Resale Permit vs Resale License vs Seller's Permit: Are They the Same Thing?

Search for information about buying products tax-free for resale and you will run into a wall of overlapping terms. Resale certificate. Resale permit. Resale license. Seller's permit. Reseller permit. Reseller certificate. Sales tax exemption certificate. Vendor's license.

Are these all the same thing? Different things? State-specific variations?

The honest answer: it depends on the state. Some of these terms refer to the exact same document. Others describe related but distinct registrations. The confusion is real, and it costs business owners time and money when they search for the wrong thing or apply for the wrong document.

This guide sorts it all out. By the end, you will know exactly which term your state uses, what document you actually need, and how to get it.

The Two Documents That Matter

Before diving into terminology, understand that there are really only two core documents in the sales tax system for businesses that sell goods:

Document 1: Sales Tax Registration (the "collect" side) This is your authorization from the state to collect sales tax from customers. It goes by many names: seller's permit, sales tax permit, sales tax license, certificate of authority, vendor's license, or certificate of registration.

Document 2: Resale Certificate (the "buy" side) This is the form you give to your suppliers to buy inventory without paying sales tax. It goes by: resale certificate, resale permit, reseller's permit, exemption certificate, or resale license.

In many states, Document 2 is automatically generated when you obtain Document 1. In others, they are separate. And in a few states, the terminology blurs the line between the two.

State-by-State: What Your State Calls It

Here is every state with sales tax, showing the official name for both the sales tax registration and the resale exemption document.

No sales tax states: Alaska (no state sales tax), Delaware, Montana, New Hampshire, and Oregon do not issue these documents.

Breaking Down the Terms

"Resale Certificate"

This is the most widely used term nationally. A resale certificate is a form you complete and hand to your supplier. It states that you are purchasing goods for resale, provides your sales tax registration number, and authorizes the supplier to sell to you without charging sales tax.

You fill it out yourself. The state does not mail you a resale certificate. You get your registration number from the state, then you use that number on the resale certificate form whenever you make a qualifying purchase.

States that officially use this term: California, Connecticut, Florida, Hawaii, Idaho, Kentucky, Louisiana, Maryland, Massachusetts, Nebraska, Nevada, New Jersey, New York, Rhode Island, South Carolina, Tennessee, Texas, Vermont, Washington, and D.C.

"Seller's Permit"

A seller's permit is the sales tax registration itself. It is the state's authorization for you to collect sales tax. California and Idaho are the states most commonly associated with this term.

In California, people often say "I need a seller's permit" when what they actually need is both the seller's permit (to collect sales tax) and a resale certificate (to buy inventory tax-free). The two are connected but distinct. The seller's permit is your registration. The resale certificate is the form you give to vendors.

"Resale Permit"

This term is used colloquially but is not the official name in most states. People use "resale permit" interchangeably with "resale certificate." If you search Google for "resale permit," you are looking for the same document as a resale certificate.

"Resale License"

Similar to "resale permit," this is informal shorthand. No state officially calls its resale exemption document a "resale license." People use the term because it sounds like something you apply for and receive, which is how they think of it.

"Reseller Permit" / "Reseller Certificate"

More informal variations. These mean the same thing as a resale certificate. You are a reseller, and you need a certificate. Hence, reseller certificate.

"Sales Tax Permit" / "Sales Tax License"

These refer to the sales tax registration (Document 1). Texas calls it a Sales Tax Permit. Colorado, Michigan, Missouri, and Utah call it a Sales Tax License. Same concept, different label.

"Vendor's License"

Ohio's term for the sales tax registration. If you are an Ohio business, your vendor's license is what other states call a seller's permit or sales tax permit.

"Certificate of Authority"

New York and New Jersey use this term for the sales tax registration. It sounds official and distinct, but it serves the same function as a seller's permit in California or a sales tax permit in Texas.

"Exemption Certificate"

Several states (Arizona, Georgia, Indiana, Michigan, Pennsylvania, Virginia, Wisconsin) call the resale exemption document an "exemption certificate." This is a broader term because the same form is used for resale exemptions, nonprofit exemptions, government exemptions, and agricultural exemptions. You check the box for "resale" on the form.

Why the Terminology Matters

Searching for the Right Information

If you are a California business owner and you search for "resale license California," you might not find the official state resources because California does not use that term. Search for "seller's permit California" or "resale certificate California" and you will get the right results.

Communicating with Suppliers

When a supplier asks you for a "resale certificate," they mean the exemption form with your tax registration number. If you send them your seller's permit (the actual registration document), that is not what they need. They need the resale certificate form, filled out with your information and signed.

