Frequently Asked Questions

Exemptions

An exemption certificate is the form presented by an exempt buyer to the seller when making a tax-exempt purchase.

 

The Federal Government is an exempt organization, while state and local governments are sometimes exempt organizations.

 

This can also apply to businesses if they are either (a) buying products to sell for resale directly, or (b) using them in the making of products for resale, permitting that they have a valid exemption certificate (aka resale certificate).

A resale certificate is also called a sales tax certificate, reseller permit, or sales tax exemption certificate.

 

If you qualify for a resale certificate, you do not have to pay sales tax when you purchase qualifying goods from a vendor. However, you are still responsible for collecting sales tax from customers.

Schedule a 30-minute product demo with expert Q&A