How to Get a Washington Resale Certificate for your Business

If you run an Ecommerce or CPG business in Washington, securing a Washington Resale Certificate is a smart move to protect your margins and streamline operations.

This certificate allows you to purchase inventory and raw materials tax-free, helping you lower upfront costs, stay competitive in pricing, and remain compliant with Washington sales tax laws.

Understanding Resale Certificates in Washington

What is a Washington Resale Certificate?

In Washington, they call “Resale Certificates” a “Reseller Permit.” This document, issued by the Washington Department of Revenue (Washington DOR), allows businesses to:

• Purchase goods without paying sales tax, as long as they intend to resell these goods to their customers in the normal course of their operations.
• Make tax-exempt purchases of inventory and materials that will become part of the products they sell by presenting a valid resale certificate to their suppliers.

The purpose is to prevent double taxation, first at the wholesale level and then again at the point of retail sale.

However, a Washington reseller permit is not a blanket exemption from all sales tax obligations. Businesses must still collect and remit sales tax on taxable sales to end consumers.

Washington Reseller Permit vs. Resale Certificates

Both documents essentially serve and provide the same benefits or purpose for businesses that intend to purchase goods for resale. However, there are still a few clear distinctions between the two.

So what’s the difference between standard resale certificates in other states vs Washington’s reseller permit? In Washington, Reseller Permits have:

• Permit numbers that are unique to each business: The last two digits of the permit number indicate the year it expires, serving as an efficient way to immediately determine the document’s validity.
  While generally valid for four years, permits may be valid for only two years if the business is a contractor, has been open for less than 12 months, has not reported gross income in the last 12 months, or has failed to file tax returns in the last 12 months.
• Your business information: Generally, you no longer have to fill out the form as the permit is issued to your business and already includes the required details of your business. There is an optional field you can fill out for additional notes you wish to include related to a transaction
• A specific-purpose feature: A Washington Reseller Permit is solely for purchasing items intended for resale. It is illegal to use it for personal or non-resale purchases, such as office supplies, equipment for business operations, or promotional giveaways.
  However, if an item is legitimately purchased with a Reseller Permit for resale but is later used or consumed by the business (e.g., as an office supply or for personal use), then the business is required to remit and report the deferred sales tax on that item.
• Clear validity periods: You can find the effective date and expiration date listed in the upper-right corner of your Reseller Permit. This is a distinction from some, but not all, standard resale certificates from other states, as many states do have specific validity periods or require periodic renewal for their resale certificates.
• Restricted usage: Reseller permits are unavailable to unregistered or unlicensed businesses in Washington. The state issues it only to eligible registered businesses or other qualified sellers, such as:
  • Businesses with valid state endorsements
  • Licensed contractors operating in the labor industry as defined in RCW 82.32.783
  • Farmers not required to register with the Washington Department of Revenue

Despite the uniqueness of a Washington Reseller Permit, it’s not unduly different from most resale certificates regarding its functionality. Like standard resale certificates, a Washington Reseller Permit provides the same benefits as detailed below.

Why do you need a Washington Resale Certificate?

Obtaining a resale certificate in Washington offers several significant advantages for businesses that purchase goods for resale.

Here are some key benefits:

• Avoid Paying Sales Tax on Inventory: The most direct benefit is purchasing inventory and materials that will be resold to customers without paying Washington’s sales tax upfront. 
• Maintain Competitive Pricing: By not paying sales tax on the cost of goods, businesses have more flexibility in setting competitive prices for products in the Washington market. This can be a crucial advantage, especially in price-sensitive industries.
• Legal Compliance: Possessing and using a valid resale certificate for eligible purchases ensures businesses comply with Washington’s sales tax laws and regulations to avoid penalties.

While most states typically require buyers to fill out a generic resale certificate form, often downloadable from their Department of Revenue, Washington does not. The Washington DOR refers to it solely as a “Reseller Permit” and should not confuse it with a “Sellers Permit.”

Resale Certificate vs. Sales Tax Permit: What’s the Difference?

Following what’s stated above, a Washington Reseller Permit is not the same as a Sales Tax Permit. Since other states may refer to Sales Tax Permits as “Sellers Permits,” confusion is understandable.

To provide clarity, here’s a simplified explanation.

In Washington, a “Sales Tax Permit” is generally referred to as a “Business License.” By having a Business License, you become qualified to collect and remit sales tax on taxable sales to customers.

