EIN Comparison
EIN vs Sales Tax Permit & Resale Certificate (2026)
Sellers confuse three separate things: the EIN, the sales tax permit, and the resale certificate. Each comes from a different place and does a different job. Here is how they fit together.
Last updated: July 10, 2026
An EIN is not the same as a sales tax permit or resale certificate. The EIN is a federal tax ID from the IRS. A sales tax permit (seller's permit) is issued by your state and lets you collect sales tax. A resale certificate is a document you give suppliers to buy inventory tax-free for resale — it's not an ID number at all. A seller typically needs an EIN AND a state sales tax permit, and uses a resale certificate on top of both.
Sellers routinely mix up three separate things. The EIN, the sales tax permit, and the resale certificate come from different authorities and do different jobs. Treating them as one causes registration mistakes and tax problems.
This guide separates all three, explains what each is used for and who issues it, walks through an ecommerce example, shows how to get each, and covers the non-resident seller case. For the federal tax ID basics, see what is an EIN.
EIN vs Sales Tax Permit vs Resale Certificate: Three Different Things
The EIN, sales tax permit, and resale certificate are three distinct items. One is a federal ID number, one is state authority to collect tax, and one is a document to buy tax-free.
| Item | What it is | Issued by | Number or document? |
|---|---|---|---|
| EIN | Federal tax identification number | IRS (federal) | 9-digit number |
| Sales tax permit | Authority to collect sales tax | State department of revenue | State-issued number |
| Resale certificate | Proof a purchase is for resale | State (tied to your permit) | Document / form |
The EIN identifies your business to the IRS. The sales tax permit lets you legally collect tax from customers. The resale certificate lets you buy inventory without paying tax you would otherwise reclaim. Three separate functions, none interchangeable.
Why It Matters
Why Do Sellers Confuse These, and What Goes Wrong?
Sellers confuse these because all three relate to taxes and business setup. The practical consequence of getting it wrong is collecting tax illegally, overpaying on inventory, or failing a marketplace's tax setup.
Common mistakes and their cost:
- Using an EIN as a sales tax permit. You cannot legally collect sales tax with only an EIN. Collecting without a state permit can bring penalties.
- Skipping the resale certificate. Without it, you pay sales tax on inventory you will resell, cutting your margin.
- Assuming one registration covers all states. Sales tax permits are per-state and tied to nexus, unlike the single federal EIN.
Each item solves one problem. The EIN handles federal identity, the permit handles collection authority, and the resale certificate handles tax-free purchasing. Getting all three right keeps your sales tax compliant.
How Does This Work for an Ecommerce Seller?
An ecommerce seller needs an EIN for federal identity and marketplace setup, a sales tax permit in each nexus state, and a resale certificate to source inventory tax-free. Marketplace tax collection does not remove the permit need in every case.
An Amazon or Etsy seller's stack looks like this:
- EIN — used for the marketplace tax interview, banking, and federal filing. See EIN for Amazon sellers and EIN for Etsy sellers.
- Sales tax permit — required in states where the seller has physical or economic nexus and sells taxable goods.
- Resale certificate — presented to wholesale suppliers to buy stock without paying sales tax upfront.
Marketplaces collect and remit sales tax in many states under marketplace facilitator laws, but sellers with their own nexus often still register for permits. The EIN is the one constant across every marketplace and state.
Getting Each
How Do You Get Each Document?
You get the EIN from the IRS, the sales tax permit from your state, and the resale certificate through your state permit. The order runs federal first, then state.
Get your EIN from the IRS
Apply for the EIN first — it anchors your business and appears on later registrations. See how to get an EIN.
Register for a state sales tax permit
Register with each state's department of revenue where you have nexus and sell taxable goods. This is separate from any state tax ID.
Obtain your resale certificate
Once you hold a sales tax permit, issue resale certificates to suppliers to buy inventory tax-free. Most states tie the certificate to your permit number.
