How to Get a Resale Certificate in Hawaii

How to Get a Resale Certificate in Hawaii

How to Get a Resale Certificate in Hawaii

If you're starting a retail business in Hawaii and looking for a resale certificate, you need to know this upfront: Hawaii does not issue resale certificates. Hawaii has no sales tax, which is the whole point of resale permits in other states. Instead, Hawaii businesses must register for a General Excise Tax license, a different system entirely that applies to the business, not the customer.

This guide walks you through what you actually need to do to legally operate a business in Hawaii and handle its unique tax requirements.

Why Hawaii Has No Resale Certificates

Resale certificates exist in states with sales tax. They let businesses buy inventory for resale without paying that sales tax. But Hawaii abolished sales tax decades ago. So there's no sales tax to avoid, and no resale certificate to obtain.

What Hawaii has instead is the General Excise Tax, a tax on the business's gross income, not on the customer. This is a critical difference.

Hawaii's General Excise Tax (GET): What You Need to Know

The General Excise Tax is levied by the Hawaii Department of Taxation on gross receipts or gross income of any business activity. Here's how it breaks down:

Business Activity State Rate County Surcharge Total Rate
Retail goods and services, construction, rents 4.0% 0.5% 4.5%
Wholesaling and producing goods 0.5% 0.5% 1.0%
Insurance commissions 0.15% 0.5% 0.65%

All four Hawaii counties (Honolulu, Hawaii, Kauai, and Maui) have adopted the 0.5% county surcharge, which runs through December 31, 2030.

Unlike a sales tax that a customer pays at checkout, the GET is a tax on your business's income. You report it on periodic returns and pay the state directly based on your gross receipts.

Do You Need a General Excise Tax License?

Yes. The Hawaii Department of Taxation states that essentially every business operating in Hawaii must obtain a GET license. It doesn't matter if you're a sole proprietor, an LLC, or a corporation. If you're doing business in Hawaii, you need to register.

The only narrow exceptions are certain government entities and nonprofit organizations, but if you're starting a for-profit business, you're covered.

Materials You'll Need to Register

Before you apply for your Hawaii General Excise Tax license, gather the following:

  • Your Social Security Number (if you're a sole proprietor) or EIN (if your business is a corporation, LLC, or partnership)
  • Business name and Hawaii street address
  • Type of business activity (retail, wholesale, service, etc.)
  • Expected monthly gross income (rough estimate is fine)
  • Start date of business operations
  • If filing by mail: a completed Form BB-1 (General Excise Tax License Application)

You do not need to provide financial statements, bank information, or credit card details for the GET license itself.

Step-by-Step: How to Register for a Hawaii GET License

Step 1: Choose Your Registration Method

The Hawaii Department of Taxation offers three ways to register:

  • Online via Hawaii Tax Online (fastest): Apply at tax.hawaii.gov/get. Processing takes 5 to 7 business days.
  • In-person at a DOTAX office (immediate): Walk in with your completed Form BB-1. You'll get a license number on the spot. Office locations are listed at tax.hawaii.gov.
  • By mail (slowest): Print Form BB-1, complete it by hand, and mail to Hawaii Department of Taxation. Processing takes 4 to 6 weeks. Include a check for the $20 filing fee.

For most new businesses, online filing is the sweet spot: faster than mail, more convenient than a trip downtown, and only a one-week wait.

Step 2: Complete Form BB-1 (If Not Filing Online)

If you're registering online, the Hawaii Tax Online portal walks you through the form fields. If you're filing by mail or in-person, download Form BB-1 from tax.hawaii.gov and fill it out completely:

  • Section 1: Your name, SSN or EIN, and Hawaii address
  • Section 2: Business name (exactly as it appears on your LLC Articles or corporate charter, if applicable)
  • Section 3: Business activity type (select from the list provided)
  • Section 4: Expected monthly gross income (your best estimate)
  • Section 5: Business start date or date you began operations

Print clearly in blue or black ink. Illegible forms slow down processing.

Step 3: Pay the $20 Filing Fee

The General Excise Tax license is a one-time $20 fee. There is no annual renewal fee; once you have your license, it remains active until you close your business or voluntarily surrender it.

