Streamlined Sales And Use Tax Agreement Exemption Certificate

Where a drop sender supplies a product to the seller`s customer in an optimised full Member State, the seller may use the VAT registration number of the seller`s State on the exemption certificate made available to the drop sender. The seller is not required to indicate, when purchasing resale products, a VAT registration number of the State in which the sale is made. They must either keep a fully completed exemption certificate or record and retain the standard data elements of the certificate in electronic form. (SSTGB Rule 317.1.A.10) This is not the case for ship-shipments of digital services and products. State laws determine whether a seller can issue a resale exemption certificate to a supplier or other seller for the sale of digital services or products. Do not send exemption certificates to the Streamlined Sales Tax Governing Board or the United States. Buyers must present the completed exemption certificate to their supplier and keep a copy of their file. The Streamlined Sales Tax Agreement, a multi-state agreement that provides for the simplification of the country`s various VAT laws. These states include: Indiana, Iowa, North Dakota, South Dakota, Tennessee and Wyoming. Minnesota is a member of the Streamlined Sales and Use Tax Agreement (SSUTA). These increased efforts are aimed at simplifying and modernising the management of sales and user taxes in order to significantly reduce the burden of tax compliance.

For information regarding exceptions or exempt entities of a given State, please contact that State. If the drop sender receives a fully completed exemption certificate from the seller, the drop sender shall not be liable for turnover tax on products that the drop sender has delivered to the seller`s customer in an optimised Member State. Sellers registered by the Streamlined Sales Tax Registration System (SSTRS) must collect and reject revenue tax in any country where they are registered when the product sold is purchased in that state. If the seller`s customer has a certificate of exemption to the seller, the seller should not collect tax on the sale or use of that transaction. Under the agreement, the procedure for exemption from turnover tax on the basis of diplomatic or consular status remains similar to that of previous procedures. Please note that this procedure only applies to purchases made in the states mentioned above. The procedure for obtaining tax exemption for purchases made in all other states and the District of Columbia has not changed. To allow foreign representations, international organizations or their eligible members to benefit from a tax exemption for purchases made in the states listed above, the following procedure should be followed: Additional documents attesting that the state accepts the use of your exemption or resale number are available on the state`s certificate of conformity. .

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