Massachusetts resale certificate and sales tax for resellers
A summary of what the sources listed on this page say about Massachusetts: its permit and resale certificate, buying inventory for resale, and refunds of sales tax paid on inventory. General information only.
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Last reviewed
Every fact on this page comes from the sources listed below, as they read on the review date. Where a source did not say something, we leave it out. Sources can change after that date.
Massachusetts quick facts
What the sources listed below say. Rules change, and how they apply depends on the facts of each case.
- State base sales tax rate
- 6.25%[1]
- Resale certificate
- Form ST-4 (Sales Tax Resale Certificate)[1]
- Certificate expiry (as listed)
- No expiry listed in the source[1]
- Permit or registration
- Massachusetts vendor registration (Sales and Use Tax Registration Certificate, Form ST-1)[1]
- Online application offered
- Yes[5]
- Where to apply
- State application page[5]
- Certificate form
- State certificate form[3]
Keep each purchase receipt linked to the items it covers. Get the app
What the state says about its permit and resale certificate
The state calls the registration associated with buying for resale and collecting tax a Massachusetts vendor registration (Sales and Use Tax Registration Certificate, Form ST-1).[1] The state says it offers an online application.[5] State application page.[5]
The resale certificate the state lists is Form ST-4 (Sales Tax Resale Certificate). The source cited lists no expiry.[1] The state's certificate form asks for a permit or registration number.[2] State certificate form.[3]
What the state says about buying inventory for resale
Out-of-state buyers
Per the regulation, a business with Massachusetts nexus cannot accept a resale certificate from a customer without Massachusetts nexus, but may instead accept a signed letterhead statement from the customer made under the pains and penalties of perjury.[1]
Other points the sources mention
- Form ST-4 is the resale certificate, and the regulation requires it to carry the purchaser's name, address and registration number. A seller can confirm a customer's sales and use tax registration and resale certificate online in MassTaxConnect.[12]
- Massachusetts treats casual and isolated sales, such as a homeowner selling used appliances or infrequent yard sales, as exempt from sales tax. The state describes these as infrequent and nonrecurring sales by people or businesses that do not regularly make such sales.[1]
- Per the regulation, using an item bought on a resale certificate for anything other than holding, demonstrating or displaying it for sale is treated as a retail sale by the purchaser.[2]
- Clothing costing $175 or less per item is exempt, and tax applies only to the part of the price over $175.[1]
What the state says about refunds of sales tax paid on inventory
Some states let a purchaser request a refund of sales tax paid on items bought for resale, and some direct the request to the seller. Whether and how that applies depends on the facts of each purchase. This section reports what the sources say for Massachusetts. According to the state's information, a purchaser who paid sales tax to a seller is pointed to the seller first. The state describes a purchaser filing directly only with a seller-signed assignment or waiver, or proof that the seller refused.[6]
- Who files, per the state
- Seller first, per the state[6]
- Refund form named by the state
- Form ABT (Application for Abatement)[6]
- How the state says to submit
- The state describes asking the vendor first, or filing an abatement with the vendor's power of attorney[6]
- Time limit the state describes
- Generally 3 years[6]
Massachusetts calls refunds abatements. According to TIR 16-12, a purchaser asks the vendor for a refund, or files an abatement with the vendor's power of attorney. G.L. c. 62C, s. 37 sets the abatement application deadline at 3 years of the return filing date, 2 years of the assessment, or 1 year of payment, whichever is later.[6]
Illustration: the Massachusetts state base rate applied to an amount you enter
Enter an amount to see an illustration.
Illustration only. It applies the 6.25% state base rate to the amount entered, and assumes that amount is before tax. It leaves out local taxes, exemptions and every other rule, which can change the result. It is an estimate for illustration, not a tax calculation or a prediction of any amount owed, deductible or refundable.
Not tax advice. Last reviewed . Confirm with the state agency or a qualified tax professional. Report an error
Keep each purchase receipt linked to the items it covers
Strooply is an app for eBay resellers that identifies items from photos, shows live comps and sold-price estimates, drafts eBay listings for your review, and tracks costs and profit.
Receipt scanning, on Pro and Team plans, links each purchase receipt to the items it covers, with the tax shown on the receipt. It can misread prices, dates or line items.
Strooply is record-keeping software. It does not prepare or file tax returns, refund claims, or other filings, it is not a tax preparer, and its figures are estimates to check against your own records.
A free plan is available.
Common questions and what the sources say
Do I need a sales tax permit to sell on eBay in Massachusetts?
Massachusetts says marketplace sellers are generally not responsible for the tax on their Massachusetts sales that a marketplace facilitates, if the marketplace is to collect and remit it and the seller receives in good faith a marketplace facilitator collection certificate saying so. A vendor generally includes anyone who sells tangible personal property in Massachusetts, and vendors register with the Department of Revenue through MassTaxConnect.[14]
How do I get a Massachusetts resale certificate?
Massachusetts vendors register in MassTaxConnect, and the purchaser then completes Form ST-4 and gives it to the seller. The regulation defines the certificate as certifying that the goods are bought for resale in the regular course of business, and requires the purchaser's name, address and registration number. The regulation has sellers keep it as proof that the sale was exempt.[125]
Does a Massachusetts resale certificate expire?
The Massachusetts sources reviewed do not state an expiration date for Form ST-4. They do say that resale certificates are invalid for the sale or purchase of tobacco products.[1]
Not tax advice. Last reviewed . Confirm with the state agency or a qualified tax professional. Report an error
Where these facts come from
Each number in square brackets on this page matches an entry below. Check a source itself for its current wording.
- Mass.gov Sales and Use Tax guide, www.mass.gov/guides/sales-and-use-tax
- 830 CMR 64H.8.1 Resale and Exempt Use Certificates, www.mass.gov/regulations/830-CMR-64h81-resale-and-exempt-use-certificates
- Form ST-4 Sales Tax Resale Certificate, www.mass.gov/doc/form-st-4-sales-tax-resale-certificate/download
- Remote Seller and Marketplace Facilitator FAQs, www.mass.gov/info-details/remote-seller-and-marketplace-facilitator-faqs
- Tax Information for New Businesses, www.mass.gov/info-details/tax-information-for-new-businesses
- Form ABT (Application for Abatement), state refund form, www.mass.gov/doc/application-for-sales-tax-abatement/download