Texas Resale Certificate Verification Guide 2026

Texas is one of the largest sales tax states in the U.S., and the Texas Comptroller takes resale certificate compliance seriously. If you're accepting Texas resale certificates, verification isn't just recommended—it's essential protection against liability.

This guide shows you exactly how to verify Texas resale certificates in 2026.

Why Verification Matters in Texas

When you accept a Texas resale certificate, you're relying on the buyer's promise that they will:

• Actually resell the item
• Collect sales tax from their customer
• Have a valid Texas sales tax permit

If the certificate is invalid, the Texas Comptroller can hold you liable for:

• The uncollected sales tax
• Penalties up to 50% of the tax due
• Interest on the unpaid amount

Texas law protects sellers who verify: If you accept a certificate "in good faith," you're protected from liability even if it turns out to be fraudulent—but only if you can show reasonable due diligence.

Using Texas Comptroller's WebFile System

The Texas Comptroller of Public Accounts provides a free online verification system.

Step-by-Step: Verify a Texas Sales Tax Permit

Step 1: Access the Verification System

• Go to: https://comptroller.texas.gov/taxes/permit-license/
• Click "Verify a Sales Tax Permit"
• Or use WebFile: https://webfile.cpa.texas.gov

Step 2: Enter Permit Information

You'll need the Texas Sales Tax Permit Number from the certificate.

Format: 12345678901 (11 digits) or 12-34567890 (with dash)

Step 3: Review the Verification Results

The system will display:

Step 4: Save Verification Evidence

• Take a screenshot or print the results page
• Note the date you verified
• Store with the resale certificate
• Keep for at least 4 years

What Details Are Shown?

The verification system typically displays:

• Business legal name
• Business address
• Permit status (active/inactive)
• Issue date
• Business type

Important: Business name must substantially match the name on the certificate you received.

Texas Certificate Requirements

Required Form: Texas Form 01-339

Texas has a specific resale certificate form: Form 01-339 (Texas Sales and Use Tax Resale Certificate).

You can also accept:

• Out-of-state resale certificates (Texas is reciprocal)
• Blanket certificates for ongoing purchases
• Digital/electronic certificates

What Must Be on the Certificate

A valid Texas resale certificate must include:

• Seller's (buyer's) name and address
• Texas sales tax permit number (11 digits)
• Description of items being purchased
• Statement that items are for resale
• Signature of purchaser or authorized representative
• Date signed

Optional But Recommended

• Federal EIN or SSN (some suppliers require)
• Business type (retail, wholesale, etc.)
• Description of business activity

Certificate Validity Period

Texas resale certificates don't expire unless:

• The permit is cancelled
• Business structure changes significantly
• Business address changes

Best practice: Re-verify annually for regular customers.

Common Verification Problems

Problem #1: Out-of-State Permit

Scenario: Buyer provides their home state certificate, not a Texas permit.

Texas rule: Texas does accept out-of-state resale certificates if:

• The buyer has a valid permit in their home state
• The buyer's state has reciprocity with Texas
• The certificate is completed properly

What to do:

• Verify the out-of-state permit with that state's tax agency
• Confirm their state accepts Texas certificates (reciprocity)
• Keep documentation of verification

Note: Most states are reciprocal with Texas. California, Florida, and a few others require Texas buyers to register in their state.

Problem #2: Permit Number Format Issues

Texas permit numbers should be 11 digits.

Common formats:

• 12345678901 (no dashes)
• 12-3456789-01 (with dashes)
• Sometimes displayed with spaces

If format looks wrong:

• Try entering with and without dashes
• Confirm with buyer they copied number correctly
• Ask for a screenshot of their permit

Problem #3: Name Mismatch

The permit verification shows a different business name than on the certificate.

Common reasons:

• DBA (Doing Business As) name used
• LLC vs personal name confusion
• Merged or acquired business
• Partnership vs individual names

Solution: Request documentation showing the connection:

• DBA filing with county
• Certificate of formation or LLC operating agreement
• Letter from buyer explaining the relationship

Problem #4: Delinquent Status

Permit shows "active" but with delinquency notes.

