What You Need To Know About State Tax Exemption Certificates
In the ever-changing landscape that is Sales & Use Tax, there is one thing that remains the same. Sales or use tax should be charged on the sale or use of tangible personal property. Transactions involving the sale, use and sometimes lease or rental of items that you can feel, see, smell or touch are normally subject to Sales or Use tax, unless a specific exemption is prescribed by state law. A Tax Exemption Certificate is a legal document provided by the buyer to the seller verifying the applicable exemption.
Read More →5 Key Seller Responsibilities for Tax Exemption Certificates
Like Sales & Use tax, the rules that govern tax exemption certificates vary from state to state. Understanding the Seller’s responsibilities regarding collecting and accepting tax exemption certificates is a critical part of effective Tax Administration.
Read More →5 Key Buyer Responsibilities for Tax Exemption Certificates
From the buyers’ perspective, a purchase is either taxable or not taxable. An exempt transaction is a taxable transaction that qualifies for an exemption. Tax should be charged on taxable sales and not charged on sales that are not subject to sales & use tax. If the sales transaction is exempt, an exemption certificate should be provided by the buyer to substantiate the exemption.
Read More →5 Most Common Sales & Use Tax Exemptions
Albeit being thrust into the depths of economic nexus and Multi-State & Local tax legal variability, there remain some generalities that we can count on. Such as, Sales & Use tax being due on the sale, use or rental of tangible personal property and some services unless an exemption applies. And Sales & Use tax being imposed on the customer, purchaser or buyer of said property or services. With the responsibility of collecting remaining with the seller. And although each states' Sales & use tax law differs, we see these generalities extend to the type of Sales & Use tax exemptions.
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