New York Resale Certificate: How to Get, Use, and Accept One

What is a New York resale certificate?

A New York resale certificate lets a registered buyer purchase property or services without paying sales tax when the buyer plans to resell them. Buyers document the exemption with Form ST-120, Resale Certificate. The certificate gives the seller evidence that the transaction qualifies for resale treatment. These rules reflect New York guidance as of September 2026.

Which form do New York sellers and buyers use?

New York buyers must use Form ST-120, Resale Certificate, for qualifying resale purchases. New York gives no exemption value to resale certificates issued by other states or countries. Multistate certificates also do not replace ST-120 under New York’s exemption certificate rules. Sellers should collect the completed New York form.

How do I fill out Form ST-120?

A buyer downloads Form ST-120 from the New York Department of Taxation and Finance, completes it, signs it, and gives it to the seller. The form is free to download, and the seller keeps the completed certificate on file.

Under TB-ST-240, every certificate must include the date prepared, the purchaser's name and address, the seller's name and address, the purchaser's Certificate of Authority identification number, and the purchaser's or an authorized representative's signature. The buyer also marks single-use or blanket, and selects the type of purchase in Part 1 for registered New York vendors or Part 2 for out-of-state purchasers.

Who can issue a New York resale certificate?

A New York-registered vendor with a valid Certificate of Authority may issue Form ST-120 for goods or services purchased for resale. Covered purchases include tangible property, property incorporated into a taxable service, services for resale, and restaurant-type or heated food and drink for resale.

Qualifying out-of-state purchasers may use ST-120 when registered elsewhere and the seller delivers goods to their customer or a New York fulfillment provider. They may also use it for resale through a business outside New York. Contractors cannot use ST-120. They must use ST-120.1, use a direct payment permit, or pay tax.

What is the difference between a single-use and a blanket resale certificate?

A buyer marks Form ST-120 as “blanket” to cover ongoing purchases of the same general type from one seller. An unmarked certificate applies to a single purchase. Temporary vendors cannot issue blanket certificates under the Form ST-120 instructions. A blanket certificate has no fixed expiration date.

Does a New York resale certificate expire?

Form ST-120 has no fixed expiration date. A blanket certificate remains valid while the purchaser continues making exempt purchases of the same general type from that seller.

The purchaser must provide an updated certificate when its address, identification number, or other information changes. The seller may also request a new certificate at any time under New York guidance. The separate 90-day rule governs when the seller receives the certificate after a transaction, not when the certificate expires.

How long does a seller have to accept a resale certificate in good faith?

A seller has 90 days after delivering the property or performing the service to receive the certificate. The seller accepts it in good faith when the seller has no knowledge of fraud and exercises reasonable due care. A properly completed, timely certificate protects the seller from tax liability under Form ST-120.

After 90 days, both parties must prove the exemption, and New York may require more documentation. A timely certificate with errors remains satisfactory if the buyer corrects them within a reasonable period. A seller may refuse a valid certificate but must charge sales tax.

How long must a seller keep a resale certificate on file?

A seller must keep each resale certificate for at least three years after the related return’s due date or filing date, whichever comes later. For a blanket certificate, the retention period starts with the due date of the return that reports the last covered sale. The seller’s records must connect each exempt invoice to the certificate on file.

What happens if a seller accepts a sale without a valid resale certificate?

New York deems sales without a valid resale certificate taxable retail sales, and the seller must prove any claimed exemption. A seller with $250,000 in unsupported resale sales faces $10,000 in state tax at New York’s 4% rate. Local tax can increase that amount. Penalties and interest may also apply to the unpaid tax. The seller carries this exposure because it failed to collect tax or document the exemption.

What penalties apply for misusing a New York resale certificate?

A purchaser who misuses Form ST-120 may owe a penalty equal to 100% of the tax due, plus $50 for each fraudulent certificate. Misuse can also lead to felony prosecution and revocation of the purchaser’s Certificate of Authority under Form ST-120. These penalties apply to the purchaser, while a seller may remain liable for uncollected tax.

An unregistered vendor may owe up to $500 for the first day and up to $200 for each additional day, capped at $10,000. New York lists related consequences in TB-ST-805.

How can a multistate seller manage resale certificates and sales tax in every state?

A multistate seller needs two things for every exempt sale: a valid certificate matched to the invoice, and a tax calculation that applies each state's rules when no certificate is on file. New York's 90-day window and three-year retention rule are one state's version of a requirement each state sets on its own terms.

Taxwire's tax engine calculates tax on each invoice from product type, customer location, and jurisdiction rules, inside QuickBooks Online, Stripe, NetSuite (SuiteTax), Campfire, and Rillet. Sellers on other systems can send transaction data by CSV upload for filing. Taxwire prepares and files returns in each state where you collect, and handles new registrations when you cross a threshold in another state.

When a review finds unsupported exempt sales from prior years, Taxwire files the prior-period returns and runs voluntary disclosure agreements, which typically cover a three to four year lookback. Implementation takes one week, and support responds in under an hour.

What else should buyers and sellers know about New York resale certificates?

Does New York accept another state's resale certificate?

No, New York accepts only its own Form ST-120 for resale purchases. Exemption certificates issued by other states or countries are not valid for New York State and local sales tax under TB-ST-240. Qualifying out-of-state purchasers use Part 2 of Form ST-120 and list their home-state registration number.

Can a contractor use Form ST-120?

No, contractors cannot use Form ST-120 to buy materials and supplies. A contractor must issue Form ST-120.1, use a direct payment permit, or pay sales tax at the time of purchase. Contractors may be entitled to a refund or credit on materials used to repair or maintain real property when the materials are transferred to the customer.

What if a certificate arrives on time but has an error?

A seller can treat it as satisfactory if the error is corrected within a reasonable period. The certificate must still be in the seller's possession within 90 days of the transaction under Form ST-120. A certificate that arrives after 90 days shifts the burden of proving the exemption onto both the buyer and the seller.

Can a seller refuse a valid resale certificate?

Yes, a seller can refuse a certificate even when it is correct and properly completed under TB-ST-240. A seller that refuses must charge sales tax. The buyer can then apply to New York for a refund using Form AU-11.