How to Get a Resale Certificate in Texas: Form 01-339 Steps

To get a resale certificate in Texas, first apply to the Texas Comptroller for a free Sales and Use Tax Permit, then fill out Form 01-339 (the Texas Sales and Use Tax Resale Certificate) and hand it to your supplier. The certificate tells the seller you plan to resell the items, so sales tax should not be charged on that purchase. Tax is collected once, when the final customer buys the product.

Step 1: Apply for a Sales and Use Tax Permit

You cannot issue a resale certificate without a valid Texas Sales and Use Tax Permit.¹ Without one, a seller has no way to verify your eligibility, and you cannot lawfully claim the exemption.

There is no fee to apply, though the Comptroller may require a security bond depending on your circumstances. The application is Form AP-201, and it asks for identifying information about you and the business:²

Social Security Number for sole proprietors, or a Federal Employer Identification Number for partnerships, LLCs, corporations, and other entities.³
A six-digit NAICS code describing your primary business activity.
Names, home addresses, SSNs or FEINs, and ownership percentages for all general partners, officers, or managing members.
An estimate of your monthly taxable sales, which the Comptroller uses to assign your filing frequency of monthly, quarterly, or annually.⁴

How to Submit the Application

The fastest route is the Comptroller’s eSystems portal, which is the secure online hub for Webfile and other tax tools.⁵ Online applications typically take two to three weeks to process.⁶ You can also file on paper by downloading Form AP-201 and either emailing or faxing it to the Comptroller’s sales applications office; paper takes longer.

Once approved, you receive a physical permit in the mail with an eleven-digit taxpayer number.⁷ That number goes on every resale certificate you issue. The permit stays active indefinitely unless you close the business or the Comptroller revokes it. You can verify any permit’s status through the Comptroller’s Sales Taxpayer Search tool online.

Step 2: Fill Out Form 01-339

With your permit in hand, download Form 01-339 (Texas Sales and Use Tax Resale Certificate / Exemption Certification) from the Comptroller’s website.⁸ The resale portion of the form asks for:⁹

Your full legal business name and physical address, exactly as they appear on your tax permit.
Your eleven-digit Texas Sales and Use Tax Permit number.
The name and address of the seller you are buying from.
A description of the items you are purchasing for resale, or a reference to an attached invoice.
A brief description of the type of business you run or the products you normally sell.
Your signature and date, affirming the items will be resold, leased, or rented within the United States, its territories, or Mexico.

A cautious seller can refuse a form that is missing any of these fields and charge you 6.25 percent state sales tax plus any applicable local tax, which brings the combined rate as high as 8.25 percent.⁴ Out-of-state retailers without a Texas permit can enter their home state’s registration number, and Mexico-based retailers can use their Federal Taxpayers Registry (RFC) number instead.⁹

Hand the Certificate to Your Supplier

The completed certificate goes directly to the seller. The Comptroller does not receive or file individual resale certificates, and the form itself carries the instruction: “Do not send the completed certificate to the Comptroller of Public Accounts.”⁹ The exchange is a private agreement between buyer and seller.

All gross receipts are presumed taxable unless the seller holds a properly completed resale or exemption certificate from the buyer.¹⁰ Both sides share responsibility for using the certificate correctly.

Single-Purchase vs. Blanket Certificates

If you buy from a supplier only once, issue a single-purchase certificate covering that specific transaction. If you buy the same types of inventory from a supplier on a regular basis, Texas allows a blanket resale certificate that covers all future qualifying purchases from that seller.¹¹ The certificate should state that all purchases from that vendor will be resold in the regular course of business.

Under the Texas Administrative Code, a blanket certificate stays in effect until the purchaser revokes it in writing.¹⁰ If your permit number, address, or business structure changes, issue an updated certificate to each vendor so their records match.

Who Actually Qualifies

Texas Tax Code Section 151.151 allows a purchaser to issue a resale certificate when acquiring a taxable item the purchaser intends to sell, lease, or rent in the regular course of business, or to transfer as part of a taxable service performed in the regular course of business.¹² In practice, you qualify if you run a business that buys inventory or materials and resells them to customers, whether as a retailer, wholesaler, or service provider incorporating taxable items into what you sell.

The certificate is not available for personal purchases. It applies only to items your business genuinely plans to resell.

What You Owe When Inventory Gets Used, Not Sold

A resale certificate exempts only items you actually resell. If you pull something out of your inventory and use it yourself, even for business purposes, you owe sales tax on that item. If you stock brooms for resale but start using one to sweep your store, tax is due on that broom.¹¹

You can calculate the tax on either the price you paid for the item or its fair market rental value for the time you used it, and you report the amount on the taxable purchases line of your sales tax return.¹¹

Penalties for Misuse

Using a resale certificate to dodge sales tax on items you know are for personal use is a criminal offense. Severity scales with the amount of tax avoided:¹³

Less than $750 in avoided tax: ranges from a Class C misdemeanor to a Class A misdemeanor, depending on the amount.
$750 to less than $20,000: third-degree felony.
$20,000 or more: can rise to a second-degree felony.

The statute reaches intentionally making a false entry on a resale or exemption certificate, presenting a certificate you know is fraudulent, and concealing or tampering with a certificate to impede its availability.¹³ Beyond criminal charges, the Comptroller can assess the unpaid tax plus penalties and interest on any transaction where the exemption was improperly claimed.

Records to Keep

Texas requires you to keep all sales and use tax records, including resale certificates you have accepted from buyers, for at least four years, unless the Comptroller gives written permission for earlier destruction.¹⁴ If you sell to another business and cannot produce that buyer’s certificate during an audit, the sale is presumed taxable and you can be held liable for the uncollected tax.

As a buyer, keep your own copies too. Store certificates alongside the corresponding purchase orders or invoices, scanned or on paper, so you can match them quickly if a supplier loses the original or an auditor asks.

1
Comptroller of Public Accounts. Texas Sales and Use Tax Frequently Asked Questions – Obtaining a Sales Tax Permit
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Texas Comptroller. Form AP-201 Texas Application for Sales and Use Tax Permit
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Internal Revenue Service. Employer Identification Number
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Texas Comptroller of Public Accounts. Sales and Use Tax
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Texas Comptroller of Public Accounts. File and Pay
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Texas Comptroller of Public Accounts. Texas Online Tax Registration Application
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Texas Comptroller of Public Accounts. Permits, Licenses and Tax Accounts
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Comptroller of Public Accounts. Texas Sales and Use Tax Forms
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Texas Comptroller of Public Accounts. 01-339 Sales and Use Tax Resale Certificate / Exemption Certification
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Cornell Law School (LII). 34 Texas Admin Code 3.285 – Resale Certificate; Sales for Resale
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Comptroller of Public Accounts. Resale – Texas Sales and Use Tax Frequently Asked Questions
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State of Texas. Texas Tax Code Chapter 151
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State of Texas. Texas Tax Code 151.707 – Resale or Exemption Certificate; Criminal Penalty
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Comptroller of Public Accounts. Texas Sales and Use Tax Frequently Asked Questions – How Long Do I Keep My Business Records