The place to find business sales tax information

— as well as solutions, services and jobs!

We are verifying seller permits and/or exemption numbers to ensure that we are dealing with registered vendors. If states offer online validation, is that a good practice?

Full Question: We are setting up standard internal policy for vendor and customer master data that requires that we verify Sellers permit and/or exemption numbers, to ensure that we are dealing with registered vendors. Many states have online validation sites, is this overkill or a good best practice used by many companies.

Brought to you by:

NOTE: This site does NOT provide client-specific tax advice. Information provided is general and may NOT apply to your particular situation. Do NOT take any action based upon any site content until you have received advice from an independent, qualified tax practitioner with whom you have a professional-client relationship. All content is subject to our disclaimer.


Diane Yetter photoAt this time there are only a few states that require online validation of exemption and resale numbers and assess liability if the seller has not performed the validation. Under the Streamlined Sales Tax Project, this is not required however, sellers are required to validate that the format of the number and the type of exemption claimed does exist in the state. In terms of a best practice, for the states that do require the validation, this should be performed. In other states, the format of the number, the type of exemption claimed and the form completed should be validated to ensure the seller is protected in case of audit.

(Not quite what you need? View SALES TAX QUESTIONS home page to access other topics or use site-wide SEARCH in upper right)


Access to any portion of is contingent upon your acceptance of our Terms of Use. This Web Site and content provided by STS Publishing, LLC and its third party content providers, including, but not limited to information, documents, forms, comments, advice and opinions, is for informational purposes only, and is not a substitute for professional advice, nor does the use of this Web Site constitute a professional-client relationship. The Web-Site also includes advertisements, directory listings, job postings and links to third party web sites, all of which are provided for your convenience only and in no way constitute a referral, endorsement, or warranty by of any product or service provided by such third parties. All content is provided “as is” with no guarantee regarding accuracy, suitability, or timeliness. Your reliance on any content accessed on or through the Web Site, or on any product or service provider is strictly at your own risk.