Tax Exemption · Resale
VALID2026
Reseller / Purchaser
Acme Holdings LLC
EIN
87-1234567
Seller's Permit No.
SR FH 99-321456
Issued in
California
Description of property to be purchased
Consumer goods for resale through Amazon FBA, Shopify and authorized wholesale channels.
"I hereby certify that the property described herein is purchased for resale in the regular course of business and is not subject to sales tax."
M. Castaño
Authorized signature
15 May 2026
Effective date
Sales Tax on this order
$760.65$0.00
The basics

What is a Resale Certificate?

Also known as a Sales Tax Exemption Certificate, Reseller Certificate, Reseller Permit or Resale License. Different names, same document.

The document that prevents double taxation

A Resale Certificate exempts the holder from paying Sales Tax when buying certain goods from a supplier. In practice: businesses with this certificate don’t pay Sales Tax when they buy their inventory.

The logic is simple: if you buy products from a supplier and sell them to a customer, you’re a reseller. The US Sales Tax system is designed so the end consumer pays the tax, not the business reselling. The certificate guarantees exactly that: the product isn’t taxed twice.

Without certificate
You buy inventoryYou pay Sales Tax to the supplier
↓
You sell to the customerYou charge the customer Sales Tax
↓
ResultThe same product is taxed twice
With certificate
You buy inventoryYou present your certificate · no Sales Tax
↓
You sell to the customerYou charge the end customer Sales Tax
↓
ResultTaxed once · only the consumer pays

What it covers and what it doesn’t

The certificate only covers purchases of products you’re going to resell. You can’t use it for personal items, office supplies, furniture or equipment that isn’t part of the product you sell.

  • Certificate applies

500 units of a supplement to sell on Amazon.

  • Certificate doesn’t apply

A printer for your office.

What it’s really for

Three concrete uses. One means money back on every order.

For a business buying $50,000 in inventory a year, the certificate can mean $3,500 to $5,000 you no longer pay unnecessarily.

Buy inventory without paying Sales Tax

Every time you buy from a US supplier (wholesaler, manufacturer or distributor) you present your certificate and that purchase is exempt from state Sales Tax.

7%–10%Typical Sales Tax in CA, TX and NY on every inventory purchase.

Sell online with the right structure

When you sell on Amazon, Shopify or WooCommerce, the certificate tells the tax system your business operates as a legitimate reseller, not an end consumer.

ATEPWorks with the Amazon Tax Exemption Program for purchases on the platform.

Run wholesale channels with tax backing

Faire, distributors and wholesale stores require a valid certificate to sell to you at wholesale prices. Without it, some suppliers simply won’t open an account for you.

B2BAccess to wholesale pricing and suppliers who won’t sell without a certificate.
Who needs it

If you buy inventory in the US to resell, this applies to you.

Amazon FBA & ecommerce

Amazon FBA and e-commerce sellers

If you sell on Amazon.com or any marketplace and buy inventory in the US, the certificate lets you make those purchases without paying Sales Tax. Amazon has its own program (ATEP) where you can register the certificate so your purchases on the platform are exempt too.

Dropshipping

Dropshippers and no-inventory models

In dropshipping, who pays Sales Tax depends on who has nexus with the state. The certificate clarifies your place in the chain: you’re the seller, the supplier ships to the end consumer, and nobody charges you taxes you don’t owe.

Wholesale

Wholesalers and bulk buyers

If you buy in volume to resell on Faire, your online store or directly to retailers, the certificate presents your business as a legitimate reseller. You can issue a blanket certificate that covers all future purchases from the same supplier.

Importers

Physical product importers

If you make or buy your products outside the US and import them to sell there, the certificate applies to purchases inside the country: materials, components, packaging or anything that becomes part of your final product.

Real use cases

When do you use it?

It’s not a generic formality. The certificate comes into play in every specific transaction where you buy to resell.

01 / 04

When buying inventory from US suppliers

Wholesalers, manufacturers, distributors, retailers. Without the certificate, the supplier is required to charge you the tax.

02 / 04

In dropshipping operations

The tax chain has three parties: you, the supplier and the end customer. Without the certificate, the supplier charges you as if you were the end consumer.

03 / 04

In B2B wholesale sales

When you sell to other businesses or stores, the certificate structures the relationship correctly: your buyers present theirs, you show yours.

04 / 04

When importing and reselling physical products

For supplies, packaging or materials you buy inside the US for resale, whether the product comes from Latin America or anywhere else.

