Do You Know How to Handle a Tax Exemption Certificate?

Collecting the sales tax exemption certificate is only one of the five steps you must follow. Do you know the others?

There are many reasons your customers could be eligible for tax-exempt sales. Reselling is one; being a nonprofit is another — and each state has its own rules about these and the countless other reasons your customers might be tax-exempt. It does not matter whyyour customer is eligible for a nontaxable sale; what matters is how your business handles that tax exemption certificate.

Avoid sales-tax troubles. Access the newly available eBook, “5 Steps to Managing Sales Tax Compliance for Exempt Sellers,”for a clear breakdown of your responsibilities.

Understanding Sales Tax Exemptions

In general, your customer must present you with their Sales Tax Exemption Certificate if they expect not to pay sales tax. If valid, this document grants your company “permission” not to charge that customer sales tax.

In addition to having that certificate, you also must have a plan to manage all the certificates you collect over time. If the IRS audits you and you cannot show valid exemption certificates, you could be liable to pay the sales tax on those transactions and any applicable penalties.

What You Will Learn in the eBook

Exemption certificates create a lot of paperwork for you. As your business grows and you handle more tax-exempt sales, you will have increasingly more paperwork and complexity.

The eBook “5 Steps to Managing Sales Tax Compliance for Exempt Sellers” explains how to save time and streamline the process of managing exemption certificates.

In the eBook, you will learn:

• 5 clear steps to take to manage your sales tax exemptions
• 4 critical tasks you must do to prevent potential IRS penalties
• 3 things that exemption certificates need to be valid for IRS records
• How to quickly figure out your correct “economic nexus” — and what to do about it
• 9 ways Avalara & Acumatica streamline your end-to-end exemption certificate process

Manage Sales Tax Exemption Certificates Confidently

Serving an ever-growing number of tax-exempt customers is a sign of success. However, correctly and confidently managing those exemption certificates so you can avoid IRS penalties is an even better sign of success.

Access the eBook to discover what it takes to handle exemption certificates and see how you can easily streamline your sales tax process.

Access the eBook

The team at Platform Technology Advisors provides 30+ years of accounting and wealth management expertise to help you fully understand what you’re getting in accounting and ERP software, along with why it’s so important for your business — all while advising you each step of the way. Contact us to learn more.