A Washington Reseller Permit allows you to purchase goods tax-free from suppliers when you intend to resell those goods. To become eligible for this permit, you’re typically required to have a Washington Business License.

Businesses without a Washington Business License cannot obtain a Resellers Permit unless they meet other specific qualifications. The following section discusses those qualifications.

Who Can Use a Resale Certificate in Washington?

Businesses purchasing goods for resale can use a Washington Reseller Permit only if they meet the state’s specific requirements. For instance, the business must actively sell taxable tangible products and hold a valid Washington Business License.

Aside from registered vendors, other qualified businesses can also obtain a Washington Reseller Permit. According to WAC 458-20-10201, those eligible businesses are:

• Businesses with State Endorsements: In Washington, you need state endorsements to operate your business in specific industries legally. The Business Licensing Service (BLS) often manages these endorsements. Below are a few examples of businesses that require a state endorsement in Washington.
  • Architecture firms Car rental services
  • Collection agencies
  • Cannabis, cigarette, tobacco, or vapor vendors
  • Vehicle manufacturers, for hire (taxi), transporters, disposals, and dealers
• Licensed Contractors: All contractors engaged in the labor industry are required to register under Washington’s law. You must be licensed or have a valid tax account in Washington to apply for a Reseller Permit.
  To become a licensed contractor, you must go to the Washington Department of Labor and Industries website and register there.
• Unregistered Farmers: Farmers who are not otherwise required to register with the Washington DOR for a general business license can still obtain and use a Reseller Permit if they are engaged in business activities that involve purchasing for resale. Farmers with a nexus in Washington are generally required to register to stay tax-compliant.
  Farmers may also use the Farmer’s Certificate for Wholesale Purchases and Sales Tax Exemptions form for qualified purchases.

Out-of-State Businesses: You cannot get or use a Washington Reseller Permit unless you have a Washington Business License. However, you’re only generally required to register your business in Washington if you have a sufficient nexus in the state.

Instead of using a Reseller Permit, unregistered businesses without a nexus are encouraged to utilize other resale certificates such as:

• Streamlined Sales Tax (SST) Certificate of Exemption
• Uniform Sales & Use Tax Resale Certificate – Multijurisdiction Form

For more information regarding these other resale certificates, refer to the “Multi-Jurisdictional Resale Certificates” section of this blog.

How to Get a Resale Certificate in Washington: A Step-by-Step Guide

Getting a resale certificate in Washington is straightforward, but you’ll need to meet a few key requirements first. As stated in WAC 458-20-10201, you must know that being a registered business in Washington doesn’t guarantee a Resellers Permit.

Regardless of the uncertainty, you can always attempt to obtain a Reseller Permit in Washington by following these steps:

1. Make Sure You’re Eligible: Your business must sell taxable goods or services and be registered with the Washington Department of Revenue. Typically, businesses with a valid Washington Business License may automatically receive a Reseller Permit.

However, under Washington’s Administrative Code 458-20-10201, the eligibility for applying for a reseller permit is strictly determined by the state. 

According to the aforementioned code, you must keep in mind that: 

• The state will issue Reseller Permits only after verifying that the business is eligible to make wholesale purchases.
• Even if you have registered your business, the Washington State authorities must assess your application before you can receive a Reseller Permit.

If you’re already registered in Washington and have not received your Resellers Permit, you must apply first. By sending your Reseller Permit application, you’re prompting the Washington DOR to begin assessing your business’s eligibility.

2. Get a Washington Business License: If you don’t already have one, apply for a Washington Business License through the Washington Department of Revenue. You generally need this license before you can receive or use a Reseller Permit.

As stated by the Washington DOR, new businesses may receive a Reseller Permit automatically. To increase the likelihood of receiving a Reseller Permit, you must indicate that your business will engage in resale transactions.

However, if you’re not required to register in Washington, then you may opt to skip this step. Registering for a Business License is only mandatory for businesses with a sufficient nexus in the state.

Need help? Read our blog: How to Get a Seller’s Permit in Washington

3. Use your Washington Department of Revenue account: If you already have a Business License, then that means you also created an online account with the Washington state website.

Other qualified businesses with valid state endorsements or licensed contractors should also maintain an excise tax account. Having an excise tax account with the Washington DOR allows you to get or manage your Reseller Permit.

Refer to the instructions below for guidance.

