Walmart Marketplace Sellers: Do You Need a Resale Certificate?
Walmart Marketplace is the second-largest online marketplace in the United States, trailing only Amazon. With over 150,000 active sellers and growing, it has become a serious revenue channel for e-commerce businesses of all sizes. But selling on Walmart comes with the same sales tax obligations that catch sellers off guard on every other platform.
The short answer: yes, you almost certainly need a resale certificate. This guide explains exactly why, how to use it, and how to take advantage of Walmart's own tax exemption tools.
Walmart Marketplace
Why Walmart Marketplace Sellers Need a Resale Certificate
Every product you buy to resell on Walmart Marketplace is a tax-exempt purchase, but only if you have the paperwork to prove it. Without a resale certificate, your suppliers charge you sales tax on every order. That cost adds up fast.
The Math on Lost Margins
Say you source $8,000 per month in inventory from a wholesaler in a state with 7.5% sales tax.
| Scenario | Monthly Cost | Annual Cost |
|---|---|---|
| Without resale certificate | $600 in sales tax | $7,200 |
| With resale certificate | $0 in sales tax | $0 |
That $7,200 is pure margin you are giving away. For a seller running on 15-20% net margins, that can represent the difference between a profitable year and a break-even one.
What a Resale Certificate Actually Does
A resale certificate tells your supplier: "I am buying this product to resell it, not to consume it." Because the end customer will pay sales tax when they purchase from you (or Walmart will collect it on your behalf), taxing the transaction twice would be double taxation. The certificate prevents that.
You can use it with:
- Wholesale distributors and manufacturers
- Liquidation companies
- Retail stores (for arbitrage purchases)
- Online suppliers that accept exemption documents
- Trade show vendors
How Walmart Handles Sales Tax Collection
Walmart as Marketplace Facilitator
Walmart operates as a marketplace facilitator in all states that have marketplace facilitator laws. This means Walmart calculates, collects, and remits sales tax on your behalf for orders placed through Walmart.com.
| Responsibility | Who Handles It |
|---|---|
| Calculating tax rate | Walmart |
| Collecting from buyer | Walmart |
| Remitting to state | Walmart |
| Filing marketplace returns | Walmart |
This is a significant advantage. You do not need to worry about collecting sales tax on individual Walmart Marketplace orders.
What You Are Still Responsible For
Walmart handling collection does not eliminate all your obligations. You still need to:
- Register for a sales tax permit in your home state
- Obtain a resale certificate for tax-free inventory purchasing
- File state returns where required (some states require $0 filings)
- Track nexus across all your sales channels, not just Walmart
- Monitor economic nexus thresholds as your business grows
Walmart Fulfillment Services (WFS) and Nexus
How WFS Creates Tax Nexus
Walmart Fulfillment Services works like Amazon's FBA. You ship your inventory to Walmart's fulfillment centers, and they pick, pack, and ship orders for you. The catch: storing inventory in a state creates physical nexus there.
Walmart operates fulfillment centers in multiple states, including:
- Arkansas (Walmart's home base)
- California
- Illinois
- Indiana
- Pennsylvania
- Texas
- Florida
- Georgia
When your inventory sits in a Walmart warehouse in Indiana, you now have physical presence in Indiana. That means Indiana can require you to register, collect, and remit sales tax on sales shipped to Indiana customers, even on other platforms.
WFS vs. Seller-Fulfilled Orders
| Factor | WFS (Walmart Fulfills) | Seller-Fulfilled |
|---|---|---|
| Physical nexus | Multiple states (warehouse locations) | Typically home state only |
| Shipping speed | Faster, 2-day eligible | Depends on your setup |
| Tax complexity | Higher | Lower |
| Buy Box advantage | Significant | Moderate |
If you use WFS, you should review which states your inventory is stored in and register for sales tax permits accordingly. Walmart does not always disclose exact warehouse placements in advance, so check your Seller Center dashboard regularly.
Economic Nexus Still Applies
Even without WFS, you can trigger economic nexus. Most states set the threshold at $100,000 in sales or 200 transactions. If your combined sales across all channels (Walmart, Amazon, Shopify, eBay) exceed these thresholds in a given state, you have an obligation to register there.
How to Use Your Resale Certificate With Suppliers
Providing Your Certificate to Wholesalers
Most wholesale suppliers require a resale certificate before they will sell to you at all. The process is straightforward:
- When opening a new account, the supplier's application will include a field for your resale certificate number or ask you to upload a copy.
- For existing accounts, contact the supplier's accounting or compliance department and submit your certificate.
- The supplier keeps it on file and stops charging you sales tax on future orders.
