In Alabama, a resale certificate is officially called a Sales Tax License. A business with an Alabama sales tax account can give its license to a supplier to document a qualifying purchase for resale. Alabama does not issue sales tax licenses to remote businesses with no Alabama business location, so a remote seller generally uses its home-state resale certificate for a qualifying Alabama drop-shipment purchase instead.
A different document, the Alabama Sales Tax Certificate of Exemption, is for eligible purchasers that are not required to hold an Alabama Sales Tax License. The Alabama Department of Revenue issues these certificates after application; they are generally valid for one year and must be renewed. The right document depends on who is buying, what is being purchased, and whether the claim is for resale or another exemption.
What Alabama calls a resale certificate
Alabama’s Department of Revenue calls the resale credential a “Sales Tax License.” A licensed Alabama retailer may use its license to support purchases of inventory for resale, rather than paying sales tax to its supplier and then collecting tax again on the retail sale. The license is tied to the business’s Alabama sales tax account; it is not a general exemption for the business’s operating expenses.
Do not confuse a Sales Tax License with a Sales Tax Certificate of Exemption. The latter is for qualifying people or entities that are not required to have a Sales Tax License and seek an exemption for eligible purchases. A buyer should give the supplier the document that matches the legal basis for the purchase, and the supplier should retain appropriate documentation.
Choose the right Alabama certificate for your purchases
If your business is registered for Alabama sales tax and is buying goods that it will resell, the relevant credential is its Sales Tax License. A resale claim applies to goods acquired for resale in the ordinary course of business; it does not automatically cover equipment, office supplies, or other items the business will use itself.
If you are not required to hold an Alabama Sales Tax License but qualify for a statutory or product-based exemption, apply for the Alabama Sales Tax Certificate of Exemption. The Department’s application routes include ST: EX-A1 for wholesalers, manufacturers, and other product-based exemptions, and ST: EX-A1-SE for statutorily exempt entities. Eligibility and supporting documents depend on the exemption claimed, so confirm the current instructions before applying or presenting a certificate.
How to apply for an Alabama resale or exemption certificate
To obtain an Alabama Sales Tax License, register for the appropriate sales tax account through My Alabama Taxes (MAT), the Department’s online tax system. Provide accurate business and ownership information and follow the current registration steps. The license is associated with the sales tax account; it is not the same application as an exemption certificate.
For an exemption certificate, select the application that fits your eligibility. The Department directs applicants for ST: EX-A1 to complete the form and mail it to the appropriate Taxpayer Service Center listed in the instructions. For ST: EX-A1-SE, the Department provides an online application route through MAT and also lists submission options in its current instructions. Include the requested business details and supporting documentation. The Department reviews the application and notifies the applicant; submitting a form does not itself establish that the exemption has been approved.
Check certificate validity and renew before it expires
An Alabama Sales Tax Certificate of Exemption is valid for one year from its issue date. The Alabama Department of Revenue says it must be renewed annually before the end of the month in which it expires. If it expires without renewal, the holder may not make tax-exempt purchases or rent tax-exempt accommodations under that certificate after expiration.
Check the expiration date printed on the certificate and keep a renewal reminder well ahead of the deadline. The Department says a holder with an application on file that is less than three years old and whose information remains current may request renewal by email; otherwise, submit a new application as directed. Confirm the current renewal process and any documentation requirements with the Department. Do not assume that a supplier’s old copy remains valid after the certificate expires.
How to print or retrieve your certificate
For an Alabama Sales Tax License, sign in to MAT, open the appropriate tax account, and use the “Print tax account license” link. Save a copy for your records and provide the supplier with the license information needed to document a qualifying resale purchase.
An exemption certificate is a separate document issued after the Department approves the application. Keep the issued certificate and its expiration details in your records. If you cannot locate it, or need a replacement copy, contact the Alabama Department of Revenue or use the current MAT account options; the available retrieval steps can depend on the certificate type and account. Do not substitute a sales tax license for an exemption certificate, or vice versa.
Using out-of-state resale certificates for Alabama sales
Alabama does not issue Sales Tax Licenses to remote businesses that have no business location in Alabama. For a drop-shipment transaction, the Department treats the sale from the supplier to the reseller and the reseller’s sale to the Alabama customer as separate transactions. The Department’s stated position is that the supplier should accept the reseller’s home-state-issued resale certificate when the reseller buys goods for resale to an Alabama customer and the goods are shipped directly to that customer.
