Glossary: Tax

EIN

EIN stands for Employer Identification Number: the nine-digit tax number the US Internal Revenue Service (IRS) assigns to a business. Wholesale sellers often ask for it on an application to identify a US business buyer.

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In detail

An EIN is written XX-XXXXXXX, two digits, a hyphen, then seven digits. Companies, partnerships and many other entities have one, and a sole proprietor without employees may use a Social Security number instead. That is why a wholesale application usually asks for the EIN, or an alternative, together with the business name and address.

An EIN identifies the business to the IRS. It is not a sales tax permit or a resale certificate, which are issued by a state and let a buyer purchase goods for resale without paying sales tax. Sellers who want to treat a US buyer as tax exempt normally ask for the resale certificate as well as the EIN, because the EIN alone does not give the exemption.

Checking an EIN takes care. A format check only shows that the number has the right shape, and does not prove the business exists. Sellers who need more assurance ask for supporting documents, such as the resale certificate, a business licence or a W-9, and compare the legal name and address with the application.

Treat EINs as sensitive business data. Collect only what you need, store it with care, and do not show it on public pages or in order emails that go to others. Keep the record you used to decide on an account, so you can show later why it was approved.

Example

A buyer applies for a wholesale account and enters 12-3456789 as the EIN. The form accepts the format, and the seller then asks for a resale certificate before it marks the account as sales tax exempt.

On Shopify

Shopify company locations have a Tax ID field. On a location you can choose to collect tax, not collect tax, or collect tax unless exemptions apply, and enter the associated tax ID in the tax details.

Sources: Shopify Help Center: Company locations (read October 4, 2026); Shopify Help Center: Tax overrides and exemptions (read October 4, 2026).

In BSS B2B apps

BSS B2B Solution's registration form has a US EIN field. The storefront form checks the format and then looks the number up with an EIN lookup service as the buyer types. The EIN field is limited to certain paid plans, see the pricing page.

About BSS B2B Solution

Learn more

Read the Tax and compliance hub for guides, use cases and setup docs, or the complete Shopify B2B guide.

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