Resale Certificates for Interior Designers: Buy Furniture and Decor Wholesale Tax-Free
Interior designers routinely purchase $20,000 to $100,000 or more in furniture, fabrics, lighting, and fixtures for a single project. Without a resale certificate, sales tax on those purchases comes straight out of your margin. On a $50,000 project in Texas (8.25% combined rate), that is $4,125 in tax you should not be paying.
A resale certificate changes the math entirely. It lets you buy products tax-free when you are purchasing them for resale to your clients, and it opens the door to "to the trade" pricing from hundreds of manufacturers and showrooms.
Interior Design Wholesale
Why Interior Designers Qualify for Resale Certificates
The key question: are you a reseller or a service provider? The answer determines your tax treatment.
When you purchase a sofa from a manufacturer and sell it to your client (with your markup), you are acting as a retailer. The product changes hands. You bought it to resell it. That transaction qualifies for a resale certificate, regardless of whether you also charge a design fee.
This applies to all tangible goods you procure and resell to clients:
- Furniture (sofas, tables, beds, dining chairs)
- Fabrics and textiles (drapery, upholstery fabric, rugs)
- Lighting fixtures and lamps
- Plumbing fixtures and hardware
- Tile, stone, and flooring materials
- Decorative accessories, art, and mirrors
- Window treatments and blinds
- Wallpaper and wall coverings
The Designer vs. Retailer Distinction
This is where it gets nuanced. Most states draw a clear line between the products you resell and the design services you provide.
Products You Resell (Tax-Free to Purchase)
Any tangible product you buy with the intent to resell to your client qualifies. You purchase it tax-free, then collect sales tax from your client when you sell it to them.
Design Services (Not Resale)
Your design fees, consultation charges, and hourly rates are service income. In most states, services are not subject to sales tax, though a few states do tax design services. Check your state's rules.
Items for Your Own Use (Taxable)
Anything you buy for your own office or studio does not qualify for the resale exemption:
| Purchase Type | Tax-Free With Certificate? |
|---|---|
| Furniture for a client project | Yes |
| Fabric samples you keep in your library | No |
| Your office desk and chairs | No |
| A lamp you sell to the client | Yes |
| CAD software for your practice | No |
| Presentation boards and renderings | No |
How to Get Your Resale Certificate
The process is straightforward. You register for a sales tax permit with your state's tax authority, and the permit (or associated certificate) authorizes you to make tax-exempt purchases for resale.
If you operate in multiple states (say you are based in California but purchasing from a North Carolina showroom for a client in Nevada), you may need certificates for each state where you are buying or selling.
Apply for Your Resale Certificate
Processing times vary. Some states issue permits the same day online. Others take two to four weeks.
Setting Up "To the Trade" Accounts
The interior design industry operates on a "to the trade" system. Manufacturers sell exclusively through designers and architects, not directly to consumers. Access to these showrooms and price lists requires two things: proof that you are a working design professional and a valid resale certificate.
Major Trade Resources and How to Apply
RH (Restoration Hardware) Trade Program Apply at rh.com/trade with your business license, resale certificate, and a portfolio or project list. Trade members receive 25% off retail pricing on RH products, plus access to the RH trade portal for custom orders.
Kravet / Lee Jofa / Brunschwig & Fils The Kravet family of brands sells exclusively to the trade. Open an account through your local Kravet showroom or online at kravet.com. You will need your resale certificate, business license, and proof of professional status (ASID membership, interior design degree, or a portfolio of completed projects).
Holly Hunt Holly Hunt products are available only through Holly Hunt showrooms. Apply in person or through their website. Expect to provide your certificate, professional credentials, and references.
Visual Comfort & Co. One of the largest trade lighting manufacturers. Apply for a trade account at visualcomfort.com. Resale certificate required. Trade pricing is typically 40 to 50% off list.
Schumacher Historic fabric and wallpaper house. Trade accounts available through their showroom network. Requires resale certificate and professional credentials.
Currey & Company Lighting and furniture manufacturer selling to the trade. Apply online with your resale certificate and business details.
Trade Showrooms and Design Centers
Physical design centers house dozens of trade showrooms under one roof. Access typically requires trade credentials and a resale certificate:
- Pacific Design Center (West Hollywood, CA)
- Decoration & Design Building (New York, NY)
- Design Center at the Merchandise Mart (Chicago, IL)
- AmericasMart (Atlanta, GA)
- Dallas Market Center (Dallas, TX)
- High Point Market (High Point, NC, twice yearly)
At these locations, you present your certificate when opening accounts with individual showrooms. Most will keep it on file for future orders.
Online Trade Platforms
Several platforms have streamlined the trade ordering process:
| Platform | What They Offer |
|---|---|
| 1stDibs Trade | Vintage, antique, and contemporary furnishings at trade pricing |
| Chairish Trade | Trade discounts on curated vintage and new pieces |
| Perigold (Wayfair Professional) | High-end furniture with trade pricing |
| Design Within Reach Contract | Modern furniture for trade projects |
All require a resale certificate and professional verification.