Using Your Certificate at Retail Stores
If you do retail arbitrage at physical Walmart stores (buying clearance items to resell on Walmart Marketplace or other channels), you can present your resale certificate at checkout.
How it works at Walmart retail locations:
- Bring your certificate to the Customer Service desk
- The associate can process a tax-exempt transaction
- Some locations are more experienced with this than others; ask for a manager if needed
- For large purchases, call the store ahead of time
States That Require Their Own Certificate
Your home state certificate works in most states, but some states require you to have an in-state registration:
- California
- Florida
- Hawaii
- Illinois
- Louisiana
- Maryland
- Massachusetts
- Washington
- Washington D.C.
If you buy significant inventory from suppliers in these states, register there first.
Walmart's Tax Exemption Program (WTEP)
What It Is
Walmart has a Tax Exemption Program that allows qualified businesses and organizations to make tax-exempt purchases on Walmart.com and in Walmart stores. This is Walmart's equivalent of Amazon's ATEP (Amazon Tax Exemption Program).
How to Enroll
- Visit Walmart's Tax Exemption Program page (accessible through your Walmart.com account or at walmart.taxexempt.us)
- Create a tax-exempt account
- Enter your business information (legal name, address, EIN)
- Upload your resale certificate for each applicable state
- Wait for verification (typically 1-3 business days)
- Once approved, your purchases on Walmart.com will be tax-exempt
Walmart's Program vs. Amazon's ATEP
| Feature | Walmart WTEP | Amazon ATEP |
|---|---|---|
| Online purchases | Yes | Yes |
| In-store purchases | Yes (with linked account) | No (Amazon has no stores for this) |
| Approval time | 1-3 business days | 1-3 business days |
| Multi-state support | Yes | Yes |
| Third-party seller items | Limited | Limited |
| Certificate renewal | Follows state rules | Follows state rules |
The biggest advantage Walmart's program has over Amazon's is in-store support. You can link your tax-exempt status to your Walmart account and use it at physical store locations, which is valuable for arbitrage sellers.
Multi-State Compliance for Walmart Sellers
Building Your Registration Map
If you sell on Walmart Marketplace and use WFS, here is a practical approach to staying compliant:
- Start with your home state. Register for a sales tax permit and get your resale certificate.
- Identify WFS warehouse states. Check your Seller Center for inventory placement.
- Track economic nexus. Use your Walmart sales reports to monitor state-by-state revenue.
- Register as thresholds are crossed. Do not wait for a notice from a state tax authority.
- File returns on schedule. Even if Walmart collected on your behalf, some states require you to file.
Tools That Help
- Walmart Seller Center reports provide sales data by state
- TaxJar or Avalara can automate nexus tracking and filing
- Your accountant should review your multi-state obligations quarterly
Record Keeping for Walmart Sellers
What to Keep
| Record | Why It Matters |
|---|---|
| Resale certificates given to suppliers | Audit protection |
| Inventory purchase invoices | Proves items were for resale |
| Walmart Seller Center sales reports | Revenue and tax documentation |
| WFS inventory placement records | Nexus evidence |
| State registration confirmations | Compliance proof |
How Long to Keep Records
Keep all tax-related records for at least four years from the date the tax was due or paid, whichever is later. Some states require seven years. When in doubt, keep everything for seven.
Common Mistakes Walmart Sellers Make
Mistake 1: Ignoring WFS Nexus
Storing inventory in Walmart's warehouses creates real tax obligations. Sellers who ignore this risk back taxes, penalties, and interest from states that discover the nexus later.
Mistake 2: Not Registering in Their Home State
Some sellers assume that because Walmart collects sales tax, they do not need to register anywhere. Wrong. You need a sales tax permit in your home state at minimum, and a resale certificate for purchasing.
Mistake 3: Using the Certificate for Personal Purchases
This comes up with every platform, and the rule is always the same. Your resale certificate is exclusively for items you intend to resell. Using it for personal purchases is tax fraud, and auditors look for exactly this pattern.
Mistake 4: Not Providing Certificates to All Suppliers
Every supplier relationship should have a resale certificate on file. If you have five suppliers and only gave your certificate to three of them, you are overpaying on two.
Getting Started as a Tax-Compliant Walmart Seller
Quick-Start Checklist
- Register your business (LLC, sole proprietorship, or corporation)
- Get an EIN from the IRS
- Register for a sales tax permit in your home state
- Obtain your resale certificate
- Submit your certificate to all suppliers
- Enroll in Walmart's Tax Exemption Program
- Set up sales tax tracking for multi-state compliance
- Establish a record-keeping system from day one
Your resale certificate is the foundation of tax-efficient selling on Walmart Marketplace. It reduces your cost of goods, protects you in audits, and signals to suppliers that you are a legitimate business.