What’s the Difference Between a Resale Certificate and a Sales Tax License/Permit or Vendor’s License/Permit?

A resale certificate is a signed document provided by a buyer to a seller, stating that the items being purchased are intended for resale. It allows the buyer to make tax-exempt purchases of goods they plan to sell to others.

A sales tax license/permit or vendor’s license/permit is an official document issued by a state’s Department of Revenue or Department of Commerce. It is granted to a business after registering to operate within that state and allows the business to legally collect and remit sales tax.