Resale Certificate and Tax-Exempt Wholesale Buying in the USA
Short answer: a resale certificate is the document your state issues that lets you buy stock for resale without paying sales tax on it. A US wholesale supplier asks for it so it can invoice you tax-free and still prove to the state why no tax was collected. Without one on file you will normally be charged sales tax on your wholesale order.
What a US wholesale supplier asks for
- EIN — your federal Employer Identification Number, which identifies the business rather than you personally.
- Resale certificate — sometimes called a resale licence, seller’s permit or sales tax exemption certificate depending on the state. It is issued by the state you trade in, not by the supplier.
- W-9 — asked for by some suppliers, optional with us.
We collect all three at sign-up so your tax status is set correctly on the very first invoice rather than being corrected afterwards. You can open a wholesale account and upload them in a few minutes.
Why it matters to your margin
Sales tax on a wholesale order is not a rounding error. On a $6,000 order in a state charging 7%, that is $420 tied up in tax you were never meant to pay on stock you are going to resell. You may be able to recover it later, but the cash has left your account in the meantime and the paperwork is yours to chase.
The certificate is not a discount and it is not a loophole. It exists because sales tax is designed to be paid once, by the final consumer. Your customer pays it at your till; you should not also pay it at ours.
Common questions
Is a resale certificate the same as a business licence?
No. A business licence lets you trade. A resale certificate deals only with sales tax on goods you intend to resell. Many buyers hold one and not the other, and a supplier needs the resale certificate specifically.
Does one certificate work in every state?
Not reliably. Certificates are issued by individual states, and states differ on whether they accept another state’s certificate or a multi-state form. If you trade in more than one state, check what each of them requires before you assume a single document covers you.
What if I have applied but not received it yet?
You can still order. Tell us at registration, order as a taxable buyer for now, and send the certificate through when it arrives so later invoices are issued tax-free. We would rather you start trading than wait.
I am buying from outside the United States. Do I need one?
No. US sales tax does not apply to goods leaving the country, so importers order without an account and without a resale certificate. What you will need instead is the export paperwork, which is covered on our export and worldwide shipping page.
Do you sell to individuals?
No. Everything here is sold by the case to businesses that resell, which is why the documentation is asked for at all.
What to have ready before you register
- Your legal business name exactly as it appears on your registration.
- Your EIN.
- A scan or clear photo of your resale certificate, showing the issuing state and the expiry date if it carries one.
- The address the stock will ship to, which is not always your registered address.
Have those four things in hand and the account takes minutes. Get them wrong and the first invoice has to be reissued, which costs you a day.
Then what?
Once the account is set, pricing is by the case across health and household, beauty and personal care and perfumes. If you are opening or restocking a store, case-pack wholesale for retail stores explains how the ordering works, and pharmacies and medical stores covers the health-side lines specifically. Payment routes are set out in our payment policy.
This is general information about how wholesale accounts work, not tax advice. Rules differ by state and change; confirm your own position with your accountant or your state’s revenue department.
Talk to us first if you prefer
Call +1 (754) 293-6834 between 9:00 AM and 6:00 PM EST, Monday to Saturday, or message WhatsApp support on +1 (365) 829-2085. Tell us what you sell and we will point you at the right lines before you register.
Ordering from American General Distributors: we supply retailers and resellers only. Every order carries a $5,000 minimum order value, which can be mixed across products. Send us your product list for a quote.
