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Resale Certificate vs Seller's Permit: Medical
Resale certificate vs seller's permit for medical supply businesses: who issues each, what a supplier needs, and why a permit copy is no substitute (TX/CA).
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How do Seller's permit, Resale certificate compare side by side?
The table below compares Seller's permit, Resale certificate across 13 procurement-relevant dimensions, from what it is through when to pick each.
Side-by-side comparison
| Dimension | Seller's permit | Resale certificate |
|---|---|---|
| What it is | A registration with the state tax agency. CA: you cannot legally make sales of taxable products until you are issued a seller's permit (CA). Texas calls its version a sales tax permit. | A document the purchaser gives the seller stating that the property is bought for resale. CA: it may be in any form, provided it contains the required items. |
| Who needs it | CA: both wholesalers and retailers must apply for a permit. | A business buying goods it will resell, when it wants to buy without paying sales tax to the supplier. |
| Cost | CA: there is no charge for a seller's permit. | No state fee is stated in the sources read; the buyer prepares and signs it. |
| What it proves to a supplier | That the state has registered the business to make taxable sales. | TX: the resale certificate is the seller's evidence as to why sales tax was not collected on that transaction. |
| Required contents | Issued by the state; the application, not the document, is where your details go. | CA: purchaser name and address; a statement that the property is purchased for resale; the date; the signature of the purchaser or an authorized person. TX (Tax Code 151.152): signed by the purchaser, with name and address, the purchaser's tax permit number or a statement that a permit application is pending, and a description of the property. |
| Role of the permit number | Is the identifier a certificate refers to. | TX: the certificate states the purchaser's tax permit number (or that the application is pending). |
| Can one replace the other? | TX: the customer's sales tax permit number, or a copy of the permit, is not a substitute for a resale certificate. | TX: resale certificates require the purchaser's Texas taxpayer number, so the certificate builds on the permit rather than replacing it. |
| Buyer with no permit | Not applicable. | CA: a purchaser who does not hold a seller's permit must indicate that on the certificate, and why. |
| Wording to avoid | Not applicable. | CA: words such as nontaxable or exempt, or similar terms, are not acceptable; the certificate must state that the property is for resale. |
| Repeat purchases | One registration covers the business. | TX: a blanket certificate is allowed if the customer buys only for resale. |
| Record keeping by the seller | Not stated in the sources read. | TX: sellers keep accepted certificates for four years in their books and records. |
| Source | California Department of Tax and Fee Administration, Doing business page (taxes.ca.gov/Sales_and_Use_Tax/doingbus2.html), read 2026-11-01. | Texas Comptroller, Resale Certificate FAQ (comptroller.texas.gov/taxes/sales/faq/resale.php) and Texas Tax Code 151.152 (texas.public.law), read 2026-11-01. |
| When to pick each | Get the permit first: it is what lets you sell taxable goods and what a resale certificate refers to. | Give the certificate to a supplier on each stock purchase you will resell; give your permit number on it, not instead of it. Check your own state's form. |
Common questions
Common questions about Seller's permit vs Resale certificate
Is a seller's permit a resale certificate?
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No. The permit is the state's registration for making taxable sales; the resale certificate is a separate document the buyer signs for a supplier. Texas states that a customer's permit number or a copy of the permit is not a substitute for a resale certificate.
Can I give a supplier my permit instead of a resale certificate?
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In Texas, no: the Comptroller says the permit number or a copy of it does not replace the certificate, because the certificate is the seller's evidence of why tax was not collected. In California the certificate must contain the purchaser's name and address, a resale statement, a date and a signature. Check your own state's rules.
Does a business that buys medical supplies for resale need both?
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The sources describe both: a permit to make taxable sales (California requires it of wholesalers and retailers alike) and a certificate per purchase for resale. Which products are taxable is a state question not covered here.
Going deeper