• To apply for or renew your Washington Resellers Permit: 
  • Log in to your tax account through the dor.wa.gov.
  • Enter your account details and complete the authentication challenge (if needed).
  • Find the “My DOR Services” section. From there, click the “Get Started” option.
  • Under the Excise Tax Account page, click the “Apply for/view a Reseller Permit” link.
  • Fill out the questionnaire, then submit your application. The approval process may take 10 business days, but can last up to 60 days.
• After receiving approval, you can print or update your Washington Resellers Permit:
  • Log in to your account and pass the authentication challenge (if applicable).
  • Go to the “My DOR Services Page”, then find the “Other services” section.
  • From the other services section, click the “Print your reseller permit” link.
  • This link will also show whether your permit is active or not. You may also update your business details on that page. After confirming that all details are accurate, you may proceed and click the “Print Permit” link.
  • A new tab will appear showing a preview of your Reseller Permit. Navigate the browser’s menu to download or print your permit.

4. Review your Reseller Permit: Once you can print your Reseller Permit, ensure that all information is accurate or up to date. Typically, you do not need to fill out a Washington Reseller Permit after printing.

The document itself should already contain all the required information for your business and its transaction purpose. For reference, you may check a Sample Reseller Permit from the Washington DOR. 

You only have an optional field to fill out for adding important notes relevant to your transaction.

5. Submission: No submission required in Washington. You don’t submit the Reseller Permit to the state. Instead, give a printed copy of your Reseller Permit document to your suppliers when buying items for resale.

6. Pay Any Applicable Fees: There’s no cost to apply for a Washington Reseller Permit. However, you’ll typically need a valid Washington Business License. Depending on the license type, additional fees may apply.

7. Know the Validity Period of Reseller Permits: Generally, most Reseller Permits should be valid for 4 years. However, the following businesses only receive 2 years of validity for their permits:

• Contractors or new businesses (have not operated for more than 12 months)
• Businesses that have not reported their gross income in the previous 12 months
• Businesses recognized by the state as actively non-reporting during their application
• Businesses that failed to file tax returns in the previous 12 months

To check your Reseller Permit’s validity, you have 3 options:

• Use your excise tax account at dor.wa.gov and view the active status of your Reseller Permit.
• Check your original copy of your Reseller Permit. The last 2 digits of your permit number indicate the year your permit expires.
• Under your permit number, you’ll also see the specific expiration date of your Reseller Permit.

If you wish to apply or renew your Reseller Permit, refer to the instructions from Step #3.

Invalid Reseller Permit: Reseller Permits can become invalid if your Business License, Contractor’s License, or State Endorsements have been revoked or inactive. If the Washington DOR closes your excise tax account, you also make your Reseller Permit unusable.

8. Understand Renewal Requirements: After the standard 4 or 2-year validity period, in some cases, your permit may be renewed automatically. Check your Washington online account to verify whether you have renewed your permit.

However, if your permit won’t automatically renew, the Washington DOR will send you a renewal notice. This prompts you to reapply for a Reseller Permit within 90 days before your current one expires.

You might also need to renew or update your Reseller Permit if:

• There are significant changes to your business details, such as a shift in the business’s structure 
• or changes in the nature of the transaction (like purchasing different goods not described in the original Reseller Permit)

How to Use a Washington Resale Certificate

To properly utilize your resale certificate in Washington when making tax-exempt purchases for resale, you’ll need to present a valid copy of your Business License to your supplier at the time of purchase.

For out-of-state businesses purchasing from Washington suppliers, the rules for claiming a sales tax exemption for resale are specific

Washington generally does not accept generic resale certificates issued solely by other states. Instead, it accepts specific uniform exemption certificates from out-of-state buyers who do not need to register in Washington.

Accepted Certificates for Out-of-State Businesses: To claim a sales tax exemption in Washington if you are an out-of-state business without a Washington Reseller Permit, you must use one of the specific uniform exemption certificates approved by the Washington Department of Revenue.

The primary accepted certificates for out-of-state buyers in Washington are:

• Streamlined Sales Tax (SST) Certificate of Exemption
• Uniform Sales & Use Tax Resale Certificate – Multijurisdiction Form (issued by the Multistate Tax Commission – MTC)

You must properly complete these certificates with all required information, including the buyer’s name, address, relevant identification number from their home state (if applicable), and the specific reason for exemption (e.g., for resale).