How to Bill Your Clients
The billing model you choose affects how sales tax works on your projects. There are three common approaches.
Cost-Plus (Markup) Model
You buy products at trade pricing and resell them to your client with a markup, typically 20 to 35%.
Example:
- Trade cost of a sofa: $3,200
- Your markup (30%): $960
- Client pays: $4,160 plus applicable sales tax
In this model, you are clearly acting as a reseller. You buy tax-free with your certificate and collect sales tax from the client on the $4,160 selling price.
Flat Design Fee Model
You charge a flat design fee for the project, and the client purchases products directly from vendors (or you pass through the cost without markup).
Tax implications:
- Your design fee may or may not be taxable (depends on your state)
- If the client buys products directly, they pay tax to the vendor
- If you purchase and pass through at cost, you may still be considered a reseller in some states
Hybrid Model
Many designers combine approaches: a design fee for creative services, plus markup on products.
Tax treatment:
- Design fee: follows your state's rules on service taxation
- Product resale: you buy tax-free, collect tax from client
The cost-plus model is the most tax-efficient and the clearest from a compliance standpoint. It makes your role as a reseller unambiguous.
State-by-State Considerations
Not every state treats interior designers the same way. Here are the key variations.
States That Clearly Treat Designers as Resellers
Most states, including California, Texas, Florida, New York, and Illinois, allow interior designers to use resale certificates for products they purchase and resell to clients. The designer acts as a retailer of tangible goods.
States With Special Rules
Connecticut: Charges sales tax on most interior design services, not just the products. The total project cost (services plus products) may be taxable.
New Mexico: Taxes gross receipts broadly, including many services. Interior designers may owe gross receipts tax on their service fees.
Hawaii: Has a General Excise Tax (GET) rather than a traditional sales tax. The GET applies to nearly all business activity, so both your service income and product sales are subject to the tax.
Washington: No state income tax but does tax some services. Review the Department of Revenue's guidance on design services specifically.
The Key Principle
In every state, the core question is the same: are you buying products to resell them, or are you buying products for your own use? If you purchase a dining table and transfer ownership to your client (for a price), you are a reseller and your purchase qualifies for tax exemption.
Real Savings Breakdown
Here is what a resale certificate saves on a typical residential project:
| Item | Trade Cost | Retail Value |
|---|---|---|
| Living room furniture | $18,000 | $28,000 |
| Dining room set | $8,500 | $13,000 |
| Bedroom furnishings | $7,200 | $11,000 |
| Lighting fixtures | $6,800 | $10,500 |
| Drapery and soft goods | $5,500 | $8,500 |
| Accessories and art | $4,000 | $6,000 |
| Total | $50,000 | $77,000 |
Sales tax at 8% on $50,000: $4,000 saved by buying tax-free.
Over a year of projects, a busy designer purchasing $200,000 to $500,000 in goods could save $16,000 to $40,000 in sales tax. That money goes directly to your bottom line (or your client's, depending on your billing model).
Record Keeping for Designers
Interior design projects generate a lot of paperwork. Maintaining clean records protects you during a sales tax audit.
What to Keep on File
- Resale certificates provided to each vendor (keep copies)
- Client contracts specifying how products are billed (cost-plus, flat fee, etc.)
- Invoices from vendors showing tax-exempt purchases
- Invoices to clients showing products sold and sales tax collected
- Project files documenting which items were purchased for which client
Common Audit Triggers
State auditors look for patterns in design businesses:
- Large tax-exempt purchases with no corresponding taxable sales to clients
- Using the resale certificate for personal purchases (your home renovation is not exempt)
- Buying sample materials tax-free that never get resold
- Failing to collect sales tax from clients when reselling goods
Keep your business purchases separate from personal purchases. If you buy a rug for your own living room, pay the tax.
Getting Started: Step by Step
- Register your business with your state and obtain a business license.
- Apply for your resale certificate through your state tax authority or through our application service.
- Open trade accounts with manufacturers and showrooms. Provide your certificate during the application process.
- Update your client contracts to clearly specify how products are purchased and billed.
- Set up your sales tax collection so you are charging clients the correct rate when you resell products.
- File your sales tax returns on schedule, reporting the sales tax you collected from clients.
Your resale certificate is the foundation of your purchasing power as a designer. It is what separates buying at retail from buying at trade.
Apply for Your Resale Certificate
Frequently Asked Questions
Can I use my resale certificate at retail stores like West Elm or Pottery Barn?
You can use it at any store for products you intend to resell. However, most retail stores are not set up to process resale certificates at the register. You may need to speak to a manager or use their trade/contract sales program.
What if I buy something tax-free but the client cancels the project?
If you keep the product for personal use, you owe use tax on it. If you return it to the vendor, no tax is due. If you sell it to a different client, you are still operating as a reseller and no adjustment is needed.
Do I need to be a licensed or certified designer?
A resale certificate does not require a design license. It requires a business that buys and resells tangible goods. However, many trade showrooms require professional credentials (ASID, IIDA, or equivalent) to open accounts.