To get a resale certificate in Alabama, complete the Alabama Application for Certificate of Exemption (Form ST-EX-A1). Certificates shall be valid for one year. They must be renewed annually before expiration.
An Alabama resale certificate allows a business to buy items without paying sales tax if they will resell them. All businesses selling goods or services in Alabama need an Alabama resale certificate. With this certificate, retailers can buy inventory without paying sales tax because the sales tax is charged to the final customer.
Some Alabama customers are exempt from paying sales tax, like government agencies, nonprofits, and businesses buying inventory for resale. Sellers must collect valid certificates to prove exemptions.
When an out-of-state business buys items to resell to an Alabama customer, Alabama expects the vendor to accept the home-state resale certificate. If the Alabama sale is taxable, the out-of-state seller must collect and remit the tax to Alabama.