Applying for the Right Document

New business owners sometimes apply for a business license thinking it covers sales tax. It does not. Others apply for an EIN from the IRS and assume that covers state sales tax. It does not. You need to register specifically for a sales tax permit/seller's permit/certificate of authority at the state level.

Multi-State Compliance

If you sell in Texas, California, and New York, you are dealing with three different terms (Sales Tax Permit, Seller's Permit, Certificate of Authority) for the same thing. You are also dealing with three different resale certificate forms (Form 01-339, Form BOE-230, Form ST-120). Knowing the correct term for each state keeps you from filing the wrong forms.

Multi-State Certificates

Two multi-state forms simplify things for businesses operating across state lines:

Multistate Tax Commission (MTC) Uniform Sales and Use Tax Exemption/Resale Certificate

This is a single form accepted by approximately 38 states. Instead of filling out a different resale certificate form for each state, you complete one MTC certificate and check the relevant boxes.

States that accept it: Most states, with notable exceptions including California, Florida, Hawaii, Illinois, Maryland, Massachusetts, and Washington, D.C.

Streamlined Sales and Use Tax Agreement Certificate of Exemption

Used by 24 states that participate in the Streamlined Sales Tax (SST) program. Similar concept to the MTC form, but specific to SST member states.

Both forms are useful for businesses that buy from suppliers in multiple states. However, some states still insist on their own proprietary forms. Always confirm with your supplier which form they require.

How to Get the Right Document for Your State

Regardless of what your state calls it, the process follows the same pattern:

Step 1: Register for Sales Tax Collection

Apply for a seller's permit / sales tax permit / certificate of authority / vendor's license (whatever your state calls it) through your state's Department of Revenue.

This gives you a state sales tax identification number.

Step 2: Obtain or Complete the Resale Certificate Form

In most states, you download the blank resale certificate form from the state's website, fill it out with your business information and tax ID number, and provide it to your suppliers. The state does not pre-fill this for you.

Exceptions: Florida issues an Annual Resale Certificate for Transactions (Form DR-13) that is pre-printed with your information. You must renew it each January.

Step 3: Provide the Certificate to Suppliers

Give a completed copy to each vendor you buy from. Most suppliers keep it on file and apply the exemption to all future orders.

No matter what your state calls it, we handle the registration process for you. ResaleCertificate.org takes your business information, determines which state registrations and forms you need, and processes everything.

Get started with your application.

Frequently Asked Questions

Is a resale certificate the same as a seller's permit?

No. A seller's permit is your sales tax registration (permission to collect tax). A resale certificate is a form you give to suppliers (permission to buy without paying tax). You need the seller's permit first, then you use that information to fill out resale certificates.

Do I need a separate resale certificate for each state?

If you buy from suppliers in multiple states, you may need state-specific resale certificate forms. The MTC Uniform Certificate and SST Certificate cover many states with a single form, but some states require their own.

Can I use my California seller's permit number on a Texas resale certificate?

No. Each state's resale certificate requires that state's registration number. If you buy from a Texas supplier and want to claim a resale exemption, you need to be registered in Texas (or use a properly completed multi-state form with your home state registration, if the supplier accepts it).

What if I am in a state with no sales tax?

If your business is in Alaska, Delaware, Montana, New Hampshire, or Oregon, you do not have a home state sales tax registration. However, if you sell into states with sales tax and exceed economic nexus thresholds, you will need to register in those states. You would then use those state registrations on your resale certificates for purchasing.

Does a resale certificate expire?

It depends on the state. Most resale certificates do not expire as long as your underlying sales tax registration remains active. Florida's Annual Resale Certificate expires each December 31 and must be renewed. A few other states have periodic renewal requirements.

Is a business license the same as any of these?

No. A business license is issued by your city or county and authorizes you to operate a business. It has nothing to do with sales tax. You need both a business license and a sales tax registration to legally operate and collect sales tax.

Key Takeaways

1. "Resale permit," "resale license," "reseller permit," and "resale certificate" all refer to the same concept: a form that lets you buy goods tax-free for resale.
2. "Seller's permit," "sales tax permit," "certificate of authority," and "vendor's license" all refer to your sales tax registration: the state's authorization to collect sales tax.
3. You need the registration first, then you use that information on the resale certificate form.
4. Each state has its own terminology and its own forms. Use the correct ones for the state you are dealing with.
5. Multi-state certificates (MTC Uniform and SST) can simplify compliance across state lines, but not all states accept them.

Related Articles

• Resale Certificate vs Sales Tax Permit: What's the Difference?
• What Is a Resale Certificate? The Complete Guide
• Multi-State Resale Certificates: A Complete Guide