A Maryland resale certificate lets a business buy qualifying goods or taxable services without paying sales tax at the time of purchase when the purchase is genuinely for resale in a taxable sale. It is a signed statement from the buyer to the seller—not a license issued by the state. Maryland does not require a particular resale-certificate form, but the certificate must include the buyer’s name and address, the buyer’s Maryland sales and use tax registration number, and a signed statement that the purchase is for resale.
To use one, first register for Maryland sales and use tax through Maryland Tax Connect and obtain a valid registration number. Give the certificate to your supplier and keep a copy with the transaction records. Maryland has one statewide sales-tax rate rather than locally administered sales taxes, but its explicit taxation of certain digital products makes classification important for ecommerce, SaaS, and digital-goods businesses. The Comptroller of Maryland administers the tax.
What a Maryland resale certificate is for
A resale certificate documents that you are buying merchandise or a taxable service to resell in a taxable transaction, or buying property that will be incorporated into tangible personal property or used in a service that will be taxed when sold. It allows the seller to treat that purchase as a resale purchase rather than collect sales tax from you at checkout. The certificate does not make your later sale tax-free: you must determine whether that sale is taxable and collect and remit tax when required.
Use the certificate only for purchases that fit the resale purpose stated on it. Items consumed by your business, such as office supplies or equipment used to run your operations, are not resale purchases merely because your business sells other products. If the seller knows or should know that the purchase is not for resale, Maryland law does not allow the seller to accept the certificate for that transaction.
What to include—and whether Maryland has a required form
Maryland does not require a specific resale-certificate form. The Comptroller of Maryland requires the certificate to include a signed statement that the purchase is intended for resale, the purchaser’s name and address, and the purchaser’s Maryland sales and use tax registration number. Make the resale purpose clear and ensure the certificate is signed by someone authorized to act for the business.
Give the certificate to the seller in connection with the purchase and retain a copy. A certificate is not a substitute for registration: the buyer must have a valid Maryland sales and use tax registration number to provide a Maryland resale certificate. If you are unsure whether a particular product or service qualifies as a resale purchase, confirm the treatment with the Comptroller or have a compliance professional review the transaction.
Register for Maryland sales and use tax
Businesses that need to collect Maryland sales and use tax register through Maryland Tax Connect. Registration is the step that establishes your Maryland sales and use tax account and provides the registration number used on a Maryland resale certificate. A resale certificate itself is not obtained as a state-issued document; the buyer prepares the required signed statement and gives it to the supplier.
Whether your business must register and collect depends on its activities and sales. Ecommerce and cross-border sellers should review their Maryland obligations before making taxable sales into the state, including whether their products are taxable and whether their business has a collection obligation. Check current registration instructions and requirements with the Comptroller of Maryland through Maryland Tax Connect; if the facts are not clear, ask for help assessing your circumstances rather than assuming that an out-of-state location removes the obligation.
Resale certificates versus exemption certificates
A resale certificate is used by a buyer that is purchasing for resale in a taxable sale. An exemption certificate is used by an eligible organization to document a separate statutory exemption for qualifying purchases. The documents serve different purposes, and a seller should not treat one as a substitute for the other.
The Comptroller of Maryland issues exemption certificates to specified organizations, including qualifying nonprofit charitable, educational, and religious organizations, volunteer fire companies and rescue squads, nonprofit cemetery companies, government agencies, and credit unions. An eligible organization may use its certificate for tangible personal property used in carrying on its work. The seller should record the organization’s name and exemption-certificate number with the sale. Special rules apply to resale purchases by some exempt organizations; churches, religious organizations, and government agencies may use an exemption certificate for qualifying resale purchases, while other organizations generally need a resale certificate and Maryland sales and use tax license number.
Who qualifies for an exemption certificate
Exemption status is not available simply because a buyer is a nonprofit or has a tax-exempt status for another purpose. Maryland’s sales-tax exemption certificate is issued by the Comptroller to organizations that qualify under Maryland rules, including the categories identified by the Comptroller: nonprofit charitable, educational, and religious organizations; volunteer fire companies and rescue squads; nonprofit cemetery companies; government agencies; and credit unions.
The certificate applies to qualifying purchases within the exemption’s scope, not automatically to every transaction or every item the organization buys. Sellers should check the certificate and the transaction, record the organization’s name and certificate number, and retain the supporting documentation. If the buyer’s eligibility or the intended use is uncertain, confirm the certificate through Maryland Tax Connect or with the Comptroller before treating the sale as exempt.
