![]() ![]() A properly completed exemption certificate accepted in good faith protects the seller from liability for the sales tax not collected from the purchaser.Įxemption certificates of other states or countries are not valid to claim exemption from New York State and local sales and use tax. Most sellers must have a valid Certificate of Authority in order to accept an exemption certificate. Note that many exemption certificates are very specific about what type of purchaser may use the certificate see the certificate’s instructions for details. ![]() In some cases, you must also have a valid Certificate of Authority to use an exemption certificate (see the chart at the end of this bulletin). you make purchases as an agent or employee of tax-exempt nonprofit organizations or government entities.you intend to use the property or service for a purpose that is exempt from sales tax or.you intend to resell the property or service.You may use an exemption certificate if, as a purchaser: For a list of items and services that may be purchased tax-free without an exemption certificate, see Publication 750, A Guide to Sales Tax in New York State. This means a purchaser does not need an exemption certificate to make purchases of these items or services. If you intend to use the supplies yourself, you cannot use a resale exemption certificate, and the distributor must collect sales tax from you.Ĭertain sales are always exempt from tax. Therefore, if you give a properly completed exemption certificate to the distributor (in this case, Form ST-120, Resale Certificate) within 90 days of your purchase, you are certifying that you intend to resell the items you purchased. Otherwise, the distributor could be held liable for the tax. Since the sale of cleaning supplies is normally subject to sales tax, the distributor needs some record to show why it didn’t collect sales tax from you. However, if you intend to resell the cleaning supplies to your customers (that is, you are purchasing the supplies for your inventory), you may purchase the supplies without paying sales tax. A purchaser must give the seller the properly completed certificate within 90 days of the time the sale is made, but preferably at the time of the sale.Įxample: You purchase cleaning supplies, which are taxable, from a distributor. ![]() This includes most tangible personal property and some services. When an exemption certificate is neededĪ sales tax exemption certificate is needed in order to make tax-free purchases of items and services that are taxable. TSB-M-07(1)S, Electronic Resale and Exemption Documents for Sales and Compensating Use Taxes. For more information on e-certificates, see Sales tax exemption certificates may also be issued and accepted electronically.
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