Resale Certificate for Antique Dealers: Buy Inventory at Estate Sales and Auctions Tax-Free
Antique dealers buy from a wider variety of sources than almost any other retail business. Estate sales, auctions, flea markets, other dealers, private sellers, pickers, and online marketplaces. Every one of those purchases becomes inventory for your shop, booth, or online store. A resale certificate ensures you do not pay sales tax on inventory that you will resell.
A typical antique dealer or vintage shop spends $3,000 to $15,000 per month on inventory acquisition. High-volume dealers working the auction circuit can spend $30,000 or more. At 7% tax, that is $2,520 to $25,200 per year in savings.
Where Antique Dealers Buy (and How the Certificate Applies)
Estate sales. Estate sale companies (EstateSales.net, EstateSales.org listings) sell the contents of homes. Most professional estate sale companies will accept your resale certificate and sell to you tax-free. Present it when you register at the sale or at checkout. Some amateur-run sales may not have the infrastructure to process tax exemptions, in which case you may need to document the purchase for use tax credit purposes.
Auctions. Live auction houses (local auctioneers), online auction platforms (LiveAuctioneers, HiBid, AuctionZip, Invaluable), and estate auction companies all sell antiques and collectibles. Most auction houses accept resale certificates. Register your certificate with the auction house before bidding. The buyer's premium is typically part of the taxable amount, so having your certificate exempts you from tax on the hammer price plus premium.
Flea markets and antique shows. When buying from other dealers at flea markets, antique shows, or vintage markets, present your certificate. The selling dealer should not charge you tax on items you are buying for resale. Brimfield (Massachusetts), Round Top (Texas), and Scott Antique Markets (Atlanta) are major events where dealer-to-dealer transactions happen at high volume.
Other dealers. Buying from another antique shop (dealer-to-dealer purchase) is the same as any wholesale transaction. Present your certificate.
Pickers and private sellers. When you buy from a private individual (not a registered business), there is no sales tax transaction to exempt because the seller is not collecting sales tax. However, you may owe use tax on the purchase in some states. The rules vary. Many states do not impose use tax on purchases from non-registered sellers that are intended for resale, but check your state's rules.
Online marketplaces. eBay, Chairish, 1stDibs, Ruby Lane, and Etsy (for vintage items you buy for resale in your shop). Marketplace platforms may collect sales tax automatically. Contact the platform or seller to claim your resale exemption.
What You Can Buy Tax-Free
Everything you buy with the intent to resell qualifies:
- Furniture (Victorian, mid-century modern, Art Deco, rustic, industrial)
- Art and prints (paintings, lithographs, etchings, photography)
- Pottery and ceramics (Roseville, McCoy, Fiesta, studio pottery)
- Glassware (depression glass, carnival glass, art glass, crystal)
- China and porcelain (Meissen, Haviland, Wedgwood, Flow Blue)
- Silver and silverplate (sterling flatware, serving pieces, tea sets)
- Jewelry (estate jewelry, costume vintage, watches)
- Books and ephemera (first editions, vintage magazines, postcards, maps)
- Collectibles (coins, stamps, sports memorabilia, advertising signs)
- Textiles (quilts, rugs, tapestries, vintage clothing)
- Lighting (chandeliers, lamps, sconces)
- Architectural salvage (doors, hardware, mantels, stained glass)
- Toys and games (vintage toys, tin toys, board games)
- Clocks and watches
- Musical instruments (vintage guitars, pianos, horns)
What You CANNOT Buy Tax-Free
| Item | Why It Is Taxable |
|---|---|
| Display cases and shelving | Store equipment |
| Restoration supplies (not resold) | Business supply |
| Furniture polish and cleaning products (shop use) | Business supply |
| Booth rental fees | Service, not tangible property |
| Packing materials (for shipping to buyers) | See note below |
| Business vehicle | Business asset |
| Antique appraisal tools and reference books (personal use) | Business supply |
Packing materials. Boxes, bubble wrap, and packing peanuts used to ship sold items to customers may be tax-exempt in some states because they are part of the product delivery. Other states consider shipping materials a business supply. This varies by state.
Restoration and Repair
Many antique dealers restore items before selling them: refinishing furniture, reupholstering chairs, cleaning and polishing silver, repairing clocks. The supplies used in restoration have mixed tax treatment:
Supplies that become part of the product. Upholstery fabric that is physically attached to a chair you resell may qualify as a component of the resale product in some states. The fabric becomes part of what the customer buys.
Supplies consumed in the process. Sandpaper, stripper, and steel wool are consumed during refinishing. They do not become part of the finished product. These are business supplies, not resale items.
Replacement parts. A new clock movement installed in an antique clock case, or new hardware added to a dresser, becomes part of the product sold. These may qualify under the resale exemption in some states as components of the resale item.
The distinction is between items that become physically part of the product sold and items that are consumed during the restoration process. State rules vary on this, so consult your state's guidance.
Antique Mall and Booth Rental
Many antique dealers sell through booths rented at antique malls rather than (or in addition to) operating their own store.
How booth rental works. You rent space (typically $100 to $500 per month depending on size and location), stock it with your inventory, and the mall handles sales and tax collection. The mall collects sales tax from customers on your behalf.
Who needs the resale certificate? You do. The certificate covers your inventory purchases. The antique mall collects sales tax from retail customers on your behalf, but you still need the certificate to buy your inventory tax-free from estate sales, auctions, and other sources.
Mall commission. The antique mall typically takes 10-20% of the selling price as commission. This is a service fee, not a taxable transaction between you and the mall. Your cost for the commission is a business expense.
Online Sales Considerations
Many antique dealers sell through multiple channels: their shop, antique mall booth, eBay, Etsy, 1stDibs, Chairish, Ruby Lane, and their own website. If you sell across state lines through these platforms, you may have economic nexus obligations in other states.
Major marketplace platforms (eBay, Etsy) now collect and remit sales tax on behalf of sellers in most states under marketplace facilitator laws. This simplifies your compliance but does not eliminate the need for your home state's resale certificate for purchasing.
Dollar Savings
| Dealer Type | Monthly Inventory Purchases | Annual Tax Savings (7%) |
|---|---|---|
| Part-time picker/booth dealer | $1,500 | $1,260 |
| Single-booth antique mall dealer | $3,000 | $2,520 |
| Small antique shop | $8,000 | $6,720 |
| High-volume dealer (shop + online) | $20,000 | $16,800 |
| Multi-location or estate buyer | $40,000+ | $33,600+ |
Common Mistakes
Not presenting the certificate at estate sales. Many dealers pay tax at estate sales out of habit or because they do not want the hassle of showing paperwork. Over a year, this adds up to thousands in unnecessary tax.
Buying personal items on the resale certificate. That lamp you bought for your own living room is not inventory. Auditors in antique businesses specifically look for personal purchases mixed with inventory, because the categories overlap heavily.
Not tracking cost basis. When you sell an item, you owe sales tax on the selling price. But for income tax purposes, you need the cost basis. Keep records of what you paid for each item (including buyer's premiums at auction).
Assuming all private sales are tax-free. Buying from a private individual (not a registered business) does not always mean the transaction is free of tax obligations. Some states impose use tax on purchases for business use, even from private parties. The resale exemption may cover you, but document the transaction.
How to Get Started
- Apply for your resale certificate through your state or our service.
- Register your certificate with regular auction houses. Any house you bid with regularly should have it on file.
- Carry copies to estate sales and flea markets. Keep printed copies in your vehicle. Some dealers carry a laminated copy and a stack of photocopies.
- Set up your record-keeping system. Track every purchase (source, date, price, item description) for both tax and accounting purposes.