- April 4, 2026
- Posted by:
- Category: Resale Certificate
Hawaii GET: Is There a Traditional Resale Certificate?
How Hawaii GET Differs From a Typical Sales Tax
Hawaii does not operate a traditional retail sales tax system. Instead, Hawaii imposes a General Excise Tax (GET) on the gross income of businesses for the privilege of doing business in the state. Because GET is a business tax (not a pass-through sales tax by default), Hawaii’s exemption documentation and resale practices do not mirror the “resale certificate” model used in many other states.
In practice, many businesses still refer to “resale certificates” when they mean documentation that supports applying the wholesale GET rate on certain sales to licensed resellers. Hawaii has its own approach and terminology for this.
Is There a Traditional Hawaii Resale Certificate?
No. Hawaii does not issue a standard, state-branded “resale certificate” equivalent to the forms commonly used in sales-tax states.
Instead, Hawaii relies on:
- GET licensing and verification (the buyer should have an active Hawaii GET license and provide their Hawaii Tax ID / GET license number)
- Seller records that support why a lower wholesale rate was applied (or why a transaction was treated differently under GET rules)
- Transaction facts showing the buyer is purchasing for resale (and not for their own use)
What Businesses Commonly Use in Place of a “Resale Certificate”
While Hawaii does not provide a single standard resale certificate form for GET, sellers commonly collect a buyer statement (paper or electronic) that includes:
- Buyer’s legal business name
- Buyer’s Hawaii GET license number (Hawaii Tax ID)
- Business address and contact information
- Description of items normally purchased for resale
- Statement that purchases are for resale (not for the buyer’s own use)
- Authorized signature and date
This documentation supports the seller’s position that the sale qualifies for wholesale treatment when applicable.
When the Wholesale GET Rate May Apply (and Why Documentation Matters)
Hawaii GET rates can vary by activity. In many business-to-business resale situations, sellers may be eligible to apply the wholesale rate rather than the retail rate when selling goods to a licensed reseller who is buying for resale.
To support wholesale treatment, the seller should maintain records that show:
- The buyer is a licensed Hawaii business (active GET license)
- The buyer is purchasing inventory for resale in the ordinary course of business
- The seller’s invoice and customer file tie the transaction to the buyer’s GET license information
Common Pitfalls That Trigger GET Issues
- Buyer uses goods instead of reselling them (documentation says “for resale,” but facts show business use)
- Missing or incomplete buyer license information in the seller’s records
- Mixing taxable activities (retail vs. wholesale vs. services) without clear invoicing
- Assuming out-of-state resale certificates apply the same way in Hawaii
Practical Recordkeeping for Hawaii “Resale” Transactions
Because Hawaii relies heavily on the seller’s records, build a repeatable process:
- Collect the buyer’s Hawaii GET license number at onboarding.
- Use consistent customer-type labels (e.g., “Reseller/Wholesale Customer”).
- Ensure invoices clearly indicate wholesale vs. retail transactions.
- Store buyer statements and license details with the customer profile in your accounting or POS system.
- Periodically confirm the buyer remains an active business and the purchasing pattern aligns with resale.
Quick Reference Table
| State | State sales tax rate | 5 major cities | 5 major counties |
|---|---|---|---|
| Hawaii (HI) | No traditional state sales tax (GET applies) | Honolulu, Hilo, Kailua, Kahului, Pearl City | Honolulu, Hawaii, Maui, Kauai, Kalawao |
How Hawaii GET Impacts Invoices and Customer Communications
Many Hawaii businesses visibly pass GET through to customers as a separate line item, but GET is still imposed on the business. For resale/wholesale customers, it helps to:
- Use clear invoice language that distinguishes wholesale transactions from retail transactions.
- Train staff not to request a “Hawaii resale certificate” as if it were a standard state form; instead, request the buyer’s Hawaii GET license number and a resale statement.
- Keep customer files audit-ready with consistent naming conventions and document storage.
Related Reading and Helpful Internal Resources
If you also manage multistate compliance, keep your registrations organized and confirm you have the right state account identifiers on file. For example, you may also want to review how a Georgia State Sales Tax Number is used for sales tax administration.
Similarly, if you do business in the Mountain West, it can help to understand how to obtain and manage a Utah State Sales Tax Number for proper reporting and customer exemption documentation in that state.
FAQ: Hawaii GET and “Resale Certificates”
1) Does Hawaii issue an official resale certificate form?
No. Hawaii does not have a traditional, standardized resale certificate like many sales-tax states. Sellers typically rely on the buyer’s Hawaii GET license number and supporting resale documentation.
2) What should I request from a Hawaii customer claiming they are buying for resale?
Request the customer’s Hawaii GET license number (Hawaii Tax ID) and a written statement that the purchases are for resale, along with basic business identification details.
3) If my customer is a reseller, do I automatically charge the wholesale GET rate?
Not automatically. The transaction must qualify as wholesale under Hawaii GET rules, and the seller should maintain records showing the buyer is licensed and purchasing for resale.
4) Can I accept an out-of-state resale certificate instead?
Hawaii does not operate a traditional resale certificate framework under GET, so an out-of-state resale certificate is not a substitute for maintaining Hawaii-appropriate documentation tied to the buyer’s Hawaii GET licensing and the facts of the transaction.
5) What happens if the buyer uses the goods instead of reselling them?
If the buyer consumes or uses the goods, the transaction may not qualify for wholesale treatment. Clear documentation and consistent purchasing patterns help support proper tax treatment.
6) Do services have “resale certificates” under Hawaii GET?
Hawaii’s GET applies to many types of business activity, including services. “Resale” concepts are generally more straightforward for goods, while services often require careful classification and documentation of the nature of the transaction.
7) Should my invoice show the buyer’s GET license number?
Including the buyer’s GET license number on invoices (or linking it to the customer profile) strengthens recordkeeping and helps substantiate wholesale treatment when applicable.
8) How long should I keep resale-related documentation for Hawaii GET?
Maintain buyer statements, invoices, and customer licensing details in an organized file so you can support your reporting positions across filing periods and any later review.
9) If I’m a Hawaii wholesaler, do I need my own GET license even if I only sell to resellers?
Yes. Hawaii GET is imposed on doing business in Hawaii. Wholesalers generally need to be licensed and report GET based on their business activity classifications.
10) What is the most common mistake businesses make with Hawaii “resale certificates”?
The most common mistake is treating Hawaii like a traditional sales-tax state and failing to collect the buyer’s Hawaii GET license information and a clear resale statement that supports wholesale treatment.