This review list is intended to educate you about this document and to assist you in preparing it. This document is required by some vendors so that they can have documentation on file that they are selling things legally without collecting state sales tax. As the purchaser, you must provide them with your Sales Tax Exemption number, which is often your Federal Identification Number. If one of these certificates is sought, use your Federal Identification Number unless otherwise banned by legislation; if you are a merchant, particularly one who frequently must collect sales tax, you should be extra cautious in collecting these from non-tax paying customers.
- If you are the purchaser, duplicate the document for distribution reasons. There is no need to file these for your personal records.
- If you are the seller, maintain signed copies in a general file and one in each transaction file to be used in the event that your business is inspected by state sales tax inspectors.
Sales And Use Tax Exemption
Sales and Use Tax Exemption
_______________________ hereby certifies that _______________________ has registered under the laws of the state of ___________________ for the collection of sales and use tax, registration number: ___________________.
All purchases shall be for resale and are exempt from sales and use tax under the laws of ___________.
This certificate shall be effective until written notice of revocation.
Dated: _____________________________
__________________________________________________
For, BuyerTitle: _________________________________
Authorized Officer of CorporationSales and Use Tax Exemption
Review ListThis review list is provided to inform you about this document and assist you in its preparation. This document required by some sellers so they can have, on file, evidence that they are selling products legitimately without collection state sales tax monies. As the buyer, you need to furnish them with your Sales Tax Exemption number, which, in most cases, is your Federal ID Number. If one of these certificates is requested, use your Federal ID Number, unless otherwise prohibited by statute; if you are a seller, especially one that often must pay sales tax, then you should obtain be especially vigilant to collect these from your non-tax paying customers.
1. If you are the buyer, make multiple copies for distribution purposes. No need to file these anywhere for your own records.
2. If you are the seller, keep signed copies in a general file and one in each related transaction file for use should your company be audited by state sales tax inspectors.
Frequently Asked Questions
What is a sales and use tax exemption certificate?
A sales and use tax exemption certificate is a document that certifies a buyer is registered to collect sales and use tax and that purchases are for resale. It provides sellers with evidence that they are selling products legitimately without collecting state sales tax. The certificate includes the buyer's registration number and is effective until written notice of revocation.
Who needs to provide a sales and use tax exemption certificate?
The buyer needs to furnish the seller with a sales and use tax exemption certificate when requested. This document is required by some sellers so they can have on file evidence that they are selling products legitimately without collecting state sales tax. The buyer must provide their Sales Tax Exemption number, which in most cases is their Federal ID Number.
What information is required on a sales and use tax exemption certificate?
The certificate must include the buyer's registration number for the collection of sales and use tax, the state of registration, and a statement that all purchases are for resale and exempt from sales and use tax. It also includes a date and the signature of an authorized officer of the corporation. The certificate is effective until written notice of revocation.
What number should I use for a sales tax exemption certificate?
You should use your Federal ID Number as your Sales Tax Exemption number, unless otherwise prohibited by statute. This is because in most cases, the Sales Tax Exemption number is your Federal ID Number. The certificate requires this number to be provided.
When does a sales and use tax exemption certificate expire?
The certificate is effective until written notice of revocation. There is no set expiration date unless revoked in writing. This means it remains valid indefinitely until the buyer revokes it.
Why do sellers require a sales and use tax exemption certificate?
Sellers require this document so they can have on file evidence that they are selling products legitimately without collecting state sales tax monies. It protects the seller from liability for uncollected sales tax. The certificate serves as proof that the buyer is registered and purchasing for resale.
What does 'for resale' mean on a sales and use tax exemption certificate?
The term 'for resale' means that the purchases are intended to be resold by the buyer. This qualifies the purchases as exempt from sales and use tax under state law. The certificate certifies that all purchases shall be for resale.
Who signs a sales and use tax exemption certificate?
An authorized officer of the corporation signs the certificate on behalf of the buyer. The signature line includes the title of the authorized officer. This ensures the certificate is officially authorized.
Is a sales and use tax exemption certificate required by law?
The document is required by some sellers, not necessarily by law. It is used to provide evidence that sales are legitimate and exempt from tax collection. The requirement depends on the seller's policies and state regulations.
What should a seller do with a sales and use tax exemption certificate?
The seller should keep the certificate on file as evidence that they are selling products legitimately without collecting state sales tax. This helps the seller avoid liability for uncollected tax. The certificate should be retained until it is revoked in writing.
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