As you kick-off your campaign to collect sales tax exemption certificates from all your customers, you need to ask yourself who you need to contact... When the state comes to audit your company they will provide a list of customer names and ship-to locations that need to have sales tax exemption certificates.
The first response from many people is that every ship-to location should have a valid exemption certificate and, therefore, every one of them should be contacted to acquire the correct forms. The correct and legal answer is that you, as a seller, have no connection to the ship-to location. A seller has a contract with the buyer – who may be the ship-to location or may be a completely different company. You should only be contacting the buyer or bill-to locations to ask for sales tax exemption certificates. You should reference the states where the goods are delivered. It is not just the bill-to customer’s home state that you need an exemption certificate from, it is every state in which goods are delivered. So, though you will need to have every ship-to location covered, it may be covered by an exemption certificate with the bill-to customers name on it.
Other recent “Exemption Certificate Mgmt.” posts by Silvia Aguirre:
- Exemption Certificates for Federal Government Purchases
- Marketplace Fairness: What Does It Mean For Exemption Certificates?
- Will Oregon Start Charging Sales Tax? If So - Are You Ready?
- Canada is Bringing Back Exemption Certificates!
- Louisiana Changes State Forms to Include Parish Exemptions
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