If you are an out-of-state business purchasing from a vendor in Washington and plan to claim a tax exemption for resale, you must provide one of the Washington-approved uniform exemption certificates (SST or MTC forms) at the time of purchase.

Keep in mind that Washington vendors have the right to refuse any exemption certificate if it is not one of the approved forms. If it is incomplete, or if they have reason to believe the purchase is not for legitimate resale.

This is because, without proper documentation, the seller could be held liable for uncollected sales tax during an audit, as outlined in Washington tax law, specifically RCW 82.04.470.

For a seamless transaction, it is highly recommended to inquire about your Washington supplier’s policies on accepting Streamlined Sales Tax (SST) or Multistate Tax Commission (MTC) forms beforehand.

This practice also helps prevent potential audit issues for both the buyer and the seller.

For more information regarding Reseller Permit laws in Washington, you may read the Washington Administrative Code 458-20-10201.

Multi-Jurisdictional Resale Certificates

A standardized multi-jurisdictional resale certificate simplifies tax-exempt purchases for businesses that operate and make purchases for resale across state lines.

Unlike a standard resale certificate issued by a single state, a multi-jurisdictional certificate seeks recognition and acceptance by multiple states as valid proof that the buyer intends to purchase the goods for resale and is therefore exempt from sales tax at the time of purchase.

However, it’s crucial to understand that not all states accept these multi-state forms, and acceptance can come with specific conditions.

As previously mentioned, Washington has approved two multi-jurisdictional resale certificates. 

Businesses operating in or selling to vendors in Washington might encounter these forms, often provided by out-of-state purchasers:

• Uniform Sales & Use Tax Resale Certificate – Multijurisdiction Form: This is a widely recognized form accepted by a significant number of states, including Washington. Businesses that are not required to be registered in Washington (i.e., do not have nexus) are encouraged to use this form.
  You can provide your home state’s sales tax ID number to properly complete this form. You can find this form on the Multistate Tax Commission (MTC) website.
  NOTE: If you are a registered vendor in Washington, meaning you hold a Washington Business License and must collect and remit sales tax, follow the specific instructions outlined in WAC 458-20-10201 when using this certificate.
  • Registered Washington Vendors: You must include your Reseller Permit number when completing the Uniform Sales & Use Tax Resale Certificate form. Otherwise, the Washington DOR may not recognize your form as a valid resale certificate in case of an audit.
    To prevent this risk, using the Washington-issued Reseller Permit document is generally the most straightforward and recommended option.
• Streamlined Sales Tax (SST) Certificate of Exemption: Washington is a member of the Streamlined Sales Tax Governing Board. Therefore, while a Washington vendor will typically accept an SST Certificate of Exemption. For specific instructions for using this certificate, you may view the official form revised by the state of Washington here.
  You can also learn more about Washington’s SST membership details through its Streamlined sales tax® dedicated page.
  • Registered Washington Vendors: Similar to the Uniform Sales & Use Tax Resale Certificate, you’re required to provide your Reseller Permit number when using this form.

While unregistered businesses in Washington can use these forms, you must still be aware of your nexus in the state. Once you establish a nexus, registering your business becomes mandatory.

That aside, if you plan to use these alternative resale certificates, you must verify your supplier’s policies beforehand. Despite allowing the use of these forms, not all Washington vendors will accept your multijurisdictional resale certificate.

For a seamless business transaction, always ask your Washington vendors about their preferences first. 

Responsibilities When Using or Accepting a Washington Resale Certificate

Buyer Responsibilities

Using a Washington Reseller Permit means you’re responsible for ensuring you use it only for purchases of goods or services you intend to resell. Using it for personal or operational items (like office supplies or equipment) is illegal and may lead to penalties.

