Do I need a reseller license to sell on eBay?

The short answer, and why it splits in two

“Reseller license” hides two different questions. The first is whether you need a state seller’s permit to sell. The second is whether you need a resale certificate to buy stock without sales tax. They have different answers, and the tool above separates them.

On the selling side, eBay says that in jurisdictions where it is required to collect Internet Sales Tax it collects and remits the tax on your behalf, the buyer pays it, and you do not need to take any action; its seller center put the number at 46 jurisdictions as of July 1, 2021. That does not by itself settle whether you must register with the state. The state decides that, and the states split: of the 37 states where our records show a marketplace facilitator law and a seller rule, 24 say a marketplace-only seller does not register, 2 (Nebraska and South Dakota) say it still does, 8 turn on your facts, and 3 did not state the rule in the sources we read.

The buying side

If you want to skip sales tax on wholesale stock, you need a resale certificate, and in most states you need a state tax account before one is valid. eBay lists the documents it asks for state by state and says tax-exempt buyers such as resellers can submit certificates to eBay and buy without paying tax. It also says the documentation can vary from one jurisdiction to another. The full list is in the resale certificate requirements table.

Worked example (hypothetical numbers)

Dana lives in Ohio and flips sneakers on eBay only, shipping nationwide. She buys 40 pairs at $55.00 wholesale, an invoice of $2,200.00. Her tool result says Ohio does not require a marketplace-only seller to register, so she does not need a permit just to list. But she wants to buy the stock tax-free. eBay’s Ohio entry pairs the exemption form with a vendor’s license, so she registers first, then issues the certificate. At an assumed 7% combined rate that saves $154.00 on the invoice. If she starts selling at weekend markets, the rule changes: those sales are not collected by eBay, so she must collect tax on them herself.

Edge cases and common mistakes

• Thinking the permit makes inventory tax-free. It does not. The Texas Comptroller says a permit number is not a substitute for a resale certificate.
• Assuming “eBay collects” means “I owe nothing.” eBay lists paying income tax on eBay sales among your responsibilities. The tax eBay collects is sales tax from the buyer; your profit is still income.
• Ignoring other channels. A craft fair, a Shopify store or a marketplace that does not collect for you is outside eBay’s collection. Passing a state’s sales or transaction threshold there can require you to register.
• Using a resale certificate for personal buys. Washington treats personal or household purchases as misuse, with the tax due plus a 50% penalty.
• Expecting a Form 1099-K only above $20,000. eBay says the federal test is more than $20,000 and more than 200 transactions, with a lower threshold in Arkansas, the District of Columbia, Illinois, Maryland, Massachusetts, Missouri, Montana, New Jersey, Vermont and Virginia. Income is reportable without a form either way.

Who this is for, and what it does not cover

It is for individuals and small businesses selling physical goods on eBay in the United States who want a plain answer for their state. It does not cover sales tax rates, income tax, local business licenses, selling to buyers outside the United States, or Canadian GST/HST. It cannot tell you whether a specific permit is active; the Texas, New York and Washington guides link the official verifiers. For the tax on your profit after fees, see the series pages 1099-K for resellers and do you pay taxes on reselling, and for fees the eBay fee calculator.

Sources

• eBay Seller Center: Tax information — eBay collects and remits Internet Sales Tax; resale certificates; 1099-K thresholds
• eBay Help: Paying tax on eBay purchases — buyer exemption program; documents by state; no-tax states
• Streamlined Sales Tax: Marketplace sellers chart — state rules for marketplace sellers (Nebraska registration)
• Texas Comptroller: resale certificate FAQ — a permit number is not a substitute for a certificate
• Washington DOR: Reseller permits — misuse list and 50% penalty
• IRS: Understanding your Form 1099-K — reporting threshold; report income with or without a form

All figures and rules above were retrieved October 2026. Agencies and platforms revise forms and thresholds, so confirm anything that affects a sale or a return against the current official page.