What this means:

• Business has unfiled returns or unpaid taxes
• Permit technically still valid
• Could be suspended soon

Your options:

• Accept the certificate (it's technically valid)
• Require payment of sales tax (safer approach)
• Contact buyer and request they resolve delinquency first

Texas law: You're protected if the permit was valid at the time of sale, even if later suspended.

Problem #5: Blanket Certificate Concerns

Buyer wants to use one certificate for all future purchases.

Texas allows this. Blanket certificates are valid for ongoing business relationships.

Requirements for blanket certificates:

• Must state it covers all future purchases
• Should specify types of goods covered
• Verify permit at least annually
• Get new certificate if business changes

Texas Record Keeping Rules

How Long to Keep Records

Texas requires 4 years minimum. The statute of limitations for sales tax audits is 4 years, but can extend to unlimited years if fraud is suspected.

Best practice: Keep records for at least 4 years, preferably 7 years for complex transactions.

What Records to Maintain

For each certificate, keep:

Digital vs Physical Records

Texas accepts both digital and physical records.

Digital best practices:

• PDF scans at minimum 300 DPI
• Organized by customer or date
• Backed up to cloud storage
• Searchable by permit number or business name

Physical best practices:

• Store in fireproof safe or off-site storage
• Organized alphabetically or by permit number
• Protected from water damage and deterioration

Creating a Verification Log

Track all verifications in a central log:

Date       | Permit #      | Business Name        | Status  | Verified By | Re-verify Date
-----------|---------------|----------------------|---------|-------------|---------------
1/28/2026  | 12345678901  | ABC Wholesale Inc.   | Active  | Sarah M.    | 1/28/2027
1/28/2026  | 98765432109  | XYZ Distributors     | Active  | Sarah M.    | 1/28/2027

This log serves as quick reference and audit documentation.

Special Situations

Manufacturing & Production

If you sell raw materials or components to manufacturers:

They need a Texas resale certificate if:

• The material becomes part of the finished product
• The finished product is sold (not used by the manufacturer)

Verify just like retail resale certificates.

Drop Shipping

In drop-ship scenarios:

• Your supplier needs your resale certificate
• You need resale certificates from your customers
• Verify certificates at each level of the transaction

Sales to Other States

If a Texas business buys from you for resale in another state:

• You can accept their Texas certificate
• Or accept their destination state certificate
• Verify whichever certificate they provide

Protecting Yourself During Audits

What Auditors Look For

During a sales tax audit, the Texas Comptroller will:

• Request all resale certificates for tax-exempt sales
• Verify you checked permit validity
• Confirm certificates were complete and signed
• Test a sample of permits for current validity

How Verification Protects You

With verification records:

• You show good faith acceptance
• Even if permit later found invalid, you're protected
• Shifts burden to the buyer

Without verification records:

• You must prove the buyer had a valid permit
• Comptroller may assess tax, penalty, and interest on all exempt sales
• Heavy audit liability

Audit Red Flags to Avoid

• Accepting unsigned certificates
• Missing permit numbers
• No verification records
• Certificates dated after the sale
• Obviously fraudulent certificates (wrong format, fake numbers)

Quick Verification Checklist

Before accepting any Texas resale certificate:

• Confirm certificate has all required fields
• Verify permit number format (11 digits)
• Check permit status via Comptroller website
• Confirm business name substantially matches
• Save screenshot or printout of verification
• Note verification date in your records
• File with customer account or invoice
• Set reminder to re-verify in 12 months

Get Your Texas Resale Certificate

Need a Texas sales tax permit for your business? We handle the entire registration process:

• Fast 24-48 hour processing
• Complete application assistance
• All state requirements handled
• Expert support if issues arise

Start your Texas resale certificate application today and join thousands of Texas businesses we've helped get properly registered.

Remember: Taking 2 minutes to verify can save you thousands in audit liability. Make verification a standard part of your sales process.