How to Get a Resale Certificate in NC: Form E-595E

To get a resale certificate in North Carolina, you register for a Sales and Use Tax account with the state Department of Revenue, then fill out Form E-595E and give it to each supplier you buy inventory from. The form itself is free, and once a supplier has a valid copy on file they stop charging you sales tax on qualifying wholesale purchases. Depending on the county, that saves you between 6.75% and 7.50% on every order.¹

Step 1: Register for a Sales and Use Tax Account

You cannot complete Form E-595E without a Sales and Use Tax account ID number, so registration comes first. Anyone selling tangible personal property at retail or wholesale, providing taxable services, or renting taxable property in the state has to register. If you sell only at wholesale and make no taxable retail sales, choose “wholesale only” during registration; that spares you from filing periodic sales tax returns.²

Registration runs through the Department of Revenue’s Online Business Registration portal. This is not the Secretary of State’s BizFile system, which handles entity formation rather than tax accounts.³ Have this information in front of you before you start:

Your Federal Employer Identification Number, or your Social Security Number if you are a sole proprietor.
Your legal business name exactly as it appears on your formation documents.
The date you began or will begin operating in North Carolina.
Your physical location and mailing address. These can differ, but both are required.
Your Secretary of State ID number if you are an LLC or corporation, which links the tax account to your corporate filing.

After you submit, the Department reviews the application and issues your account ID. Watch both your email and physical mailbox for the confirmation.

Step 2: Fill Out Form E-595E

Form E-595E is officially the Streamlined Sales and Use Tax Certificate of Exemption, and you download it directly from the Department of Revenue’s website.⁴ The form asks for:

Your legal name and business address as they appear on your tax registration.
Type of business, such as retail trade, wholesale trade, manufacturing, or another applicable category.
Reason for exemption. For purchases you intend to resell, select Exemption Reason G (Resale).
Your Sales and Use Tax account ID. The form accepts either a sales and use tax registration number or an exemption number.⁴

Out-of-state businesses that are not registered in North Carolina can still use Form E-595E for resale purchases by providing a sales tax ID number from any state where they are registered. You are responsible for confirming that North Carolina recognizes the exemption you are claiming.⁵

Blanket Certificate or Single Purchase

The form lets you check a box for a single-purchase certificate. If you leave that box unchecked, the form works as a blanket certificate covering all future orders from that vendor, which is what most businesses buying inventory on a recurring basis want.⁵

A blanket certificate stays in effect until you cancel it in writing, with one condition. A recurring business relationship must exist, and no more than 12 months can pass between purchases from that vendor. Go longer than a year without an order and the certificate lapses; you’ll need to provide a fresh one before your next tax-exempt purchase.⁵

Give the Certificate to Your Supplier

How you deliver the completed form depends on the supplier. Many wholesalers accept a scanned copy by email or let you upload it to your buyer profile in their procurement portal. For in-person transactions at a wholesale warehouse, bring a signed hard copy to present at checkout.

Once a valid certificate is on file, the seller stops collecting sales tax on qualifying purchases. If you fail to provide a certificate, the seller is legally required to charge the full combined state and local rate on the transaction. Keeping updated certificates with every major supplier prevents surprise tax charges on orders you assumed would be tax-free.

How Sellers Verify Your Certificate

Suppliers do not have to take your word for it. The Department of Revenue publishes an online Registry of Sales and Use Tax Numbers where anyone can look up whether a buyer’s account ID is active. The database covers active accounts, though it may not include taxpayers who registered but are not required to file returns. A seller who cannot find your account can call the Department at 1-877-252-3052.⁶

The Exemption Only Covers Goods You Actually Resell

This is where small businesses trip. Buy something tax-free on a resale certificate and then use it yourself, and you owe use tax on that item. The exemption applies only to goods you resell to a customer. The moment you pull inventory off the shelf for your own office, for a gift, or for any non-resale purpose, the tax obligation kicks in.

You report and pay use tax on those items through Form E-500, the Sales and Use Tax Return, or through the Department’s online filing system. The rate is the same combined rate you would have paid at the register.⁷ Skipping this is one of the most common triggers for penalty assessments during a state audit.

Penalties for Misuse

Using a resale certificate to avoid sales tax on items you never intend to resell is not a gray area. North Carolina treats misuse as a civil infraction with a flat $250 penalty per occurrence, assessed by the Secretary of Revenue. On top of that, you will owe the full sales tax on every improperly exempted purchase, plus interest.⁸

If the Department concludes the misuse involved fraud with intent to evade taxes, a fraud penalty equal to 50% of the total tax deficiency is added, and willful tax evasion is classified as a Class H felony under North Carolina law.⁸ Auditors look at patterns. A single accidental personal purchase is unlikely to draw a fraud finding, but routinely buying personal items on a resale certificate creates a trail that is hard to explain. Keep your own copies of every certificate you issue; they are your proof during an audit.

What You Owe After You’re Registered

Registering for a Sales and Use Tax account means you have agreed to file periodic returns, even in periods when you owe no tax. The Department assigns your filing frequency based on your monthly tax liability:

Quarterly, if your tax liability is consistently less than $100 per month. Returns and payments are due by the last day of the month following each calendar quarter.
Monthly, if your liability is more than $100 but less than $20,000 per month. Returns and payments are due by the 20th of the following month.
Monthly with prepayment, if your liability reaches $20,000 or more per month. You must file and pay electronically, and each return includes a prepayment toward the next month’s liability.⁹

Your initial frequency is set at registration, and the Department will notify you by mail if it changes. Missing a deadline generates penalties and interest that add up quickly. If your business closes or you stop making taxable sales, contact the Department to close the account rather than simply stopping filings. An open account with missing returns will keep generating compliance notices.

1
North Carolina Department of Revenue. Current Sales and Use Tax Rates
2
North Carolina Department of Revenue. Who Should Register for Sales and Use Tax?
3
North Carolina Department of Revenue. Online Business Registration
4
North Carolina Department of Revenue. Form E-595E, Streamlined Sales and Use Tax Certificate of Exemption
5
North Carolina Department of Revenue. E-595E Streamlined Sales and Use Tax Certificate of Exemption PDF
6
North Carolina Department of Revenue. Registry of Sales and Use Privilege Tax Numbers
7
North Carolina Department of Revenue. Consumer Use Tax
8
Justia Law. North Carolina Code 105-236 – Penalties
9
North Carolina Department of Revenue. Sales and Use Tax Frequently Asked Questions