Arkansas Resale Certificate Guide 2026: How to Get Yours

Arkansas has a diversified economy anchored by agriculture, retail (Walmart is headquartered in Bentonville), transportation, and manufacturing. The state imposes a 6.5% state sales tax rate, and combined rates can reach up to 11.625% with city and county taxes added. As a Streamlined Sales Tax (SST) member state, Arkansas uses the SST Certificate of Exemption as its primary resale certificate. This guide covers the full process for 2026.

Arkansas Sales Tax Basics

State Rate

The Arkansas state sales tax rate is 6.5%, one of the higher base rates in the country. Cities and counties add local taxes that can push the combined rate above 11%. Little Rock has a combined rate around 9.625%, while some smaller jurisdictions have combined rates exceeding 11%.

Use Tax

Arkansas imposes a use tax at the same rate as its sales tax on goods purchased from out-of-state vendors when the seller does not collect Arkansas sales tax. If you buy inventory from a supplier who does not charge Arkansas tax, you owe use tax unless the purchase qualifies for the resale exemption.

What Is Taxable in Arkansas?

Arkansas taxes most tangible personal property and many services:

• Most physical goods are taxable
• Groceries are taxable at a reduced state rate of 0.125% (local taxes still apply)
• Prescription drugs are exempt
• Clothing is fully taxable
• Many services are taxable in Arkansas, including repair, installation, and cleaning services
• Digital products and software are generally taxable
• Used goods are taxable at the same rate as new goods

What Form Do You Need?

Arkansas uses Form ST391, the Streamlined Sales Tax Certificate of Exemption. This is the standard exemption form for all SST member states, customized for Arkansas.

About Form ST391

Form ST391 is a multi-purpose exemption certificate that covers resale, manufacturing, agricultural, and other qualifying exemptions. When claiming a resale exemption, select the appropriate reason code on the form.

Key fields include:

• Purchaser's name, address, and phone number
• Arkansas sales tax permit number or SST registration ID
• Type of exemption claimed (resale)
• Description of products being purchased for resale
• Purchaser's signature and date
• The state(s) where the exemption applies

Where to Get the Form

Form ST391 is available as a free download from the Arkansas Department of Finance and Administration (DFA) website at dfa.arkansas.gov. You can also download the standard SST Certificate of Exemption from the Streamlined Sales Tax Governing Board website.

Who Needs an Arkansas Resale Certificate?

Any business purchasing tangible personal property for resale needs an Arkansas resale certificate. This includes:

Retailers buying inventory to sell through brick-and-mortar stores, online platforms, craft shows, farmers markets, or trade shows.

Wholesalers and distributors purchasing goods from manufacturers or importers for redistribution to retailers or other businesses.

Online sellers registered in Arkansas who buy inventory for resale through Amazon, eBay, Etsy, Shopify, or any other platform.

Manufacturers purchasing raw materials and components that become ingredients of a finished product manufactured for sale.

Restaurants and food businesses buying food ingredients that will be prepared and sold as meals. Given Arkansas's broad taxability of services, food service businesses should pay close attention to which purchases qualify.

Who Does NOT Qualify

• Consumers buying for personal use
• Businesses buying supplies, tools, or equipment for their own internal use
• Contractors purchasing materials for installation into real property

How to Apply for an Arkansas Resale Certificate

Step 1: Register for an Arkansas Sales Tax Permit

You need an active Arkansas sales tax permit before you can issue a valid Form ST391. The Arkansas Department of Finance and Administration handles registration.

What you need to register:

• Federal EIN or SSN
• Business legal name and DBA (if applicable)
• Business address and mailing address
• Type of business entity
• Description of business activities
• Expected start date of taxable sales
• Estimated monthly taxable sales

Registration is free. Apply online through the Arkansas Taxpayer Access Point (ATAP) portal.

Processing time: Online applications are generally processed within 5 to 10 business days.

Step 2: Complete Form ST391

Download the form from the DFA website or use the SST certificate. Fill in your business details, select the resale exemption, enter your Arkansas sales tax permit number, and describe the products you will purchase for resale.

Step 3: Provide the Certificate to Your Suppliers

Give the completed Form ST391 to each vendor from whom you want to buy tax-free. The vendor keeps the certificate on file and does not charge sales tax on qualifying resale purchases.

Want help with the process? We handle everything from registration to certificate completion.

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Multi-State Considerations

Arkansas is a full member of the Streamlined Sales Tax (SST) agreement, which simplifies multi-state compliance for businesses operating in multiple states.

SST Membership

As an SST member, Arkansas accepts the SST Certificate of Exemption. Businesses registered through the SST system can use a single certificate format across all SST member states, including Arkansas.

This is especially convenient for businesses that buy inventory from suppliers in multiple states. One certificate format covers all SST member states.

Out-of-State Sellers

Arkansas's economic nexus threshold is $100,000 in sales or 200 transactions with Arkansas customers in the preceding calendar year. If you meet either threshold, you must register and collect Arkansas sales tax.