The EIN never expires, but sales tax permits often renew and must be kept current in each state where you sell.
How the Permit and Resale Certificate Work Together
The sales tax permit and the resale certificate are the two state items people confuse most, because both involve sales tax. The permit is about collecting; the certificate is about buying.
| Question | Sales tax permit | Resale certificate |
|---|---|---|
| What it lets you do | Collect sales tax from customers | Buy inventory tax-free from suppliers |
| Direction of the tax | You charge tax on sales | You avoid tax on purchases |
| Form vs number | State-issued permit number | A document you hand to suppliers |
| Prerequisite | Register with the state | Usually need a permit first |
You register for the permit once per state, then reuse resale certificates each time you buy stock. Both sit on top of the single federal EIN, which never changes as you add states.
Non-Resident Note
Do Non-US Resident Sellers Need a Sales Tax Permit?
A non-US resident seller can get an EIN remotely, but sales tax permits still apply based on nexus. Selling into a US state above its economic nexus threshold triggers a permit requirement there, regardless of where the seller lives.
The EIN is available to any foreign owner of a US business through Form SS-4. Sales tax obligations follow economic nexus rules: once your US sales into a state exceed that state's threshold (often $100,000 or 200 transactions), you must register for a permit in that state. Marketplace facilitator laws shift much of this to platforms like Amazon, but direct-to-consumer non-resident sellers often need their own permits. Start with the EIN — see EIN for non-residents — then assess nexus state by state. For related ID confusion, see EIN vs tax ID.
Frequently Asked Questions
Is a resale certificate the same as an EIN?
No. A resale certificate is a document you give suppliers to buy inventory tax-free for resale. An EIN is a 9-digit federal tax identification number from the IRS. The resale certificate is not an ID number at all — it is a form that certifies a purchase is for resale. They serve entirely different purposes.
Do I need a sales tax permit if I have an EIN?
Usually yes, if you sell taxable goods. The EIN identifies your business federally, but it does not authorize you to collect sales tax. A state sales tax permit does that. If you sell taxable products in a state where you have nexus, you need the state permit in addition to your EIN.
Is a seller's permit an EIN?
No. A seller's permit — another name for a sales tax permit — is issued by a state and authorizes you to collect sales tax. An EIN is a federal tax ID from the IRS. A seller's permit is state-level and about collecting tax; an EIN is federal and about identifying your business. You typically need both.
Does an online seller need both an EIN and a sales tax permit?
Usually yes. An online seller needs an EIN for federal tax identification, banking, and marketplaces, plus a sales tax permit in each state where the seller has nexus and sells taxable goods. Marketplaces like Amazon and Etsy collect and remit sales tax in many states, but sellers still often need their own permits.
What is a resale certificate used for?
A resale certificate lets you buy inventory from suppliers without paying sales tax, because you will collect tax when you resell the item. You present it to your supplier at purchase. It prevents double taxation on goods bought for resale. You usually need a sales tax permit before you can issue a valid resale certificate.
Who issues each one?
The IRS issues the EIN at the federal level. Your state's department of revenue or taxation issues the sales tax permit and, in most states, the resale certificate authority tied to it. The three come from two levels of government: federal for the EIN, state for the permit and resale certificate.
Can a non-US resident seller get an EIN and a sales tax permit?
A non-US resident can get an EIN remotely from the IRS without an SSN. Sales tax permits depend on economic nexus — if the seller's US sales into a state cross that state's threshold, a permit is required there. A non-resident selling into the US often needs the EIN plus permits in nexus states.
What happens if I collect sales tax without a permit?
Collecting sales tax without a valid permit is illegal in most states and can bring penalties. You must register for a sales tax permit before collecting tax from customers. Having an EIN does not authorize collection. Register with the state's department of revenue first, then collect and remit the tax you gather.
Get Your EIN First
Every seller starts with an EIN. ein.so files yours with the IRS. $49 Standard. $97 Express. No SSN required.
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