  • Online: Pay by debit or credit card during registration.
  • In-person: Pay by cash, check, or card at the DOTAX office.
  • By mail: Include a check payable to Hawaii Department of Taxation.

Step 4: Receive Your License Number

  • Online registrants: You'll get a license number via email within 5 to 7 business days.
  • In-person applicants: The tax official will issue your number immediately.
  • Mail applicants: You'll receive a paper license certificate by mail within 4 to 6 weeks.

Your license number is permanent. Write it down and keep it safe, you'll need it for all future GET returns and tax correspondence.

Step 5: Understand Your Filing Obligations

Once your GET license is active, you must file periodic returns reporting your gross income and paying the tax owed. Filing frequency depends on your expected gross income:

  • Monthly filers: Expected monthly income of $5,000 or more (file by the 20th of the following month)
  • Quarterly filers: Expected monthly income of $1,000 to $4,999 (file by the 20th after each quarter)
  • Annual filers: Expected monthly income under $1,000 (file once per year by January 20)

File through Hawaii Tax Online at tax.hawaii.gov (most convenient), by mail, or in-person. Even if you have zero income in a period, you must still file a return showing zero, do not skip it.

Critical Compliance Point: You Must File Even With No Income

This is the most commonly missed requirement. A GET license holder must file periodic and annual returns even in a period with no income. Filing a zero-income return keeps your license in good standing and prevents penalties. The Department of Taxation takes this seriously and can assess late fees, even on zero-income periods.

What If You Are a Wholesaler or Reseller?

If your business buys goods for resale (wholesale or retail), you still don't get a resale certificate in the traditional sense. However, your GET rate is different depending on whether you're a wholesaler or a retailer:

  • Wholesaler (buying to resell at wholesale): GET rate is 0.5% state plus 0.5% county = 1.0% total.
  • Retailer (buying to resell at retail or to end consumers): GET rate is 4.0% state plus 0.5% county = 4.5% total.

The key difference is in the type of sale you make, not in holding a separate permit. When you register for your GET license, accurately describe your business activity so the Department of Taxation places you in the correct tax bracket from the start.

Common Mistakes to Avoid

  • Assuming Hawaii has sales tax. It doesn't. There's no sales tax to collect from customers. Stop looking for a resale certificate; they don't exist here.
  • Starting business without a GET license. Operating without one is illegal and can result in penalties and back taxes. Register before you open.
  • Filing a return late or not at all. Late fees apply even to zero-income returns. Calendar your filing deadlines.
  • Misclassifying your business activity. If you claim to be a wholesaler to get the 1% rate but actually sell retail, you're underreporting tax and risking penalties.
  • Forgetting about the county surcharge. Hawaii's county surcharge of 0.5% applies in every county through 2030. Add it to the state rate in all calculations.

What If Your Business Is in Multiple Counties?

If you have physical locations or make sales in more than one Hawaiian county, you may need to register separately in each county or report allocation of income by county on your GET returns. Consult the Hawaii Department of Taxation directly at tax.hawaii.gov or call them for guidance if this applies to your business model.

When to Consult a Professional

This content is informational, not legal or tax advice. Consult a qualified Hawaii CPA or tax attorney if your business involves:

  • Multiple business entities or ownership structures
  • Sales across state lines or internationally
  • Significant inventory or manufacturing operations
  • Exemptions you believe may apply to your business
  • Prior years of business operations with unpaid tax questions

A professional can help you file correctly from day one and avoid costly mistakes.

Key Takeaways

  • Hawaii has no resale certificates because it has no sales tax.
  • Every business in Hawaii needs a General Excise Tax (GET) license. It's the only Hawaii business tax license you must obtain.
  • The license costs $20, one time. There is no annual renewal fee.
  • Register online for fastest processing (5-7 business days) at tax.hawaii.gov/get.
  • File GET returns on time, even with zero income. Missing deadlines triggers penalties.
  • Your GET rate depends on your business type: 4.5% for retail, 1.0% for wholesale, 0.65% for insurance.
  • Keep your license number safe and use it on all tax filings and correspondence with the state.

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