North Dakota Resale Certificate Guide 2026: How to Get Yours

North Dakota has a resource-rich economy driven by energy, agriculture, manufacturing, and technology. The state imposes a 5% state sales tax rate, with local additions that can bring the combined rate up to 8%. North Dakota is a Streamlined Sales Tax (SST) member state with a relatively straightforward tax system. If you buy goods for resale in North Dakota, this guide walks you through the certificate process for 2026.

North Dakota Sales Tax Basics

State Rate

The North Dakota state sales tax rate is 5%. Cities can impose local sales taxes of up to 3%, bringing the combined rate to a maximum of about 8% in some jurisdictions. Fargo has a combined rate around 7.5%, Bismarck is around 7.5%, and smaller communities tend to have lower combined rates.

Use Tax

North Dakota imposes a use tax at the same rate as the sales tax on purchases from out-of-state vendors when the seller does not collect North Dakota sales tax. Items purchased for resale are exempt from use tax if documented with a valid exemption certificate.

What Is Taxable in North Dakota?

North Dakota taxes most tangible personal property and some services:

• Most physical goods are taxable
• Groceries (unprepared food) are exempt
• Prescription drugs are exempt
• Clothing is fully taxable
• Certain services are taxable, including repair, installation, and maintenance services
• Digital products are generally not taxable in North Dakota (though delivered electronically is evolving)
• Farm machinery and equipment used directly in agriculture are exempt

What Form Do You Need?

North Dakota uses Form 21919, the Streamlined Sales Tax Certificate of Exemption. As an SST member, this is the standard certificate format for documenting resale exemptions.

About Form 21919

Form 21919 follows the SST certificate format and serves as a multi-purpose exemption certificate. When claiming a resale exemption, select the resale reason code on the form.

Key fields include:

• Purchaser's name, address, and phone number
• North Dakota 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 21919 is available as a free download from the North Dakota Office of State Tax Commissioner website at tax.nd.gov. You can also download the standard SST Certificate of Exemption directly from the SST Governing Board website.

Who Needs a North Dakota Resale Certificate?

Any business purchasing tangible personal property for resale needs a North Dakota resale certificate. This includes:

Retailers buying inventory to sell through physical stores, online platforms, craft shows, farmers markets, or any other channel.

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

Online sellers registered in North Dakota who buy inventory for resale through Amazon, eBay, Etsy, Shopify, or other marketplaces.

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

Restaurants and food businesses buying food ingredients that will be prepared and sold as meals.

Who Does NOT Qualify

• Consumers buying for personal use
• Businesses purchasing supplies, furniture, or equipment for their own operations
• Contractors buying materials that will be installed into real property

How to Apply for a North Dakota Resale Certificate

Step 1: Register for a North Dakota Sales Tax Permit

You need an active North Dakota sales tax permit before you can issue a valid Form 21919. The North Dakota Office of State Tax Commissioner 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
• Estimated monthly taxable sales

Registration is free. Apply online through the North Dakota Taxpayer Access Point (TAP) portal.

Processing time: Online applications are typically processed within 5 to 7 business days.

Step 2: Complete Form 21919

Download the form from the Tax Commissioner's website. Fill in your business details, select the resale exemption, enter your North Dakota 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 21919 to each vendor from whom you want to buy tax-free. The vendor retains 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

North Dakota is a member of the Streamlined Sales Tax (SST) agreement. The SST framework simplifies multi-state sales tax compliance for businesses that sell in multiple states.

SST Membership

As an SST member, North Dakota accepts the SST Certificate of Exemption from buyers in any other SST member state. If you already use the SST certificate in another state, the same format works in North Dakota.

This is particularly helpful for businesses that purchase inventory from vendors in multiple states. One certificate format covers all SST member states.

Out-of-State Sellers

North Dakota's economic nexus threshold is $100,000 in sales to North Dakota customers in the current or preceding calendar year. If you meet this threshold, you must register for a North Dakota sales tax permit and collect tax on sales to North Dakota customers.

