Resale Certificates for Tattoo Shops: Buy Ink and Supplies Tax-Free

Running a tattoo shop means buying a constant stream of ink, needles, tubes, grips, stencil supplies, and aftercare products. A busy shop can spend $2,000 to $5,000 per month on consumable supplies alone. Without a resale certificate, you are paying sales tax on all of those purchases, and that tax comes directly out of your margins.

A resale certificate lets you buy supplies that become part of the service you sell to clients without paying sales tax at the point of purchase. For tattoo shops, the rules around what qualifies can be nuanced, so understanding the details matters.

How Sales Tax Works for Tattoo Shops

The tax treatment of tattoo services varies by state, and this directly affects how your resale certificate works.

States That Tax Tattoo Services

In many states, tattooing is classified as a taxable service. This means you charge sales tax to your clients on the full price of the tattoo. In these states, supplies that you consume during the service (ink, needles, stencil paper) are generally considered consumed by you in performing the service, not resold to the customer. This means the resale exemption may not apply to those items.

States that tax tattoo services include Texas, New York, and Ohio, among others.

States That Do Not Tax Services

In states where tattoo services are not taxable (the service itself is exempt from sales tax), you generally cannot charge tax to your clients. In these states, the supplies you use become trickier. Since there is no taxable sale, there may be no resale exemption to claim.

The Key Distinction: Items Transferred vs. Items Consumed

Regardless of how your state taxes services, the critical question is whether an item is transferred to the customer or consumed by the service provider.

Items typically transferred to the customer (may qualify for resale exemption):

• Aftercare products (ointments, bandages, wraps) given to the client
• Jewelry inserted during a piercing
• Touch-up kits provided to clients
• Printed aftercare instruction cards

Items typically consumed by the provider (usually taxable to you):

• Ink deposited into the skin (consumed during the process)
• Needles and cartridges (disposed of after use)
• Stencil transfer paper
• Disposable gloves and barriers
• Green soap and cleaning solutions

This distinction matters. In most states, items you use up during the service are considered consumed by your business, which means the resale exemption does not apply. However, items you hand to the client as part of the transaction may qualify.

State-Specific Variations

Some states take a more generous approach. For example, California considers tattoo artists as retailers of the tangible materials transferred to the client (the ink that becomes part of the tattoo) and allows the resale exemption on those materials. Check your specific state's rules, as this area varies significantly.

What You Can Buy Tax-Free

Despite the nuances around service-consumed items, tattoo shops have several categories of purchases that clearly qualify for the resale exemption.

Resale-Exempt Purchases

Purchases That Are Generally Taxable (Not Exempt)

The Gray Area

Tattoo ink, needles, and stencil supplies fall into a gray area that depends on your state. In states where ink is considered transferred to the client (it literally goes into the client's skin), these purchases may qualify for the resale exemption. In states where the service is the primary transaction and the ink is incidental, the exemption may not apply.

Consult your state's tax authority or a sales tax professional to determine the correct treatment for your specific location. Getting this wrong in either direction creates problems: overclaiming exemptions triggers audit penalties, while underclaiming costs you money.

Building a Retail Revenue Stream

Many successful tattoo shops generate additional revenue by selling retail products. These sales are clear-cut taxable retail transactions, and the inventory you buy for this purpose clearly qualifies for the resale exemption.

Retail Products to Consider

• Aftercare products: Tattoo-specific ointments, moisturizers, sunscreens
• Piercing jewelry: A wide selection of body jewelry in different metals and styles
• Branded merchandise: Shop t-shirts, hoodies, hats, stickers, patches
• Art prints: Original artwork by your artists, sold as prints
• Flash art: Traditional flash sheets sold as art pieces
• Tattoo-themed accessories: Temporary tattoos, books, magazines

A retail section adds revenue, gives clients something to buy on impulse, and creates another reason for the resale certificate. Every dollar of retail inventory you purchase is clearly exempt.

Example: A shop that sells $1,500 per month in aftercare products, jewelry, and merch saves $105 per month (at 7% tax), or $1,260 per year, just on the retail side.

Setting Up Your Resale Certificate

Step 1: Register for a Sales Tax Permit

You need a sales tax permit (or seller's permit, depending on your state) before you can obtain a resale certificate. Apply through your state's tax authority.

You will need:

• Federal EIN or SSN
• Business name and DBA
• Business address
• Entity type (LLC, sole proprietorship, corporation)
• Description of your business (tattoo parlor, body art studio)

Step 2: Complete Your State's Exemption Certificate

Download your state's resale certificate form, fill it out, and enter your sales tax permit number. Describe the types of products you purchase for resale.

Step 3: Give Certificates to Your Suppliers

Provide a completed certificate to each supplier you buy from. Major tattoo supply companies are familiar with resale certificates and will have a process for accepting them.

Common tattoo supply companies that accept resale certificates:

• Kingpin Tattoo Supply
• Painful Pleasures
• Body Art Forms
• Worldwide Tattoo Supply
• TATSoul

Most of these companies have an online account setup process where you upload your resale certificate during registration.

Apply for Your Resale Certificate

Collecting Sales Tax From Clients

Your resale certificate exempts your purchases, not your sales. You are responsible for collecting and remitting sales tax on every taxable sale to your clients.

What to Tax

In states where tattoo services are taxable, you collect sales tax on the full price of the tattoo (including any design fees that are part of the service). Retail product sales are taxable in all states that have a sales tax.

What About Tips?

Tips are generally not subject to sales tax. They are considered voluntary payments and are not part of the taxable transaction. However, mandatory service charges or "gratuities" that are required (not optional) may be taxable in some states.

Record Keeping

Track all sales and tax collected. Separate your records into:

• Tattoo service revenue (and tax collected, if applicable)
• Piercing service revenue
• Retail product sales (and tax collected)
• Tips received (not taxable)

Common Mistakes Tattoo Shops Make

Claiming Resale on Everything

Not everything in your shop qualifies. Equipment, furniture, cleaning supplies, and many consumable supplies are for business use. Using your resale certificate for these items is a violation.

Not Collecting Tax on Retail Sales

If you sell aftercare products, jewelry, or merchandise, you must collect sales tax on those sales. Buying the inventory tax-free and then not collecting tax from customers means you owe the tax yourself.

Ignoring State-Specific Rules

The tax treatment of tattoo services and supplies varies dramatically by state. What works in California may not work in Texas. Always verify with your state's tax authority.

Not Keeping Organized Records

Tattoo shops often have a mix of service revenue and retail sales, with different tax treatments for each. Keep clear, organized records that separate these categories. Auditors will want to see this breakdown.

Real Savings by Shop Size

These savings assume the resale exemption applies to the qualifying portion of your purchases. Your actual savings depend on your state's rules and what percentage of your purchases qualify.

Get Your Resale Certificate Today

Stop paying sales tax on inventory and supplies that qualify for the exemption. A resale certificate is the foundation for buying wholesale, accessing trade-only suppliers, and keeping your costs down.

Apply for Your Resale Certificate

Related Articles

• What Can You Buy Tax-Free With a Resale Certificate? - Full breakdown of what qualifies and what does not.
• Side Hustle Sales Tax Guide - Part-time tattoo artists working from private studios should understand their obligations.
• Resale Certificate vs. Sales Tax Permit - Understand the difference between these two documents.