Sales Tax Exemption for Resellers: How to Save More on Amazon Orders
Sep 15, 2025
Published by Infinity, Infinity is an all-in-one dropshipping tool for eBay sellers. We deliver hand-vetted, high-margin product leads daily to help sellers grow profitable eBay businesses.
Why Sales Tax Exemption Matters
If you operate a registered business (LLC, S-Corp, etc.), you may qualify for sales tax exemption on items purchased for resale. This can directly increase your margins and streamline your operations as a dropshipper on eBay and Amazon.
State-by-State Resale Certificate Guide
Many states provide an official resale certificate that allows you to buy products tax-free if they’re being resold. Use tools like the Avalara Resale Certificate Guide to determine the exact process for your state.
Next Steps to Register
Check if your state is part of the Multi-State Tax Commission (MTC) or the Streamlined Sales Tax Commission (SST).
If so, download and complete the proper resale certificate form:
Upload your completed certificate to the Amazon Tax Exemption Program dashboard.
Once approved, Amazon will automatically remove sales tax when you purchase items for resale.
Important Disclaimer
This guide is for educational purposes only and does not constitute tax or legal advice. Always consult with a licensed CPA or attorney before making business decisions related to taxation or legal compliance.
Final Thoughts
Sales tax exemption is an often overlooked way to instantly boost profits when dropshipping. Take the time to register your resale certificate, submit it to Amazon, and enjoy the benefits of tax-free inventory sourcing.
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