This does not make the customer’s sale automatically exempt. If the remote reseller’s sale to the Alabama customer is taxable, the reseller remains responsible for collecting and remitting the applicable Alabama tax when required. Keep the home-state certificate and transaction records, and confirm the current Alabama treatment if the facts differ from a straightforward resale drop shipment.
Which sales are exempt from Alabama sales tax or SSUT
Alabama’s Simplified Sellers Use Tax (SSUT) is a flat-rate alternative for eligible remote sellers. It avoids local rate lookups for participating sellers, but it does not turn taxable sales into exempt sales. The Department describes SSUT as applying to taxable products and services sold into Alabama by an eligible seller, subject to exceptions such as a resale certificate, an Alabama exemption certificate, or an Alabama direct pay permit presented to the seller or marketplace facilitator.
Whether a sale is exempt depends on the product or service, the purchaser, and the legal basis for the exemption. A resale purchase supported by appropriate documentation is different from a sale to an exempt entity, and neither should be assumed from the buyer’s business status alone. Certain vehicle and other transactions subject to collection by a licensing official are not handled through SSUT in place of that tax. Check the Department’s current exemption and SSUT guidance for the specific transaction; if the facts are unclear, ask the Department or have a compliance professional review them.
Know when Alabama sellers must register and collect tax
Businesses with an Alabama presence or other Alabama tax obligations should determine whether they must register for a sales tax account through MAT and collect Alabama tax on taxable sales. Alabama is a home-rule state: local jurisdictions administer their own taxes, so a seller using ordinary sales tax may need to account for applicable local requirements as well as state tax.
SSUT offers an alternative for eligible sellers making sales from outside Alabama without physical presence who are not otherwise required to collect under the applicable law. It uses a flat rate and removes the need for participating sellers to look up local rates, but eligibility is fact-specific. Review the Department’s current SSUT criteria and registration instructions before choosing that route. Inventory, business activities, marketplace arrangements, and the nature of sales can affect the analysis.
Meet Alabama filing deadlines and avoid penalties
SSUT returns and payments are due electronically by the 20th day of each month for tax collected in the preceding month, as stated by the Alabama Department of Revenue. Use the Department’s current MAT instructions to file and pay, and verify the account’s assigned filing obligations rather than assuming that every Alabama tax account follows the same schedule.
For other Alabama sales tax accounts, filing frequency and due dates can depend on the account and current Department requirements. Check the filing frequency shown in MAT and the Department’s current calendar. File required returns even when there is no tax due if the account instructions require a return. Late or missing returns and payments can lead to penalties or interest; timely reconciliation of sales, exemptions, marketplace activity, and tax collected helps reduce avoidable errors.
Get help managing certificate applications and renewals
Certificate work involves more than filling in a form: a business must identify the correct certificate, support the exemption claim, track expiration dates, and retain records that connect each certificate to the relevant purchases. For sellers operating across state lines, the same process may need to distinguish Alabama resale documentation from exemption certificates issued for other purposes.
Sales Tax Compliance USA is a done-for-you sales tax service staffed by people, not a software product. We can help review your Alabama registration and certificate needs, prepare application information, organize renewal reminders, and coordinate filing and compliance work. The right treatment depends on your facts, and we do not promise a particular tax outcome; where a rule or eligibility question is uncertain, we will help you confirm it with the Alabama Department of Revenue.
Not sure how this applies to your business? We handle US sales tax registration, filing and remittance for ecommerce sellers as a fully managed service, for one fee. Book a free consultation and we will review your own position with you.
