When to get a Texas resale certificate and how to apply

This article was updated on July 3, 2026.

If you’ve decided to sell your products or services in Texas, you’ve made a wise choice. Texas is a business-friendly state with almost 32 million potential customers. But for your business to comply with the state’s tax laws, you need to file certain paperwork.

Texas does not issue a separate resale certificate or reseller license. Instead, businesses that hold a Texas sales and use tax permit can present a Texas sales and use tax resale certificate when purchasing qualifying items for resale.

Businesses that sell taxable goods directly to consumers may never need to present one, even though they collect Texas sales tax.

If you’re confused about the basics of Texas resale certificates, when to use them, and how to get them, this article covers everything you need to know.

• Texas does not issue a separate resale license or permit. Instead, eligible businesses use a Texas sales and use tax resale certificate to purchase qualifying items for resale without paying sales tax.
• Businesses should only use a resale certificate when purchasing items they genuinely intend to resell. Misusing a resale certificate can result in tax, penalties, and interest.
• Sellers must keep properly completed resale certificates on file to support tax-exempt sales, while buyers are responsible for providing accurate certificate information.
• Businesses that make regular qualifying purchases from the same supplier may be able to use a blanket resale certificate instead of completing a new certificate for every transaction.

In Texas, the sale of a taxable item that’s intended for resale is exempt from sales tax. For example, if you operate a gift shop, you can purchase inventory for the shop tax-free from a wholesaler because you intend to sell the goods to customers and collect the tax on the sales.

To purchase resale goods tax-free, you need to provide the seller with a resale certificate. If you don’t provide a certificate, the seller is required to charge you sales tax on the goods.

The resale certificate is a guarantee to the seller that you intend on reselling the items and that the sales tax doesn’t need to be collected at the time of purchase.

Businesses generally need a valid Texas sales and use tax permit before they can use a resale certificate.

Texas provides Form 01-339, which is available on the Texas comptroller’s website. A resale certificate must include basic information such as the names and addresses of the buyer and seller, the buyer’s Texas sales tax permit number, and a general description of the items sold.

Only use a resale certificate if you’re truly purchasing the goods for resale. If you’re unsure about reselling an item, you shouldn’t use the resale certificate to purchase it tax-free.

If you do purchase an item tax-free with a resale certificate, but then decide not to resell it, you’re responsible for the taxes owed.

Sellers generally need a valid resale certificate before selling taxable items tax-free. This may be a resale certificate provided for an individual purchase or, where appropriate, a blanket resale certificate covering future qualifying purchases.

Blanket certificates are generally used when future purchases of qualifying items are intended for resale — not literally every purchase a business makes.

Keeping track of resale certificates can become increasingly complex as your business grows. Avalara Exemption Certificate Management helps businesses collect, validate, and securely store resale certificates, reducing manual work while maintaining the documentation needed to support exempt sales and prepare for audits.

When do Texas sellers need resale certificates?

Texas sellers need resale certificates when purchasing taxable goods they intend to resell to customers. By providing a properly completed Texas sales and use tax resale certificate to their suppliers, eligible businesses can purchase inventory without paying sales tax at the time of purchase.

What is a Texas sales and use tax resale certificate?

A Texas sales and use tax resale certificate is a document that allows businesses to purchase qualifying items tax-free when those items are intended for resale. The certificate is provided to the seller and certifies that sales tax will be collected when the goods are ultimately sold to the end customer.

Do I send my Texas resale certificate to the Comptroller?

No. A Texas resale certificate is provided directly to the seller from whom you’re purchasing goods for resale. The seller keeps the certificate as part of their records to support the tax-exempt sale — you do not file it with the Texas Comptroller.