In plain English
They come from different places and do different jobs. The EIN comes from the IRS and identifies the business. The resale certificate is issued or accepted under state rules and relates to sales tax on goods you intend to resell.
Suppliers often ask for both, which is why operators assume they are the same thing.
Example
Your EIN goes on the credit application. Your resale documentation goes to the supplier's tax file.
Why it matters
Getting the two confused is the most common reason a first wholesale account stalls.
COMMON MISTAKEAssuming an EIN alone lets you buy without the supplier collecting sales tax.
Sources
- IRS. Employer Identification Number
- IRS. Apply for an EIN online
- Streamlined Sales Tax Governing Board. Exemption certificate