When you receive an exemption certificate, as a best practice you should make attempts to ensure it's filled out correctly and determine whether it is applicable for your particular business situation. While specific legal obligations vary by state, it is your responsibility to determine the validity of the exemption certificates you receive. There are certain aspects to consider when accepting exemption certificates, such as whether the item sold is truly being bought for reselling purposes, if the buyer qualifies for the correct and true exemption certificate status, if the right form is filled-out accurately and up-to-date, and if you are at any time able to present all accepted certificates for audits. Be aware of the risks when accepting exemption certificates as processing errors may lead back taxes and penalties during sales tax audits.
What do I do when I receive an exemption certificate? Print
Modified on: Sat, 19 Oct, 2024 at 11:40 AM
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