• General Washington-based buyers: Ensure all your business details are accurate in your Reseller Permit before providing a copy to your Washington vendor. You must guarantee that you only intend to use the purchased goods for resale.
• Farmers: Farmers may use a Reseller Permit to purchase goods such as feed, seed, seedlings, fertilizers, or spray materials. However, if the Washington DOR requires you to register, you will need to obtain the appropriate license first.
  Once you’re registered, you’ll also have access to the Farmer’s Certificate for Wholesale Purchases and Sales Tax Exemptions. It’s another document you can use to make tax-exempt purchases for goods related to farming businesses.
• Contractors: Licensed contractors in labor industries may use Reseller Permits to purchase materials and contract labor for retail or wholesale construction. Take note of your Reseller Permit’s validity period, which should only be for 2 years.
• Out-of-state buyers: Businesses not required to register in Washington (no nexus) are allowed to utilize multi-jurisdictional resale certificates. Those certificates must be properly completed and provided at the time of the purchase to qualify for an exemption.
  However, businesses with a nexus in Washington must register with the Washington DOR. Otherwise, you’ll subject your business to risks of non-compliance, leading to severe penalties.
• Subsequent Use of Items Purchased for Resale (Deferred Sales Tax): If you’re a business that may use the Reseller Permit for dual-purpose purchases, your duty is to report deferred taxes. This refers to the goods you purchased without paying for sales tax, as it was originally intended for resale.
  However, since you decided to use or consume the goods for other purposes, you are now liable for sales tax. In this case, you must report and remit the deferred tax to the Washington DOR. Otherwise, you may subject yourself to penalties if found guilty of misusing a Reseller Permit.

Taxable Amount Deduction: This option is for buyers whose Reseller Permit was declined (or unavailable at the time) and was charged sales tax. Report the transaction in your next tax return to receive a refund for the sales tax you paid on a qualifying resale purchase.

For more information, you may visit the Washington DOR’s official website.

Note: You may also see an option to request a sales tax refund. However, consumers mainly utilize this and not businesses.

Seller Responsibilities

As a seller in Washington, accepting a Reseller Permit comes with the responsibility of verifying and retaining proper documentation for tax-exempt sales. You must:

• Accept the certificate in good faith (including other properly signed and completed state-approved exemption certificates)
• Check the Reseller Permit or the exemption certificate’s validity
• Obtain a copy of the buyer’s Washington Reseller Permit. Alternatively, if allowed by WAC 458-20-102, you may use the Department of Revenue’s “Business Lookup” tool to verify the buyer’s information, including their active reseller permit status, and retain a printout of this verification.
• Export and save the record you received upon verifying a buyer’s Reseller Permit through the “Reseller Permit Verification Service.” This service is free, and you can use it when verifying multiple records. 
• Ensure it includes all required information: buyer’s name, address, sales tax permit number (or equivalent), reason for exemption, and signature
• Reject the certificate if the items aren’t for resale (e.g., personal or business use) and collect sales tax for the transaction
• Verify your recurring customer’s Reseller Permit at least once a year

Keep records for at least 5 years: A properly completed resale certificate is your official proof of why sales tax wasn’t collected. You must retain it in your records for at least five years in case of a sales tax audit by the Washington DOR.

Frequently Asked Questions About the Washington Resale Certificate

Are There Penalties for Misusing a Washington Resale Certificate?

Yes. Misusing a Washington Reseller Permit even without fraudulent intent leads to the following penalties defined under the RCW 82.32.291:

• Pay the due tax with an additional 50% penalty and/or
• Reseller Permit or other license revocation

Does a Washington Resale Certificate Expire?

Washington Reseller Permits are typically valid for 4 years. However, contractors or businesses with specific records with the Washington DOR are only eligible for a 2-year validity period. The Washington DOR may automatically renew your Reseller Permit. If not, the Washington DOR will send you a renewal notice.

You must also note that your Reseller Permit becomes unusable if your Washington Business License becomes revoked or inactive.

How Do I Verify a Resale Certificate in Washington?

If you’re a seller in Washington, there are 2 ways to validate a Reseller Permit:

• Use the “Business Lookup” tool for validating only one permit at a time. 
  • Enter the buyer’s Reseller permit number and click “search.”
  • Pass the website verification, then select “Verify.”
  • Find the correct business name among the search results and review the relevant details from there.
• Use the “Reseller Permit Verification” service (free) for verifying multiple permits.
  • Create and upload an electronic file containing your customer’s Reseller Permit details.
  • The service shall deliver your original data and the customer’s information available on all records.
  • Examine the information to verify the permit’s validity. After that, you may export, save, and then submit your file online via the Washington DOR.
  • Keep a copy of the exported document.

For more instructions, visit the Washington DOR’s official webpage or send an email to resellerspermit@dor.wa.gov.

How TaxHero Can Help

You don’t have to complicate managing sales tax compliance and resale certificates in Washington. TaxHero simplifies the process. From keeping your Washington Reseller Permit active to ensuring you use resale certificates correctly.

Save time. Avoid penalties. Stay compliant.

Schedule a Demo to see how TaxHero can streamline your resale certificate in Washington process today!