Exemption Certificate Management
In addition to our sales tax software and filing services, we also offer comprehensive sales tax exemption certificate management.
What are Exemption Certificates?
Some of a business’s customers may not be required to pay sales tax. Common examples are when products are purchased for resale, or when the customer is an exempt organization, such as a school or church.
Exemption certificates are issued by the states to businesses that qualify for tax-exempt purchases. They typically specify conditions under which purchases may be tax exempt, and they are for a set period of time. When they expire, a retailer must obtain a new exemption certificate or begin to charge sales tax to the customer.
How Exemption Certificates Affect Our Calculations
Exempt purchases made by qualifying customers will not create a sales tax amount due. An order may be completely or partially exempt for tax. When our software calculates the sales tax due, it takes into account the customer’s tax-exempt status, the state to which the order is being shipped, and details about the products being purchased.
An entirely exempt purchase will be recorded as such, and will have $0 in sales tax applied.
How We Manage Exemption Certificates
Our sales tax exemption management services involve collecting and verifying certificates from your customers. Exempt customers are managed in our system so that only the appropriate sales tax is charged, if any.
We retain copies of the certificates for documentation purposes, should they ever be needed for future reference. We also attempt to update certificates as they approach expiration.
This creates an almost-entirely hands-off process for your business.