Marketplace Facilitator Rules

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

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

Common Mistakes with North Dakota Resale Certificates

Mistake 1: Using the Certificate for Personal or Business-Use Purchases

Buying supplies, equipment, or other items for personal or internal business use with a resale certificate is the most common violation. North Dakota auditors compare purchase records with resale inventory to identify mismatches.

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

If you buy from an out-of-state vendor who does not collect North Dakota tax, you owe use tax on non-exempt purchases. This is especially common with online purchases from vendors without North Dakota nexus.

Mistake 3: Leaving Required Fields Blank

Form 21919 requires all key fields to be completed, including the permit number, exemption type, and description of goods. A certificate with missing fields is considered incomplete and may not be accepted by the seller or hold up during an audit.

Mistake 4: Forgetting to Update Certificates After Business Changes

If your business name, entity type, or sales tax permit number changes, you need to issue updated certificates to all your vendors. Outdated certificates create compliance gaps during audits.

North Dakota-Specific Rules You Should Know

Energy Industry Considerations

North Dakota's energy sector (oil, gas, and wind) is a major part of the economy. Businesses in the energy industry should understand that equipment and supplies used in oil extraction and production may qualify for specific exemptions under North Dakota law. These are separate from the resale exemption and have their own documentation requirements.

Agricultural Exemptions

North Dakota provides broad exemptions for agricultural inputs, including farm machinery, seed, feed, and chemicals used in farming. These exemptions are separate from the resale exemption. Farmers who also sell products at retail may use both the agricultural exemption and the resale exemption depending on the purchase.

Relatively Simple System

Compared to many states, North Dakota has a relatively straightforward sales tax system. The state has fewer taxable service categories, a moderate number of local jurisdictions, and a clear exemption certificate process. This makes compliance easier for businesses that also operate in more complex states.

Taxpayer Access Point (TAP)

The TAP portal is North Dakota's online system for managing your sales tax account. You can file returns, make payments, update business information, and check your permit status. All North Dakota sales tax permit holders should have an active TAP account.

Audit Practices

North Dakota typically audits businesses covering a 3-year period. Auditors review sales records, purchase records, and exemption certificates. Keep all Form 21919 copies and supporting documentation for at least three years after the return due date.

How Much Can You Save?

With a 5% state rate and combined rates up to 8%, the resale exemption provides meaningful savings.

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

North Dakota Resale Certificate FAQs

Q: Does the North Dakota resale certificate expire? A: North Dakota does not set a specific expiration date on Form 21919. The certificate is valid as long as your sales tax permit is active. Vendors may request updated certificates periodically.

Q: Can I use a generic SST certificate instead of Form 21919? A: Yes. Form 21919 is North Dakota's version of the SST certificate. The standard SST Certificate of Exemption is also accepted.

Q: Is there a fee for a North Dakota sales tax permit? A: No. North Dakota does not charge a fee for sales tax registration.

Q: Are groceries taxable in North Dakota? A: No. Unprepared food (groceries) is exempt from North Dakota sales tax. Prepared food and restaurant meals are taxable.

Q: What is the economic nexus threshold for North Dakota? A: North Dakota requires out-of-state sellers with $100,000 or more in sales to North Dakota customers to register and collect sales tax.

Get Started with Your North Dakota Resale Certificate

North Dakota's SST membership and straightforward tax system make the resale certificate process one of the simpler ones to complete. Get your permit, fill out Form 21919, and start saving on every inventory purchase.

• Expert registration guidance
• Help completing Form 21919 or SST certificate
• Ongoing compliance support

Get Your Resale Certificate -->

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

North Dakota's clean tax structure and SST membership make compliance manageable. Register for your sales tax permit, document your exemptions properly, and keep organized records.

Related Articles

• What Is a Resale Certificate? - New to resale certificates? Start with the fundamentals.
• Resale Certificate for Etsy Sellers - Online sellers in North Dakota should understand their obligations.
• Understanding Sales Tax Nexus - Learn when you are required to register in North Dakota and other states.