Are Direct To Film (DTF) Transfers Tax Exempt?

Written By Chris Knop

Updated 7/1/2026

5 Minute Read

Possibly. If you purchase DTF transfers to resell or to apply to apparel that you will sell at retail, you may be able to purchase those transfers without sales tax by providing valid documentation for your state and intended use.

The key word is may.

Owning an LLC, having an EIN, holding a business license, or having a sales-tax permit does not automatically make every purchase tax exempt. In most cases, you will need to provide a properly completed resale certificate or other valid exemption certificate that applies to your purchase.

Armor Ink cannot determine whether your purchase qualifies. We can, however, help process valid documentation once it is submitted.

When DTF Transfers May Qualify

There are two common situations where DTF transfers may qualify for resale or exemption treatment:

1. You are reselling the transfers

If you purchase unpressed DTF transfers and sell them to your own customer, they may qualify as resale inventory.

Example: You order custom logo transfers from Armor Ink and sell those transfers directly to a local apparel business without applying them to garments yourself.

2. You are using transfers in apparel you will sell

If you purchase DTF transfers, apply them to shirts or other products, and then sell the finished items at retail, the transfers may qualify for resale or as part of the finished product—depending on your state’s rules.

Example: You buy transfers, press them onto T-shirts, and sell those shirts through your shop, website, fundraiser, event, or customer order.

State rules vary. Some states treat this as a resale purchase, while others may have separate rules for materials that become part of a finished product.

When Sales Tax May Still Apply

A resale or exemption certificate should only be used for qualifying purchases. You are generally the final consumer when transfers are used for something other than resale or a valid exempt purpose.

Common examples include:

Employee uniforms
Shirts for your own business or staff
Personal or family shirts
Promotional giveaways
Free event shirts
Samples that will not be sold
Transfers used for any non-resale purpose

If tax-free inventory is later used for personal, promotional, or other nonexempt purposes, you may owe sales or use tax on those items. Talk with your tax professional if you are unsure.

What Armor Ink Needs From You

To request tax-exempt treatment, please send Armor Ink a completed resale or exemption certificate that is valid for your state and intended use.

A business license, LLC filing, EIN letter, or sales-tax permit by itself is not enough.

Your documentation will generally need to include:

Your legal business or organization name
Your business address
The state connected to the exemption
Your sales-tax registration number, reseller number, or exemption number when required
The reason for the exemption, such as resale
A signature and date from an authorized person

For a resale purchase, the description of the items may read something like:

Direct-to-film heat transfers purchased for resale or for incorporation into finished apparel intended for retail sale.

Only use that description when it accurately reflects how you will use the transfers.

A Note for Schools, Churches, Teams, and Nonprofits

Being a nonprofit organization or having 501(c)(3) status does not automatically make every purchase tax exempt.

There are usually two different situations:

Resale: You are buying transfers to make shirts or merchandise that you will sell.
Organization exemption: Your organization has a valid state-issued exemption certificate for qualifying purchases made by the organization.

For example, a booster club purchasing transfers to make spirit shirts for sale may have a resale situation. A school buying shirts to give to students or staff may need to rely on a separate organization-specific exemption, if one is available in that state.

Do not assume that a federal nonprofit determination letter, church status, or school affiliation is enough on its own. Check with your tax professional or state tax authority before submitting documentation.

Can I Use One Certificate for Every State?

Not always.

Some customers may have a multistate resale certificate, but state acceptance, registration requirements, and exemption rules can differ. A certificate that works in one state may not be accepted for the same purchase in another.

You are responsible for making sure the documentation you provide is valid for your purchase, your intended use, and the applicable state.

How to Submit Your Documentation

Email your completed resale or exemption certificate to support@armorink.com before placing your order whenever possible.

Our team will review the document for completeness and let you know if additional information is needed. Once valid documentation is received and reviewed, tax-exempt treatment can be applied to eligible future orders where appropriate.

Please do not assume sales tax can be removed from past orders. Options for previously charged tax depend on the order, the timing of the documentation, and applicable state rules.

Need Help With the Submission Process?

Do the bulk discounts apply automatically? Yes. Once your DTF transfer order hits a threshold, the discount comes off at checkout. No code required.

Can I put multiple designs on one gang sheet? Absolutely. Combining different designs, sizes, quantities, and customer jobs on one sheet is exactly what gang sheets are for.

Are gang sheets cheaper than ordering by size? Often, yes — when you have several designs or can fill the space. For just a few individual prints, ordering by size is the simpler route.

Is there a minimum order? No minimum and no setup fees. Order what you need now and size up when it makes sense.

How do I know if I should reach the next tier? Compare your discounted subtotal before and after adding useful transfers. If you're close to a threshold, the bigger order can come out cheaper.

Do you offer free shipping? DTF transfer orders of $75 or more ship free. Below that, standard UPS Ground is $6.95. You'll see all options at checkout.

Important Tax Disclaimer

This article is provided for general informational purposes only and is not tax, legal, or accounting advice. Tax laws, exemption rules, certificate requirements, and the taxability of DTF transfers can change and may vary by state, locality, and intended use.

Armor Ink does not determine your eligibility for a resale or tax exemption and is not responsible for your tax decisions, the validity of your documentation, or the proper use of any certificate you provide. Please consult a qualified tax professional or your state tax authority before claiming any exemption or resale treatment.

Frequently Asked Questions

Do I need an LLC to use a resale certificate?

No. Eligibility is based on your business activity, state requirements, and how you use the items you purchase—not simply on whether you operate as an LLC, sole proprietorship, corporation, or another business type.

Is my EIN the same as a resale certificate?

No. An EIN identifies your business for federal tax purposes. A resale or exemption certificate is separate documentation used to support a qualifying sales-tax exemption.

Can I use a resale certificate for employee shirts?

Generally, no. Employee uniforms, staff shirts, personal use, and promotional giveaways are commonly treated as taxable because they are not being resold.

Can I submit a certificate once and use it for future purchases?

Possibly. Some certificates can cover recurring purchases, while others expire or require periodic renewal. Requirements depend on the state and type of certificate.

Can Armor Ink tell me which form I need?

Armor Ink can explain how to submit documentation, but we cannot tell you whether you qualify for an exemption or which certificate is legally correct for your business. A qualified tax professional or your state tax authority can help with that decision.

What happens if I use tax-exempt transfers for a nonexempt purpose?

You may be responsible for sales or use tax. Check with a tax professional or your state tax authority if your use changes after purchase.

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