Resale Certificate in Hawaii (2026)

Key facts

Status

Legal

License required

Yes

Jurisdiction

Hawaii

Last reviewed

2026-04-09

Resale Certificate laws in Hawaii

Businesses in Hawaii can obtain and utilize resale certificates to exempt certain purchases from general excise tax. This exemption applies when the purchased goods or services are intended to be resold as part of the business's ordinary activities. The primary purpose of this mechanism is to prevent the cascading effect of taxes, where the same item would be taxed multiple times along the supply chain from manufacturer to end consumer. The use of a resale certificate places the responsibility on the purchasing business to ensure that the items are indeed resold. Misuse of a resale certificate, such as purchasing items for personal use without paying the applicable tax, can lead to penalties. Businesses are generally required to maintain accurate records of all transactions where a resale certificate was used, which may be subject to audit by state tax authorities. The process typically involves an application to the state tax division and adherence to specific record-keeping requirements. It's important for both sellers and purchasers to understand their obligations. Sellers who accept a valid resale certificate are generally relieved of the obligation to collect the tax on that specific transaction, but they must ensure the certificate is properly completed and maintained. Purchasers, in turn, must be prepared to demonstrate that the items bought tax-exempt were indeed resold, orface potential tax liabilities and penalties.

Frequently asked questions

What are the Resale Certificate requirements in Hawaii?

In Hawaii, resale certificate status is legal. Businesses in Hawaii can obtain and utilize resale certificates to exempt certain purchases from general excise tax. This exemption applies when the purchased goods or services are intended to be resold as part of the business's ordinary activities. The primary purpose of this mechanism is to prevent the cascading effect of taxes, where the same item would be taxed multiple times along the supply chain from manufacturer to end consumer. The use of a resale certificate places the responsibility on the purchasing business to ensure that the items are indeed resold. Misuse of a resale certificate, such as purchasing items for personal use without paying the applicable tax, can lead to penalties. Businesses are generally required to maintain accurate records of all transactions where a resale certificate was used, which may be subject to audit by state tax authorities. The process typically involves an application to the state tax division and adherence to specific record-keeping requirements. It's important for both sellers and purchasers to understand their obligations. Sellers who accept a valid resale certificate are generally relieved of the obligation to collect the tax on that specific transaction, but they must ensure the certificate is properly completed and maintained. Purchasers, in turn, must be prepared to demonstrate that the items bought tax-exempt were indeed resold, orface potential tax liabilities and penalties.

How do I obtain a Resale Certificate in Hawaii?

Hawaii requires a Resale Certificate. Contact the relevant state agency for application details and testing locations.

Can I use my out-of-state Resale Certificate in Hawaii?

Hawaii generally recognizes out-of-state credentials through reciprocity agreements, but you must transfer your resale certificate within 30 days of establishing residency. Check with the state agency for specific reciprocity details.

What are the penalties for resale certificate violations in Hawaii?

Penalties for resale certificate violations in Hawaii vary based on the specific offense. Verify current penalties with official state resources.