Streamlined Sales and Use Tax Certificate of Exemption: Updates You Need to Know

The Streamlined Sales Tax Governing Board has updated its Streamlined Sales and Use Tax Certificate of Exemption

The Streamlined Sales Tax Governing Board has updated its Streamlined Sales and Use Tax Certificate of Exemption. The Board was created with the goal of finding solutions to simplify and modernize sales and use tax administration and reducing the tax compliance burden.  By creating a document that may be used to exempt taxable purchases in multiples states, the Streamlined Sales and Use Tax Certificate of Exemption is one such solution to that issue.

A customer purchasing taxable goods or services sourced to a state, or states, that are full members of the Streamlined Sales and Use Tax Agreement, may issue this multi-state, multi-purpose tax exemption form.  Member states are listed on the form and will allow purchases to be made exempt of sales tax if the listed exemptions on the completed certificate apply.

Instructions for the form are on the back or second page of the certificate. A completed form should include the purchaser’s name, address, type of business, reason for exemption and applicable identification numbers.  The purchaser should ensure the exemption claimed is eligible in the identified state, or states, as not all states allow all exemptions listed on the certificate.  As this certificate contains the same information requests as the preceding form, it should not be used to update certificates already on file. However, it should be issued to new vendors or accepted from new customers going forward.  

Sellers may accept this certificate for sales sourced to a streamlined member state to support not collecting sales tax on those transaction.  Drop shippers, or third-party suppliers, who sell items to a supplier and deliver those items to the supplier’s customers in member states, may accept the completed certificate from the supplier purchasing the items for resale.

Although Georgia requires sellers to verify the purchaser’s identification numbers, generally, the seller is not required to verify the purchaser’s identification numbers listed on the certificate.  Additionally, in certain instances, the identification number issued by one state may result in the same number being used for multiple states on the form.

If you have any additional questions about the use or implementation of the Streamlined Sales and Use Tax Exemption certificate, the Synexus Team is available to help.

Click this link to view the new certificate.

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