Maryland Resale Certificate: How to Get, Use, and Accept One

TL;DR

• Maryland requires no particular resale certificate form.

• A valid resale certificate must include the buyer’s eight-digit Maryland sales and use tax registration number, which starts with 0 or 1.

• Sellers must obtain a signed resale certificate before the sale.

• For sales under $200 paid by cash, check, card, or electronic transfer, sellers may accept a resale certificate only if they deliver the goods directly to the buyer’s retail place of business.

• Sellers have 60 days after the Comptroller mails a notice of intent to assess to obtain missing certificates.

• Businesses must keep sales and purchase records for four years unless the Comptroller permits earlier destruction.

What counts as valid Maryland resale documentation

Maryland requires a signed resale certificate before the sale, but does not require a particular form. The certificate must give the buyer’s name, address, and eight-digit Maryland sales and use tax registration number, which begins with 0 or 1. It must also state that the buyer is purchasing the goods or taxable service for resale.

Maryland is not a Streamlined Sales Tax member, so do not treat a Streamlined Sales Tax certificate as automatically valid Maryland documentation. Judge any form by the details Maryland requires.

How buyers get and use a Maryland resale certificate

1. Confirm the purchase qualifies for resale. You can use a resale certificate when you buy tangible goods, digital products, digital codes, or taxable services to resell them. A purchase for your own business use does not qualify for this Maryland sales tax exemption.

2. Get your Maryland registration number. Register for Maryland sales and use tax and find the eight-digit number on your license or Comptroller-sent returns. Obtain a separate sales and use tax license for each place of business. The number must start with 0 or 1. An out-of-state buyer generally cannot substitute a home-state number or FEIN. Maryland regulations provide a narrow exception for qualifying antiques and used collectibles. For that exception, your signed certificate must state that you do not sell or deliver into Maryland or otherwise have Maryland obligations or meet its economic nexus threshold. You must also provide a home-state sales tax number and license copy, or comparable trader identification if your state has no sales tax.

3. Choose a certificate format. Maryland does not require a particular form. You can generate a certificate through Maryland Tax Connect, use the Comptroller’s suggested blanket certificate, or prepare your own signed document. Your sales and use tax license alone does not serve as a resale certificate.

4. Complete and sign the certificate. Include your name, address, Maryland sales and use tax registration number, and a statement that the goods or taxable services are bought for resale. Give the seller enough information to connect the certificate to your purchase.

5. Give the seller the certificate before the sale. If you paid tax on a purchase that was actually for resale, you can claim a credit on your next sales and use tax return or file a refund claim.

6. Use a blanket certificate for repeat purchases. You can give a seller one blanket certificate and put your Maryland registration number on later purchase orders. The Comptroller’s suggested blanket certificate remains effective until revoked.

7. Pay tax if you use the purchase instead of reselling it. If you take inventory for your own use, the resale exemption no longer applies, and you owe the applicable tax.

How sellers accept and verify a resale certificate

1. Get a signed certificate before the sale. Maryland waives a seller’s duty to collect tax when the buyer supplies a valid resale certificate before the transaction. A sales and use tax license alone does not replace the certificate.

2. Check the required details. The certificate must give the buyer’s name, address, and eight-digit Maryland sales and use tax registration number, which begins with 0 or 1. It must state that the property, digital item, or taxable service is being bought for resale. Do not accept a FEIN or another state’s number in place of the Maryland number.

3. Check whether the purchase is actually for resale. A completed certificate does not protect you when you know or should know the buyer will use the purchase rather than resell it. Ask the buyer to correct unclear documentation before treating the sale as exempt.

4. Apply the small-purchase rule. For a purchase under $200 paid by cash, check, credit card, debit card, or electronic transfer, you cannot accept a resale certificate unless you deliver the goods directly to the buyer’s retail place of business.

5. Check Maryland drop shipments separately. If you are a Maryland-registered seller supplying an unregistered out-of-state vendor and delivering goods into Maryland, require that vendor to register in Maryland and provide a proper resale certificate. Otherwise, collect tax on your selling price to that vendor, even if the goods will be resold.

6. Keep records that connect each sale to its certificate. Obtain a certificate for each transaction, or use a blanket certificate for a repeat buyer and record the buyer’s Maryland number on later purchase orders. Keep sales records for four years unless the Comptroller permits earlier destruction.

7. Collect tax when the documentation remains invalid or incomplete. After the Comptroller mails notice of intent to assess sales without proper certificates, you have 60 days to obtain them. That window does not allow you to accept a certificate for a sale you know or should know was not for resale.

Buyer vs. seller checklist

Common mistakes with Maryland resale certificates

• Using a FEIN or another state’s registration number. For an ordinary Maryland resale purchase, the certificate must show an eight-digit Maryland sales and use tax registration number beginning with 0 or 1. A FEIN, Social Security number, or number containing letters does not qualify under Maryland’s resale rule.

• Treating a license as a certificate. A Maryland sales and use tax license shows the registration number, but the buyer must also provide a signed resale certificate. Maryland requires no particular certificate form.

• Waiting until after the sale. Sellers must obtain the certificate before the sale. Do not treat a later certificate as a substitute for collecting proper documentation at the time of sale.

• Assuming a Maryland drop shipment qualifies. When a Maryland-registered seller delivers to Maryland for an unregistered out-of-state vendor, the seller must obtain that vendor’s Maryland registration and proper certificate or collect tax.

• Using a nonprofit exemption number for resale. Private exempt entities other than qualifying religious organizations must register as vendors to make resale purchases. The religious-organization exception uses an eight-digit exemption number beginning with 29.

Where Taxwire fits for sellers reviewing resale exposure

Taxwire calculates tax at the invoice level using the product category, delivery location, and applicable jurisdiction rules. You still need to decide whether a buyer’s resale documentation supports an exempt sale.

If an audit finds uncollected tax from earlier periods, review the affected sales and determine the reporting steps required. Taxwire's invoice-level calculations do not replace your review of Maryland resale certificates.

FAQs

• Is there an official Maryland resale certificate form? Maryland requires no particular form. The Comptroller provides a suggested certificate, but a buyer can use another signed document that includes the required details.

• Does a blanket certificate expire? Maryland’s suggested blanket certificate remains effective until revoked. The buyer must put its Maryland registration number on later orders covered by the certificate.

• Can an out-of-state buyer use a certificate for antiques or used collectibles? Yes, under a narrow exception. The buyer must sign a certificate stating that it does not sell or deliver into Maryland, otherwise have Maryland tax obligations, or meet Maryland's economic nexus threshold. It must provide its home-state sales tax registration number and a copy of its license, or comparable trader identification if its state has no sales tax.

• Can a FEIN replace the Maryland registration number? No. A FEIN does not qualify as a Maryland resale registration number.

• What is the 60-day notice window? After the Comptroller mails a seller notice of intent to assess sales without proper certificates, the seller has 60 days to obtain them. The seller cannot accept a certificate if it knows or should know the purchase was not for resale.

• How long must sellers keep records? Maryland generally requires sellers to keep sales and purchase records for four years, unless the Comptroller permits earlier destruction.

Sources and disclaimer

• COMAR 03.06.01.14

• COMAR 03.06.03.02

• Suggested Blanket Resale Certificate

• Purchases for Resale

• Business Tax Tip #2

This guide provides general information, not tax advice. Consult the Maryland Comptroller for current guidance.