Marketplace Facilitator Rules

Arkansas requires marketplace facilitators (Amazon, eBay, Walmart, Etsy) to collect and remit sales tax on behalf of third-party sellers. If you sell exclusively through a marketplace, the marketplace handles your Arkansas sales tax. If you also sell directly, you need your own Arkansas sales tax permit.

For more on multi-state compliance, see our multi-state resale certificate guide.

Common Mistakes with Arkansas Resale Certificates

Mistake 1: Using the Certificate for Taxable Services

Arkansas taxes many services that are exempt in other states. If you purchase a taxable service (like equipment repair or cleaning) and claim the resale exemption, you need to ensure that the service itself will be resold. Using the certificate for services consumed by your business rather than resold to a customer is a common audit finding.

Mistake 2: Not Filing Use Tax on Out-of-State Purchases

If you buy from an out-of-state vendor who does not collect Arkansas tax, you owe use tax on any non-exempt purchases. Many businesses overlook this obligation, especially for small purchases. Arkansas auditors routinely check for unreported use tax.

Mistake 3: Incomplete Certificate Information

Form ST391 requires specific fields to be completed, including the permit number, exemption type, and description of goods. An incomplete certificate is treated as invalid, and the seller may be liable for uncollected tax if the certificate is missing key information.

Mistake 4: Confusing the Grocery Tax Reduction with a Full Exemption

Arkansas reduced the state sales tax on groceries to 0.125%, but local taxes still apply at their full rates. Some businesses mistakenly believe groceries are fully exempt. If you are a grocery retailer purchasing food for resale, your resale certificate exempts you from all taxes (state and local) on those purchases.

Arkansas-Specific Rules You Should Know

Broad Service Taxability

Arkansas is one of the states that taxes a wide range of services. Repair services, cleaning services, pest control, security services, and many others are taxable. If your business provides taxable services, you need to collect sales tax on those services. If you purchase services for resale (for example, you subcontract a service that you then charge to your customer), you may be able to use the resale exemption.

Grocery Tax Rate

The state tax rate on groceries in Arkansas is 0.125%, which is one of the lowest grocery tax rates in the country. However, local sales taxes still apply at their full rates, so the total tax on groceries can still be several percent depending on location.

Arkansas Taxpayer Access Point (ATAP)

The ATAP portal is the state's online system for managing your sales tax account. You can file returns, make payments, view account history, and update business information through ATAP.

Manufacturing Exemptions

Arkansas offers exemptions for machinery and equipment used directly in manufacturing. This is separate from the resale exemption. Manufacturers purchasing raw materials for incorporation into a finished product use the resale exemption, while machinery and equipment purchases use the manufacturing exemption.

Audit Cycle and Record Retention

Arkansas typically audits businesses on a 3-year cycle. You should retain all sales tax records, including resale certificates received from customers and certificates you provided to suppliers, for at least three years after the return due date. Properly documented exemption certificates are your primary defense during an audit.

How Much Can You Save?

With a 6.5% state rate and combined rates above 11% in some areas, the resale exemption produces significant savings.

Your actual savings depend on your city and county's combined rate. Use our sales tax lookup tool to find the exact rate for your location.

Arkansas Resale Certificate FAQs

Q: Does the Arkansas resale certificate expire? A: Arkansas does not set a specific expiration date on Form ST391. The certificate is valid as long as your sales tax permit is active. Vendors may request updated certificates from time to time.

Q: Can I use the SST certificate instead of Form ST391? A: Yes. Form ST391 is essentially the SST certificate customized for Arkansas. The standard SST Certificate of Exemption is also accepted. Either format works.

Q: Is there a fee for an Arkansas sales tax permit? A: No. The Arkansas Department of Finance and Administration does not charge a fee for sales tax registration.

Q: Are services taxable in Arkansas? A: Many services are taxable in Arkansas, including repair, installation, cleaning, and other specified services. Check the DFA website for the complete list of taxable services.

Q: What if my supplier is in another state? A: If your out-of-state supplier does not collect Arkansas tax, you owe use tax on non-exempt purchases. Provide the supplier with your Form ST391 or SST certificate to document the resale exemption.

Get Started with Your Arkansas Resale Certificate

Arkansas's SST membership makes the resale certificate process straightforward, and the high combined rates make the tax savings substantial. Get your permit, complete Form ST391, and start buying inventory tax-free.

• Expert registration guidance
• Help completing Form ST391 or SST certificate
• Ongoing compliance support

Get Your Resale Certificate -->

For more details on Arkansas's requirements, visit our Arkansas state page.

Arkansas's 6.5% state rate and high local add-ons make proper use of the resale certificate essential for keeping your costs competitive. Register, document your exemptions, and keep your records in order.

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• What Is a Resale Certificate? - New to resale certificates? Start with the fundamentals.
• Resale Certificate for Amazon Sellers - Selling through Amazon in Arkansas? Here is what you need to know.
• Understanding Sales Tax Nexus - Learn when you are required to register in Arkansas and other states.