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Sales Tax Exemption Certificates - The Ideal Process...

author photo of Silvia Aguirre

Welcome to our dedicated exemption certificate blog. Here we can explore all the nuances related to these tax documents and how they affect your business processes. Throughout the years, I’ve seen how exemption certificates have become a more visible item to deal with in tax departments. State audits have become more frequent and more intense. Not surprising, I expect the topic of sales tax exemption certificate issues to become increasingly discussed as state governments resolve new economic nexus issues.

Two moving targets keep changing the dynamics on managing exemption certificates: technology and state legislation. Through this blog, I look forward to sharing my sales tax exemption certificate knowledge and audit experiences to keep you up to date on both. My background involves both the public and private sector. I have audited companies on behalf of the state and also had to defend companies during the audit as an employee. Although opposing sides to a potential conflict, each one is a necessary part of the business community.

I know there are a lot of individual issues on handling exemption certificates, so I encourage you to post your questions and comments, as they will benefit everyone. We can drill down more in depth on the topics that interest the community the most.

The first step in analyzing a sales tax exemption certificate process is reviewing the different available methods. Some companies have a well-defined process that includes the sales people, customer service staff, credit department and tax department. Some companies have the whole process managed by a tax staff member and utilize tools embedded within the existing ERP platform. Other times it will be completely outsourced.

What are you currently using and how is it working out for you? What are the benefits of your process - and what can others learn from it? Also, if you had the ability to re-create the process of handling sales tax exemption certificates - what would be the ideal process in your mind?

Note: Silvia Aguirre is no longer accepting new comments nor questions. More recent "Exemption Certificate Mgmt" posts by Michael Fleming (of Peisner Johnson) are still active. Also use the Site's SEARCH bar to locate other helpful information.

Other recent “Exemption Certificate Mgmt.” posts by Silvia Aguirre:

NOTE: All blog content, comments, and participation subject to disclaimer at bottom of page.

Comments

Note: Silvia Aguirre is no longer accepting new comments or questions.  More recent "Exemption Certificate Mgmt" posts by Michael Fleming (of Peisner Johnson) are still active.  Also use the Site's SEARCH bar to locate other helpful information.

9 Responses to Sales Tax Exemption Certificates - The Ideal Process...

  • Posted by Holly on September 19, 2014 1:55am:

    Hi!
    We are located in Florida. Some of our customers are churches, government, etc. and provide us with a consumer's certificate of exemption. Some of these customers may have more than one site/location. It is my understanding that each location that is exempt would have it's own certificate (own number). I've call FLDOR and they have confirmed but nothing in writing. They tell me it's a "given". I can't find anywhere in the statues where it states this. I'm hitting a roadblock when I ask my customers for this. They are telling me one covers all. I am especially running into the problem with city's. What's your opinion?
    thank you!

    • Posted by Author photo of Susan JaegerSusan Jaeger on December 5, 2014 7:31am:

      Holly / Renee - Thanks for your questions and apologies for the slow response. While Silvia Aguirre’s very helpful Exemption Certificate blog information is still available – she is no longer posting new items or responding to new comments or questions.
      However – some good news… Andy Johnson and Michael Fleming of Peisner Johnson & Company have taken over the Exemption Certificate blogging activity. If you would like to post an Exemptions Certificate related question – feel free to submit through the comment section in the newest/latest post(s) listed on this linked page.
      http://www.salestaxsupport.com/blogs/sales-use-tax/author/mikefleming/
      Thanks!
      SalesTaxSupport.com

  • Posted by Renee on September 4, 2014 4:27am:

    The government purchased from our company. Merchandise is being shipped to Missouri. I have requested a Missouri sales and use tax exemption. I have been ignored.

  • Posted by Carla on June 25, 2014 4:04am:

    I am working with a tax exempt entity that has provided me with a Texas Sales & Use Tax Exemption Cert. I have supplied my vendors with my company's copy of same. I have 1 vendor who insists that I also submit the Texas Sales & Use Resale Certification. Is there any potential problem with submitting both forms to this vendor? The end purchaser is tax exempt and I do not want to imply that I will be collecting sales tax which is what the Resale cert looks like it does?

    • Posted by Author photo of Silvia AguirreSilvia Aguirre on June 25, 2014 4:24am:

      Hi Carla, if you are passing goods without charging tax to the exempt entity then you are reselling. Texas views this as two transactions. One between you and your tax exempt entity, in your case you would not charge tax because they gave you a Texas Exempt certificate, and two, between you and your vendor. You need to provide your vendor a resale certificate so they don't charge you taxes, they should not care about the first relationship. If you do not provide a resale certificate they would charge you taxes. I hope this helps! Silvia

  • Posted by Carder on November 22, 2013 4:42am:

    Hi,
    We are physically located in California, one our our vendors located in LA asked for the Parish tax Exemption certificate. Could you please let us know the process to obtain one? Or is it for the local businesses only?
    Our LA Tax #- 1843513-001-400

    • Posted by Author photo of Silvia AguirreSilvia Aguirre on December 2, 2013 1:29am:

      First question is if you have nexus in a Parish. If you have nexus then you can go directly to each Parish to register, if you do not have nexus then there is not need to register. If you are drop shipping to a customer in LA, you can add a comment in the LA preprinted form stating you have no nexus in the Parish.

  • Posted by Kelly on November 19, 2013 1:06am:

    what states are the EPA required materials for landfill construction exempt

    • Posted by Author photo of Silvia AguirreSilvia Aguirre on December 2, 2013 1:21am:

      If by EPA you mean the federal government, they should be exempt on their projects, but if you are working with a contractor that is working with the federal government, each state is different and you will need specifically a pass through certificate issued per location and some with specific time frames.

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