Arkansas Resale Certificate PDF: Form ST-391 and Blanket Use

To buy inventory tax-free in Arkansas, give your supplier a completed Form ST-391, the state’s Sales and Use Tax Exemption Certificate. The form is a free PDF from the Department of Finance and Administration (DFA), and it only works if you already hold a valid Arkansas Sales and Use Tax Permit. An Arkansas resale certificate shifts the sales tax to the point of final sale, where you collect it from your customer instead. Getting the details right on the form matters more than most business owners realize, because a mistake can leave either party holding the tax bill years later during an audit.¹

Who Can Use the Resale Exemption

The exemption is available to anyone “regularly engaged in the business of reselling” the items being purchased, provided they hold a valid sales tax permit issued under Arkansas law.² It covers goods you intend to sell to customers in the ordinary course of business. It does not cover office furniture, cleaning supplies, tools, fixtures for your shop, or anything else your business consumes rather than resells.

Out-of-state buyers can also claim the exemption on Arkansas purchases. An Arkansas seller may accept a valid retail or resale permit issued by another state in place of an Arkansas permit number, as long as the buyer provides proper documentation.²

Get the Arkansas Sales Tax Permit First

You can’t use a resale certificate without a permit. Arkansas law makes it illegal to conduct taxable business in the state without first obtaining a gross receipts tax permit from the DFA, and each business location needs its own permit.³

Apply online through the Arkansas Taxpayer Access Point (ATAP) at atap.arkansas.gov. You’ll need a $50 nonrefundable fee paid electronically, the physical address where you’ll operate (no P.O. boxes), your planned start date, and a copy of your lease if you’re renting. Processing takes up to two weeks, and any outstanding tax liabilities have to be cleared before the DFA will issue a new permit.⁴

How to Complete Form ST-391

Download the ST-391 PDF from the DFA website and fill it out completely.¹ An incomplete certificate gives the seller no audit protection and can result in the tax being assessed against one or both parties.

The certificate needs:

Your Arkansas Sales/Use Tax Permit number, or, if you’re an out-of-state buyer, your home state’s equivalent permit number and the state that issued it.
The seller’s name.
A specific description of the merchandise you’re buying for resale. “Various goods” or “merchandise” is not enough.
Your business name and address, matching what appears on your permit, and your signature.

Arkansas will also let a buyer claim the resale exemption without the ST-391, by providing a retail permit number or a written statement that the goods are purchased for resale.² The formal certificate is the safer route for both parties if the DFA later audits the transaction.

When to Give the Certificate to the Seller

Hand the completed ST-391 to the seller at the time of purchase whenever you can. If that doesn’t happen, Arkansas gives the seller 90 days from the date of sale to obtain a fully completed exemption certificate or equivalent documentation from you.⁵ Waiting until day 89 is a gamble worth avoiding.

Blanket Certificates for Repeat Suppliers

If you buy from the same vendor regularly, one blanket exemption certificate covers all your purchases. A seller can accept a blanket certificate from any purchaser with a recurring business relationship, defined as at least one purchase every 12 months.⁵ The seller doesn’t have to ask you to renew as long as that relationship continues. Go more than 12 months without a purchase and the blanket certificate lapses; you’ll need a new one.

Buying from Out-of-State Suppliers

Arkansas is a full member of the Streamlined Sales Tax (SST) Agreement, and its regulations explicitly recognize the Streamlined Sales and Use Tax Agreement Certificate of Exemption (SSTGB Form F0003) as a valid alternative to the ST-391.² All 24 full member states accept it, so a single form can cover exempt purchases across multiple states.⁶

You still have to provide a registration number for the state where you’re claiming the exemption. If you’re not registered there, you can list a permit number from any state where you are registered.⁶ Send the completed certificate directly to your supplier, not to the SST Governing Board or any state agency.

Drop Shipping

Drop shipping creates a common problem. You take an order from your customer and have a third-party manufacturer or wholesaler ship the product directly to that customer. The sale from the manufacturer to you qualifies for the resale exemption because you’re reselling to the end buyer, even though you never handle the goods.

The complication is documentation. When shipping into Arkansas, the ST-391 or the SST certificate with your home-state permit number works. When your customer is in another state, whether an Arkansas or SST certificate is enough depends on that state’s rules. Roughly ten states require their own registration number and won’t accept alternatives, so check before you assume your Arkansas paperwork covers a shipment across the line.

Keep the Records for Six Years

Arkansas requires both buyers and sellers to keep tax records for at least six years after the return was filed, and those records are subject to DFA examination at any reasonable time during that period.⁷ This is where small businesses most often fall short.

Keep invoices for every tax-free inventory purchase, matched to the items described on your exemption certificates. Electronic copies are fine as long as they meet the same standards as paper originals: complete, legible, and available for DFA inspection. Records must be kept in Arkansas unless the DFA agrees otherwise.⁷

What Happens If You Misuse the Certificate

Using a resale certificate to buy something you don’t intend to resell shifts the full tax liability onto you. Arkansas treats any use of the property other than resale as a “withdrawal from stock,” and the tax becomes due the moment you divert the item from inventory.⁵ You have to self-report the tax to the DFA. The seller isn’t on the hook if they accepted the certificate in good faith.

If you don’t self-report, the numbers climb fast. Arkansas charges 10% annual interest on unpaid tax from the date it was due, plus a failure-to-pay penalty of 1% per month on the unpaid balance, with a combined maximum penalty of 35%.⁸ If the DFA determines the underpayment was intentional, consequences can be more severe. Operating without a permit at all subjects the business to sanctions under the Arkansas Tax Procedure Act.³

1
Arkansas Department of Finance and Administration. Arkansas Sales and Use Tax Exemption Certificate ST391
2
Legal Information Institute. Arkansas Code 006.05.06 53 – Exemptions from Tax – Sales for Resale
3
Justia Law. Arkansas Code 26-52-201 – Permit Required
4
Arkansas Department of Finance and Administration. Register for a Tax Account
5
Justia Law. Arkansas Code 26-52-517 – Exemption Certificates
6
Streamlined Sales Tax Governing Board. Exemptions
7
Justia Law. Arkansas Code 26-18-506 – Preservation of Records
8
Arkansas Department of Finance and Administration. Penalty and Interest Charges