Get Exempt From Sales Tax

How To Not Pay Sales Tax On the Items You're Reselling

If you’re reselling on eBay, Amazon, or other platforms, you don’t have to pay sales tax when purchasing inventory. Instead of paying tax upfront, resellers can claim sales tax exemption by using a Reseller Permit or by filing for a sales tax refund at the end of the year.

This guide will walk you through: ✔️ How to obtain a Reseller Permit ✔️ How to claim tax exemption when buying inventory ✔️ How to file for a sales tax refund if you’ve already paid ✔️ Which retailers accept reseller exemptions

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1️⃣ What is Sales Tax & How Can Resellers Avoid It?

📌 Sales tax is a state-level tax charged on the sale of goods and services. However, businesses that resell goods are not required to pay sales tax when purchasing inventory. Instead, tax is collected when the item is sold to the final customer.

✔️ Resellers can avoid paying sales tax upfront by obtaining a Reseller Permit. ✔️ If a retailer doesn’t accept reseller permits, you can file for a tax refund at the end of the year.

💡 Pro Tip: Not all retailers accept resale exemptions—know which stores allow it before purchasing.

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2️⃣ How to Get a Reseller Permit (Tax Exemption Certificate)

📌 A Reseller Permit (also called a Sales Tax Exemption Certificate) allows you to buy inventory without paying sales tax.

✅ Steps to Obtain a Reseller Permit:

1️⃣ Apply through your state’s tax agency (links provided below). 2️⃣ Provide business information (LLC or Sole Proprietor details). 3️⃣ Receive your Reseller Permit Number (processing times vary by state).

💡 Pro Tip: Some states require renewals—check if your permit expires.

🔗 Find your state’s reseller application here: Reseller Tax Exemption Applications

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3️⃣ How to Use Your Reseller Permit to Avoid Sales Tax

📌 Once you have a Reseller Permit, follow these steps to claim tax exemption at checkout.

✅ Steps to Use a Reseller Permit:

✔️ Provide your Reseller Permit Number to the retailer before purchasing. ✔️ If purchasing online, upload your certificate to the retailer’s tax exemption portal. ✔️ Keep copies of all tax-exempt purchases for record-keeping and audits.

💡 Pro Tip: Not all retailers accept reseller permits. Here’s where it works best:

✔️ Retailers That Accept Reseller Permits:

• Walmart ✅

• Best Buy ✅

• eBay ✅

• Most Wholesalers & Distributors ✅

❌ Retailers That Typically Reject Reseller Permits:

• Target ❌ (actively blocks resellers from using tax exemptions)

• Certain online marketplaces ❌

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4️⃣ How to Get a Sales Tax Refund for Paid Taxes

📌 If you’ve already paid sales tax on inventory, you may be eligible for a refund.

✅ Steps to File for a Sales Tax Refund:

1️⃣ Check your eligibility – You must have a valid Reseller Permit and have paid tax on items purchased for resale. 2️⃣ Gather documentation – You’ll need invoices, receipts, and proof of sales tax paid. 3️⃣ Complete your state’s Request for Refund Form (varies by state). 4️⃣ Submit the form & wait for processing (can take several weeks).

💡 Example: In Texas, resellers file Form 00-957 to claim a refund.

🔗 Find your state’s refund form: Texas Sales Tax Refund Form

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5️⃣ Best Practices for Managing Sales Tax Exemptions

✔️ Always keep records – Track all tax-exempt purchases in case of an audit. ✔️ Verify exemption policies – Some retailers may require extra paperwork. ✔️ Renew your permit – Some states require annual renewals for tax exemptions. ✔️ Check state-specific exemptions – Some states don’t charge sales tax at all (Alaska, Delaware, Montana, New Hampshire, Oregon).

💡 Pro Tip: Certain products (e.g., food, medical supplies) may have additional tax exemptions—check your state’s rules.

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6️⃣ Final Thoughts: How to Save Thousands on Sales Tax

🚀 Using a Reseller Permit can save resellers thousands of dollars per year.

✔️ Apply for your Reseller Permit to avoid paying sales tax on inventory. ✔️ Use your exemption certificate at checkout with retailers that accept it. ✔️ File for a tax refund if you’ve already paid sales tax on resold items.

💰 Master this process, and you’ll keep more profit in your pocket instead of paying unnecessary taxes! 🚀

📌 Reseller Tax Exemption Applications by State

State	Reseller Permit Application Link
Alabama	Alabama Sales Tax Certificate of Exemption
Alaska	No state sales tax (No reseller permit required)
Arizona	Arizona Transaction Privilege Tax Exemption
Arkansas	Arkansas Sales and Use Tax Resale Certificate
California	California Resale Certificate
Colorado	Colorado Sales Tax Exemption Certificate
Connecticut	Connecticut Resale Certificate
Delaware	No state sales tax (No reseller permit required)
Florida	Florida Annual Resale Certificate for Sales Tax
Georgia	Georgia Sales and Use Tax Certificate of Exemption
Hawaii	Hawaii General Excise / Use Tax Exemption Certificate
Idaho	Idaho Resale Certificate
Illinois	Illinois Certificate of Resale
Indiana	Indiana Sales Tax Exemption Certificate
Iowa	Iowa Sales Tax Exemption Certificate
Kansas	Kansas Resale Exemption Certificate
Kentucky	Kentucky Resale Certificate
Louisiana	Louisiana Resale Certificate
Maine	Maine Sales Tax Exemption Certificate
Maryland	Maryland Sales and Use Tax Exemption Certificate
Massachusetts	Massachusetts Sales Tax Resale Certificate
Michigan	Michigan Sales and Use Tax Certificate of Exemption
Minnesota	Minnesota Sales and Use Tax Exemption Certificate
Mississippi	Mississippi Sales Tax Resale Certificate
Missouri	Missouri Sales and Use Tax Exemption Certificate
Montana	No state sales tax (No reseller permit required)
Nebraska	Nebraska Resale or Exempt Sale Certificate
Nevada	Nevada Exemption Certificate
New Hampshire	No state sales tax (No reseller permit required)
New Jersey	New Jersey Sales Tax Exemption Certificate
New Mexico	New Mexico Nontaxable Transaction Certificate
New York	New York State Resale Certificate
North Carolina	North Carolina Streamlined Sales Tax Agreement Certificate of Exemption
North Dakota	North Dakota Sales and Use Tax Resale Certificate
Ohio	Ohio Sales and Use Tax Blanket Exemption Certificate
Oklahoma	Oklahoma Sales Tax Resale Certificate
Oregon	No state sales tax (No reseller permit required)
Pennsylvania	Pennsylvania Exemption Certificate
Rhode Island	Rhode Island Sales Tax Resale Certificate
South Carolina	South Carolina Resale Certificate
South Dakota	South Dakota Sales and Use Tax Exemption Certificate
Tennessee	Tennessee Sales and Use Tax Certificate of Resale
Texas	Texas Sales and Use Tax Resale Certificate
Utah	Utah State Tax Commission Exemption Certificate
Vermont	Vermont Sales Tax Exemption Certificate
Virginia	Virginia Sales and Use Tax Certificate of Exemption
Washington	Washington Reseller Permit Application
West Virginia	West Virginia Sales and Use Tax
Wisconsin	Wisconsin Sales and Use Tax Exemption Certificate
Wyoming	Wyoming Sales Tax Exemption Certificate

🚀 Apply now and start saving on sales tax for your reselling business!