How to verify a buyer’s Maryland certificate
Maryland Tax Connect provides a sales-tax verification service. Select the appropriate identification type and enter either the buyer’s Maryland Central Registration number or the sales and use tax exemption-certificate number. Use the result to check the relevant registration or exemption status, and keep a record of the verification with the sale.
Verification does not replace your responsibility to assess the transaction. For a resale sale, confirm that the certificate identifies the buyer, includes the required signed resale statement and Maryland registration number, and matches a purchase that is actually for resale. The Comptroller states that sellers should keep resale certificates on file and remain responsible for tax when they know or should know the property is not intended for resale.
When Maryland’s under-$200 resale rule applies
Maryland restricts resale certificates for purchases with a taxable price of less than $200 when the buyer pays by cash, check, or credit card and the seller does not deliver the goods directly to the buyer’s retail place of business. In that situation, the buyer generally cannot use the certificate to avoid tax at the time of purchase. The rule also covers the relevant taxable property and transactions described in Maryland law, including digital codes, digital products, and taxable services.
The Comptroller identifies exceptions: a certificate may be used for a qualifying purchase under $200 when the seller extends credit, when the item would be exempt even if it were not bought for resale, or when the purchase is an alcoholic beverage regulated under Maryland law. Because the rule turns on price, payment method, delivery, and the type of purchase, check the current Comptroller guidance if any detail is unclear. A buyer that paid tax on a qualifying resale purchase may have a refund or return-credit route, subject to the Comptroller’s requirements.
Keep certificates and sales records audit-ready
Keep resale certificates, exemption documentation, invoices, purchase orders, receipts, shipping records, and sales records together so that each tax-exempt or resale transaction can be followed from order to delivery and accounting entry. Maryland requires businesses to keep records pertaining to sales and purchases for four years. Records should distinguish taxable transactions from nontaxable ones and support the tax treatment used.
For exempt-organization sales, retain the organization’s name and certificate number in the sale record. For resale sales, retain the signed certificate and evidence that the goods or services were purchased for resale. For cross-border orders, preserve shipping and delivery documentation that supports the transaction’s destination and treatment. The Comptroller may inspect business records, and the business bears the burden of demonstrating that sales and use tax was handled correctly.
Collect, file, and remit Maryland sales tax
Once registered, collect Maryland sales and use tax on taxable sales for which your business is responsible, report the transactions on the returns assigned to your account, and remit the amount due by the applicable due date. The Comptroller determines filing requirements for the account; use the filing frequency and deadlines shown in Maryland Tax Connect and current Comptroller instructions rather than relying on a general schedule that may not fit your business.
Maryland’s statewide rate does not mean every product is taxed identically. The state explicitly taxes certain digital products, and SaaS treatment can depend on how the product is used and whether it falls within an enterprise computer system. The Comptroller’s technical guidance describes different treatment for certain SaaS transactions. Ecommerce sellers should review product details, customer use, bundles, and sales channels before deciding how to tax digital goods or subscriptions. If the classification is uncertain, confirm it with the Comptroller or have a specialist review it.
Avoid uncollected tax, penalties, and interest
Common compliance problems include accepting an incomplete or unsupported resale certificate, applying an exemption to a purchase outside its scope, overlooking the under-$200 restriction, and treating a digital product or SaaS sale as nontaxable without checking Maryland’s rules. A certificate does not transfer the seller’s responsibility to evaluate the transaction. If the buyer’s documentation is missing or the resale purpose is doubtful, collect tax unless and until the treatment is properly supported.
Review your Maryland product taxability, registration status, certificates, returns, and payment records regularly. If you discover an error, check the Comptroller’s current instructions for correcting returns and paying any balance due; the amount and consequences depend on the facts and applicable rules. Sales Tax Compliance USA is a people-staffed, done-for-you service for ecommerce and cross-border sellers. We can review your Maryland transactions, organize certificate records, and help manage registration, collection, filing, and remittance without promising a particular audit or penalty outcome.
