Do You Qualify For a Sales Tax Exemption?

Have you wondered whether you qualify for sales tax exemptions as an online seller? How do you get an exemption certificate? In this video, Kexin explains what the qualifications are for both buyers and sellers, and how to get a resale exemption certificate.

0:00 Agenda
0:53 What is a sales tax exemption?
1:35 Three types of exemptions as a seller
2:13 How to configure Shopify for non-taxable products
4:14 Exemptions as a buyer
4:52 When you need to provide a valid resale certificate
5:06 Where do you get a resale or exemption certificate?
5:59 Forms you’ll need when your supplier is in a different state
6:20 How to get an exemption form in most states
6:39 How to get an exemption form in the tricky states (CA, HI, and CT included)
7:24 How to get help with this

The forms you need to fill out:
👉 Streamlined Sales Tax (SST) Certificate of Exemption:

👉 For a complete walk-through of how to fill out the forms, watch "How to Fill Out the SST & MTC Exemption Certificate Forms":

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🔥 To download our COMPLETE GUIDE TO SALES TAX COMPLIANC, “10 Steps to Ensure Sales Tax Doesn’t Burn Down Your eCommerce Business.”

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⬇️ MORE STUFF YOU SHOULD CHECK OUT ⬇️

**SALES TAX COMPLIANCE PLAYLIST: **

** For a clear idea of where you are in the process of sales tax compliance, take our SALES TAX QUIZ: **

** For information on our step-by-step SALES TAX COURSES designed specifically for online sellers and accountants working with ecommerce clients: **

** Need help on your sales tax? Contact us: **

** MORE RELATED CONTENT **

** BLOG: Understanding the Basics of Sales Tax Exemptions **

** BLOG: Shopify Sales Tax Setup | Where and How to Collect **

** VIDEO: Exemption Certificates **

** If you're interested in our ECOMMERCE ACCOUNTING SERVICES, click here to contact us: **

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[TheRealEstateInformant]

This is an awesome video. Thank you for taking such a complex subject and explaining it in a simple way that makes sense. I look forward to more of your videos

[deannbrekke]

This is exactly what I was looking for, I may have some questions later.

[michellehan]

Thanks for the helpful video! My situation is my company will buy from a US local supplier and then resell to international customer. In that case, when should the sales tax be collected and to which state's rate? Does it qualify an exemption? Thanks!

[mandydahl]

HI! Great video. I have a client in CA who is selling to a customer in Oklahoma. The CA client is buying products from a vendor in Tennesse who will ship the goods directly to Oklahoma. The Tennessee vendor is asking for a tax exemption form for Oklahoma. Is this a situation where my CA client could fill out the Streamlined Sales Tax Certificate of Exemption Form and provide to the Tennesse vendor to be excluded from paying sales tax?

[JustineCooksVegan]

Hi! New subscriber here! I found your videos really well articulated and easy to understand. 🙏🏼 I know this wasn’t mentioned but I’m assuming all digital download products are exempt from sales tax? I’m located in CA but would be selling in many countries- wasn’t sure if you had a video on that or if it just doesn’t apply so not much to go over. Thank you so much! Look forward to more videos ❤

[andreamiller]

Thanks so much @LedgerGurus, very helpful! I'm new to the whole dropshipping process. I have my resale cert for my state and will fill out the 2 forms you recommended, but was wondering if there's any central location where I can find the forms I need for the states that are not covered?

[attaullahrahmatsafi]

Thanks for your valuable information regarding sales tax and exemption.
in my case, I don't exist physically in Wyoming and I own Wyoming LLC. I buy products from various suppliers in various state of US and resale these items through Amazon. In latest I applied for seller permit through WYIFS. They rejected my application as my business don't exist physically in the state. I need to be sales tax exempted when I purchase from supplier what can I do in this situation?
Secondly in my case am I qualified for SST MTC ?
Thanks in advance

[AshleyDoe]

I don't recall a part of the video on the buying side of things for when the business owner is buying supplies and inventory. Can anyone elaborate on this?

[Razorcrew_Cole]

So you're the only one that seems really educated on this, Thank you for the video I'm still a little confused lol. Do I need to be charging sales tax in other states It seems like not because I don't have Nexus? And then do I qualify to not pay tax then if I'm not charging for it? My suppliers are in China, I rewire things and then resell them through the states online. Just released my website have my certificate for my state I'm in and kind of lost and don't want to get hit with fees later cuz I have very low up charge trying to help my community. Would appreciate any input 😕 🙏

[jawunahmud]

what if my supplier was out of the country? do i still get the resale exemption in my home state?

[markbennis]

Wow! So complex, I am completely dumbfounded. I am from the UK and have just opened an online shop on my website. I have just began using Printify to sell merchandise on my website, and all seemed great until I was hit with 'tax exemption certificates'? Then my mind fell into a cosmic web of fractals and my enthusiasm was slam-dunked! How do I fill out resale tax for so many states?

[DOLFINDANCE]

i have registered my llc in montana how to get reale certificate from the estate having no sales tax

[ceylanjocius]

Great video! So informative! I live in IL, I buy items from stores in IL and WI, and sell them internationally. What type of resale certificate do I need to fill out to get a sales tax exempt ?

[Bluegrass-Lawncare-LLC]

Great video, but I still didn’t get how to get a tax exempt. Here is my question. I have a manufacturer here in Utah that makes our product, he suggested I get a tax exemption number so I don’t have to pay tax on the manufactured product since I’m selling it to the consumer. Can I get a tax exemption? And if so how? the TC 721 form in the Utah tax website is the certificate but does not have a number, is this all I need? We can not figure out how to get a tax exemption number. Does the supplier fill that form out? Just confusing. Thank you

[aldensouthwick]

One thing you didn't mention, when I purchase a machine for my woodshop to help manufacture the items that I sell, am I required to pay the sales tax or can I claim an exemption?

[absalomespinoza]

Hi, I would like information about getting the tax exemption in California

[catsaffiliatemarketinghelp]

I would like to purchase sublimation tumblers through Alibaba in bulk. Nothing in the thousands. I'm targeting selling my crafts at fairs. Would I need to pay taxes on my items? Alibaba is asking me to submit a tax exempt form.

[renzoranillasanchez]

Hola, soy de Perú.
Estoy enviando triangulando con Miami. Estoy enviando de manera marítima a EEUU y luego pasarlo a aéreo para Perú.
Pero estoy pagando impuestos (Taxes) en Miami. No estoy vendiendo los productos en EEUU, solo están transitando por ahí. ¿tambíen debo pagar impuestos?

[gustavomaciel]

I'm in California. I make plastic worms for fishing. I am not selling to anyone. The supplier i deal with wants a excempt form. I called the Ca.gov. they didn't know what I needed. I am trying to buy a 55 gl barrel. Need help on what form

[jhonroa]

Hi, I make purchases on EBAY and they charge me taxes, I live in Venezuela but I have a locker in Miami, I contacted support and they told me to send a tax exemption document.

My question is, where do I get the document to send?