Resale Certificate for Amazon Wholesale: What It Is and How to Get One
Distributors ask for it, and beginners get stuck on it. Here’s what a resale certificate is, where you get it, and how, step by step.
A resale certificate tells your supplier you’re buying to resell, so they don’t charge you sales tax on your inventory. You get it from the tax department of the state where your LLC is registered: first you register for a sales tax permit, then you fill in that state’s resale form for each supplier. Every state does it a little differently, and it works for owners who live outside the US too.
Sooner or later a distributor’s application asks for your resale certificate. For a lot of beginners, that’s the first time they hear the term, and it stops them for a few days. It shouldn’t. It’s paperwork, not a test.
Here’s what it is, why suppliers want it, where you get it, and how, step by step. I’ll also cover what changes if you live outside the US, and the mistakes I see most.
What is a resale certificate?
A resale certificate is a document you give a supplier to show that you’re buying the goods to resell them, not to use them yourself. Because you’ll resell them, the supplier doesn’t charge you sales tax. The tax gets paid later, once, by the final customer.
Depending on the state, it goes by different names: reseller’s permit, resale license, seller’s permit, sales tax exemption certificate, or resale exemption certificate. When a supplier asks for any of these, they mean the same thing.
Do you need a resale certificate for Amazon wholesale?
Amazon doesn’t ask for it. Your suppliers do. Many distributors put it on their account application, next to your EIN and business details, and some won’t open an account without it. Others will sell to you anyway, but they add sales tax to every invoice.
That tax hurts more than it looks. Real wholesale ROI usually runs 10 to 30%, so paying an extra 6 or 7% on every order can wipe out a big part of your profit.
What about sales tax on what you sell? On Amazon, that part is handled for you. Every US state with a sales tax now has a marketplace facilitator law, so Amazon collects and pays the sales tax on your Amazon sales. Missouri was the last state, from January 2023. The resale certificate is about the buying side.
How the model works, finding real suppliers, getting approved, checking the numbers, and placing your first order. Free, no credit card.
Where do you get a resale certificate?
From the state where your LLC is registered. For most of my students in the US, that’s the state they live in. It comes from that state’s department of revenue or tax department, not from Amazon and not from the IRS.
It helps to keep the pieces apart, because people mix them up all the time:
If your LLC is in Alaska, Delaware, Montana, New Hampshire or Oregon, there’s no statewide sales tax, so there’s no state resale certificate to get. Suppliers handle that differently, so ask yours what they need from you.
How to get a resale certificate, step by step
1. Form your LLC and get your EIN. The certificate is issued to your business, so this comes first. I walk through it in how to get an LLC and EIN for Amazon wholesale.
2. Register for a sales tax permit with your state. Most states let you do it online, on the department of revenue’s website. Have your LLC details, your EIN, ID details for the owner, a bank account, and a rough estimate of your monthly sales ready.
3. Get your state’s resale form. Some states use a numbered form, like California’s CDTFA-230 or Georgia’s ST-5. Florida sends registered businesses an annual resale certificate. In Colorado, the sales tax license itself does the job. Forms change, so always download yours from your state’s tax website.
4. Fill it in for each supplier. In many states it’s a blanket certificate: you give it to a supplier once and it covers your future orders with them. Some states want one per purchase. Send it with your account application and keep a copy of everything you send.
5. Stay registered. Once you have a sales tax permit, many states expect a sales tax return on the schedule they give you, even when you owe nothing because Amazon collected the tax. That’s called a zero return. Missed filings can bring penalties, so put the dates in your calendar.
Can you get one if you live outside the US?
Yes. My mentees who live outside the US get one too. The steps are the same: the certificate comes from the state where your US LLC is registered, and you follow that state’s process. For non-US owners that’s often Wyoming, for the reasons in the LLC and EIN guide.
The one thing that can slow you down is the registration form. Some states ask for personal ID details like a Social Security number. If you don’t have one, contact that state’s tax department and ask what they accept instead.
What if your supplier is in another state?
Your distributor is often in a different state than your LLC. Some will accept your home state’s certificate. Some want their own state’s form. Some accept the Multistate Tax Commission’s Uniform Sales & Use Tax Certificate, which is meant to work across states, but the commission itself says it can’t guarantee any state will accept it.
The simple fix: ask the supplier which form they need before you fill anything in. Their application usually tells you. If you’re still building your supplier list, start with how to find wholesale suppliers.
Mistakes to avoid
- Only use it for inventory you resell. Office supplies, equipment, or anything you use in the business yourself isn’t covered. You’d owe use tax on those instead.
- Watch the expiry date. Some states make certificates expire or need renewing. Check yours and renew in time, or suppliers start adding tax again.
- Don’t skip the zero returns. Amazon collecting the tax doesn’t always end your filing duty. Check your state’s rules.
- Send the right form. If a supplier asks for their state’s form, a certificate from a different state won’t do.
One honest note: I’m not an accountant. Sales tax rules change and differ by state, so check your state’s tax website or ask an accountant before you file anything. My advice: get it done early, before your first distributor application. After that, the only thing left to remember is the filing dates. For the full list of paperwork, see what documents you need for Amazon wholesale.
Book a free 20-minute call and ask me anything about Amazon wholesale: suppliers, ungating, your numbers, whatever you’re stuck on. I’ll also show you how I work with sellers, so you know your options. No pressure to buy anything.