Maryland transaction distinctions that affect whether a resale or exemption document can support tax-free treatment.
| Transaction or buyer situation | Maryland treatment to check |
|---|---|
| Purchase genuinely for resale in a taxable sale | A signed resale certificate may support tax-free purchase treatment when it includes the buyer’s name and address and valid Maryland sales and use tax registration number. |
| Purchase under $200 paid by cash, check, or credit card; not delivered directly to buyer’s retail place of business | A resale certificate generally cannot be used. Check the stated exceptions, including seller credit, an independently exempt item, and specified regulated alcoholic beverages. |
| Qualifying organization buying tangible personal property for its work | An eligible organization may use its Comptroller-issued exemption certificate within its scope; the seller should record the organization’s name and certificate number. |
| Digital product or digital code sale | Maryland explicitly taxes certain digital products. Determine whether the specific product and transaction are taxable and report them in the applicable category. |
| SaaS sale | Tax treatment depends on the product and use. Comptroller guidance distinguishes certain enterprise-computer-system use from other use; review the facts before applying a rate or exemption. |
Frequently asked questions
What is a Maryland resale certificate?
It is a signed statement a buyer gives a seller to document that a purchase is for resale in a taxable sale, or for qualifying incorporation into property or use in a taxable service. It supports tax-free treatment at the time of purchase when the requirements are met; it does not exempt the buyer’s later taxable sale.
How do I get a resale certificate in Maryland?
Register for Maryland sales and use tax through Maryland Tax Connect and obtain a valid Maryland registration number. Then prepare a signed statement with the required buyer details and resale purpose and give it to your supplier. Maryland does not issue a separate resale-certificate form.
What information must a Maryland resale certificate include?
It must include a signed statement that the purchase is intended for resale, the purchaser’s name and address, and the purchaser’s Maryland sales and use tax registration number. Keep a copy with the purchase and sales records.
Is a resale certificate the same as an exemption certificate?
No. A resale certificate documents a purchase for resale in a taxable transaction. An exemption certificate is issued by the Comptroller to qualifying organizations for purchases covered by a separate exemption.
Who qualifies for a Maryland sales-tax exemption certificate?
The Comptroller issues certificates to qualifying organizations that include nonprofit charitable, educational, and religious organizations, volunteer fire companies and rescue squads, nonprofit cemetery companies, government agencies, and credit unions. Eligibility and the certificate’s scope depend on Maryland rules, so verify the buyer and intended purchase.
Does Maryland require a specific resale certificate form?
No. Maryland does not require a specific form, but the certificate must contain the required signed resale statement, purchaser name and address, and Maryland sales and use tax registration number.
Can I use an out-of-state resale certificate in Maryland?
For ordinary resale purchases, Maryland requires a resale certificate bearing a valid Maryland sales and use tax registration number. Maryland law provides a limited provision involving an out-of-state registration number for sales of antiques or used collectibles under specified conditions; do not assume an out-of-state certificate works for other purchases. Confirm the transaction with the Comptroller if it may fall within that narrow provision.
How can I verify a Maryland sales-tax exemption certificate?
Use the verification service in Maryland Tax Connect and enter the exemption-certificate number, selecting the appropriate identification type. The service also allows verification using a Maryland Central Registration number. Retain the verification result and confirm that the purchase itself falls within the exemption.
How we handle this for you
The mechanics in Maryland are manageable on their own; the cost is the time it takes every single filing period, in every state you are registered in. We are a managed service: our team registers you with the Comptroller of Maryland, prepares and files your returns, and keeps you compliant period after period. You get one point of contact and one invoice — you do not get another dashboard to learn.
See our sales tax compliance services, check where you have obligations with the nexus calculator, or talk to us about Maryland.
Official sources
- https://services.marylandcomptroller.gov/taxes/en/purchases-for-resale?id=kb_article_view&sysparm_article=KB0010139
- https://services.marylandcomptroller.gov/taxes/en/tax-exemptions?id=kb_article_view&sysparm_article=KB0010147
- https://mdtaxconnect.gov/rptp/portal/home/Verify_Sales_Tax_Exemption/
- https://www.marylandcomptroller.gov/legal-library/tb-30-jun-2025.html
- https://www.marylandcomptroller.gov/businesses/new-business.html
- https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gtg§ion=11-408&enactments=false
Reviewed by Paul le Roux, CA(SA). Sales Tax Compliance USA handles US sales tax registration, filing and remittance for cross-border and domestic ecommerce sellers as a fully managed service.
This page is general information for educational purposes and does not constitute legal or tax advice. Sales tax rules change and depend on your specific facts. Consult a qualified tax professional about your own position.