Resale certificate
Updated
Definition
A document a buyer issues to a seller to purchase goods tax-free for the purpose of reselling them. The buyer uses their sales tax permit number on the certificate. Required for dropshipping relationships and wholesale purchases.
Related terms
- Sales tax permit— Official registration with a state Department of Revenue authorizing a seller to collect a…
- Dropshipping— A retail fulfillment method where the retailer doesn't hold inventory — instead, when a cu…
Where this applies
- See What is sales tax nexus for the pillar explanation of how nexus works.
- Try the nexus calculator to check your exposure.
- Browse the full glossary for other key terms.