We are a Delaware registered LLC company and will commence selling to various
state Govts as resellers. The goods never come to us as our supplier from one
state will ship it to a state govt department in another state. We do not
want to go thru the hassle of registering in every state, collecting sales
tax, filing returns, paying sales taxes & then filing for refunds. We are new
and confused about this and would appreciate if someone can throw some light
on this. Is there like a Multi state Exemption certificate for sales tax??
Jack
Michael J. Fleming | Window Shopper |
2/28/2013 - 10:12 pm
Not every state allows the use of a mufti-jurisdictional certificate and some
that do allow it, do so only with the specific state registration number.
Some will allow it with your home state registration number. Any of the SSTA
full member states will allow an SST multi-state form with your home state
number. Exemption certificates have become very low hanging fruit for
auditors. A number of years ago it was more substance over form. Now it is
form over substance. If you don't have your "i"s dotted and your "t"s crossed
you stand a good chance of having your certificate invalidated and the
transaction set up in the audit. The kicker is that because most audits are
done on a sample basis the amount will be projected out across the sample.
The moral of the story is to make sure you are collecting the correct
certificates. In addition not all states exempt transactions to state and
local governments.
BizResearcher | Window Shopper |
11/13/2012 - 11:29 am
There are multi-jurisdictional sales tax permits available. Your accountant
can provide information and help you set up your bookkeeping system properly.
JGabriel | Community Moderator |
11/9/2012 - 10:38 am
Try getting in touch with a local Small Business Development Center or SCORE, two of SBA's resource partners. They're located across the country andprovide free business counseling and answers. Visit our local assistance guide to find your local SBA resource partners by entering your zip code. Another approach that may be useful is talking to a mentor who could offer you specific guidance. The following blog may also help shed some light on the issue as well.
Michael J. Fleming | Window Shopper | 2/28/2013 - 10:12 pm
that do allow it, do so only with the specific state registration number.
Some will allow it with your home state registration number. Any of the SSTA
full member states will allow an SST multi-state form with your home state
number. Exemption certificates have become very low hanging fruit for
auditors. A number of years ago it was more substance over form. Now it is
form over substance. If you don't have your "i"s dotted and your "t"s crossed
you stand a good chance of having your certificate invalidated and the
transaction set up in the audit. The kicker is that because most audits are
done on a sample basis the amount will be projected out across the sample.
The moral of the story is to make sure you are collecting the correct
certificates. In addition not all states exempt transactions to state and
local governments.
BizResearcher | Window Shopper | 11/13/2012 - 11:29 am
can provide information and help you set up your bookkeeping system properly.
JGabriel | Community Moderator | 11/9/2012 - 10:38 am
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