When to get a Texas resale certificate and how to apply

• 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.