How Alabama resale, exemption, and SSUT treatment differ by transaction
| Situation | Alabama treatment and practical action |
|---|---|
| Alabama-registered retailer buys inventory for resale | Use the business’s Alabama Sales Tax License to document a qualifying resale purchase; do not use it to exempt items the business will consume. |
| Eligible purchaser is not required to hold an Alabama Sales Tax License | Apply for the appropriate Alabama Sales Tax Certificate of Exemption: ST: EX-A1 or ST: EX-A1-SE, depending on the exemption category. |
| Remote reseller buys goods drop-shipped to an Alabama customer | Alabama’s stated position is that the supplier should accept the reseller’s home-state resale certificate for the qualifying resale purchase; the reseller must separately assess tax on its customer sale. |
| Eligible remote seller uses SSUT | Collect and remit SSUT on taxable sales covered by the program; the flat-rate approach avoids local rate lookups, but documented exemptions and program eligibility still matter. |
| Sale involves a vehicle or other item collected through a licensing official | SSUT is not a substitute for tax collected by the licensing official; check the transaction-specific Alabama requirements. |
| Exemption certificate is nearing expiration | Alabama exemption certificates are valid for one year and require annual renewal before the end of the expiration month; confirm current renewal instructions. |
Frequently asked questions
What is Alabama’s resale certificate called?
Alabama officially calls its resale credential a Sales Tax License. It is associated with an Alabama sales tax account and supports qualifying purchases for resale. Alabama does not issue these licenses to remote businesses with no Alabama business location.
How do I get an Alabama resale certificate?
Register for the appropriate Alabama sales tax account through My Alabama Taxes (MAT), following the Alabama Department of Revenue’s current registration instructions. The Department calls the resulting resale credential a Sales Tax License. Remote businesses without an Alabama location generally cannot obtain an Alabama Sales Tax License.
How do I print or get a copy of my Alabama resale certificate?
Sign in to MAT, open the relevant tax account, and select “Print tax account license.” If you cannot access the account or the link is unavailable, contact the Alabama Department of Revenue for current account-specific help.
How do I apply for an Alabama sales tax exemption certificate?
Choose the application that matches your exemption category, provide the requested information and supporting documents, and submit it using the Department’s current instructions. ST: EX-A1 applications are mailed to the appropriate Taxpayer Service Center; ST: EX-A1-SE applications have an online MAT route and additional submission instructions from the Department.
Which form do I use to apply for an Alabama exemption certificate?
Use Form ST: EX-A1 for wholesalers, manufacturers, and other product-based exemptions. Use Form ST: EX-A1-SE for statutorily exempt entities. Confirm the current form and instructions on the Alabama Department of Revenue website before submitting.
How long is an Alabama exemption certificate valid?
The Alabama Department of Revenue states that a Sales Tax Certificate of Exemption is valid for one year from its issue date. It must be renewed annually before the end of the month in which it expires. An expired certificate cannot support tax-exempt purchases after expiration.
Does Alabama accept an out-of-state resale certificate?
For a qualifying drop shipment, Alabama’s stated position is that the supplier should accept the reseller’s home-state-issued resale certificate when goods are purchased for resale to an Alabama customer and shipped directly to that customer. The reseller must separately determine whether its sale to the Alabama customer is taxable and collect and remit tax when required.
What sales are exempt from Alabama sales tax or SSUT?
Exemption depends on the transaction and the applicable legal basis, such as a documented resale, an Alabama exemption certificate, or a direct pay permit. SSUT applies to taxable sales by eligible participating remote sellers; it does not make otherwise taxable sales exempt. Check the Alabama Department of Revenue’s current guidance for the specific product, purchaser, and transaction.
How we handle this for you
Because Alabama is a home-rule state, local jurisdictions there can administer and audit their own tax separately from the state, which is where doing this yourself usually stops being viable. We are a managed service: our team registers you with the Alabama Department of Revenue, 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 Alabama.
Official sources
- https://www.revenue.alabama.gov/faqs/what-guidance-is-there-for-vendors-drop-shipping-into-alabama-and-remote-sellers/
- https://www.revenue.alabama.gov/faqs/how-do-i-obtain-a-certificate-of-exemption/
- https://www.revenue.alabama.gov/faqs/how-do-i-apply-for-an-exemption-certificate/
- https://www.revenue.alabama.gov/wp-content/uploads/2025/08/How-to-apply-online-for-an-ST-EX-A1-SE.pdf
- https://www.revenue.alabama.gov/wp-content/uploads/2025/08/How-to-apply-online-for-an-ST-EX-A1.pdf
- https://www.revenue.alabama.gov/sales-use/simplified-sellers-use-tax-ssut/
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.