A business buying $100,000 in inventory a year in a state with 8% Sales Tax, without a certificate, is paying money that should have stayed in the business.

3 years of operation
$24K
USD that should have stayed in the business.
How it works in practice

How you use it once you have it.

How to present it to a supplier

When you open an account with a supplier, you present your certificate along with your Sales Tax Permit details. From then on, that supplier has you on file as a legitimate reseller and doesn’t charge you Sales Tax on qualifying purchases.

For large retailers like Amazon, Home Depot or national distributors, the process is digital: you enter your details in their tax exemption portal and your purchases are exempt automatically.

↻ Blanket certificate · covers all future purchases

Flexible vs strict states

The US has 50 independent tax systems. Not every state accepts a certificate issued in another state.

✓ Accept other states
  • · Texas
  • · Florida
  • · Illinois
  • · Ohio
  • · and 30+ more
✕ Require their own registration
  • · California
  • · Washington D.C.
  • · Connecticut
  • · Hawaii
  • · and others

What happens if you don’t have the certificate when you need it

On the buying side, you simply pay more on every inventory order. On the selling side, if an auditor reviews your transactions and can’t find the certificates backing your exemptions, you can end up paying the uncollected taxes plus interest and penalties.

Benefits of getting it with Sell-U

What it means to have it done right.

Real savings on every order

Every inventory order where you present your certificate is money that stays in your account. Savings can reach 6% to 10% of each order’s value.

Tax-compliant operations

Having the right certificate from the start prevents future problems with the US tax system. It’s not just saving today: it’s not having to fix costly mistakes later.

Better terms with suppliers

Many wholesalers and manufacturers only offer wholesale pricing to buyers who can present a valid certificate. The document opens doors that stay closed without it.

Clarity on what applies

Certificates aren’t the same in every state. We tell you exactly which documents you need based on where you buy and where you sell.

No language or system barriers

Forms vary by state and are in English. Registration systems can be confusing if you don’t know the US tax system. Sell-U navigates it for you.

Human support

A specialist guides you every step of the way, in your language. If a supplier rejects the certificate or you need to extend it to another state, you’re not alone.

FAQ

What matters, straight up.

Don’t see your question? Message us and a specialist will reply within 24 hours.

Talk to a specialist
Do I need a Resale Certificate if I sell on Amazon?
It depends on how your business works. If you buy inventory from US suppliers to sell on Amazon FBA, yes: the certificate lets you make those purchases without paying Sales Tax. On top of that, Amazon has ATEP (Amazon Tax Exemption Program), where you can register your certificate so your purchases on the platform are tax-exempt too. Without it, Amazon and your suppliers charge you taxes you could be avoiding.
Is the Resale Certificate valid in every US state?
Not automatically. If you buy from suppliers in several states, some will accept an out-of-state certificate, but twelve states plus the District of Columbia require you to get their own Sales Tax Permit to receive the exemption. The right strategy depends on where your main suppliers are and how much you buy in each state.
Is a Resale Certificate mandatory?
It’s not mandatory in the sense that no law requires it to operate. What does happen without it is that you pay Sales Tax on every inventory purchase when you shouldn’t have to. That money comes out of your margin on every order. Plus, many wholesalers only sell at wholesale prices to buyers who present the certificate.
What happens if I buy inventory without the certificate?
You simply pay the supplier’s state Sales Tax on every purchase. In most cases that money can’t be recovered directly. If you get the certificate later, it applies to future purchases, not retroactively. And if you’re selling without the right paperwork, an audit can find inconsistencies between what you bought, what you sold and the taxes you reported.
Does the Resale Certificate work if I don’t live in the US?
Yes, as long as you have an active US LLC with an EIN. You can apply with your LLC’s EIN. Even without an SSN you can get it; some states may require extra identity verification steps. Where the owner lives isn’t what matters: what matters is that the LLC is active and the certificate is tied to the company’s tax ID.
How often does the Resale Certificate need to be renewed?
Some states set expiration dates, so regular updates are recommended. Keep previous certificates until their audit periods close. As a rule, check validity at least once a year and update your details if your company changes structure, state or contact information.
Start today

Every purchase without a certificate is money that shouldn’t leave your business.

Sell-U reviews your operation, identifies which certificates you need and handles them correctly from the start. No state mix-ups, no confusion between documents and no paying taxes you don’t owe.

Free initial assessment, no commitment. We tell you which certificates you need for your operation before starting any process.