For information on a specific state's exemptions or exempt entities, please contact that state.
The Streamlined Sales Tax ® Certificate of Exemption (Exemption Certificate) has been updated. Instructions for purchasers and sellers are on the back side of this form. This form contains the same information as the prior form. You do not need to update the forms you have on file but should use this form going forward.
The Streamlined Sales Tax ® Exemption Certificate and instructions are accepted by all 24 Streamlined member states. Drop shippers and sellers that have products drop shipped to their customers into other states should check with those states to determine their requirements.
Sellers should check with each state in which they have sales to determine if they are required to register and to collect and remit sales tax. Remote sellers and marketplace sellers should review the Remote Seller and Marketplace Seller Guidelines. If registration is required and you have not already done so, you may register directly with the state or by using the Streamlined Sales Tax Registration System (SSTRS) for the 24 member states.
You do not need to be registered through the Streamlined Sales Tax ® Registration System to use the Streamlined Exemption Certificate.
Do not send exemption certificates to the Streamlined Sales Tax Governing Board or to the states.
Purchasers should provide the completed exemption certificate to their supplier and keep a copy for their records.
Not all states allow all exemptions listed on the Streamlined Sales Tax ® Exemption Certificate. An ID number may be required for each state in which you are claiming an exemption. The purchaser must check with each state for exemption information and requirements.
Purchaser ID Numbers for Resale Purchases (Including Drop Shipments):
If registration is required for the state in which you are claiming exemption, provide the ID number for that state on the exemption certificate. If you are not registered in the state you are claiming the tax exemption, provide your sales tax ID number issued by any state, which may be your SSTID. If not registered in any state, follow the remaining instructions on the exemption certificate.
Does your vendor deliver products you sold directly to your customers?
If yes, review the section below on Drop Shipments for the documentation you need to provide.
Sellers are required to collect and remit sales tax in each state in which they are registered when the product sold is sourced to that state. If the seller's customer provides an exemption certificate to the seller for a sale sourced to a Streamlined Member state, the seller should not collect sales or use tax on that transaction. Note: A seller may not accept an exemption certificate for an entity-based exemption on a sale made at a location operated by the seller within the designated state if the state does not allow such entity-based exemption.
The seller is not required to verify the ID number provided by the purchaser or determine the purchaser's registration requirements. (GA requires the seller verify the purchaser's ID number.)
This explains how Streamlined Member States treat drop shipments of tangible personal property that are sourced to a Streamlined Member State. This does not address drop shipments of services and digital products. State laws determine whether a purchaser may provide a supplier or another seller with a resale exemption certificate on the sale of services or digital products.
Drop shipping occurs when a business (seller/retailer) purchases the item it sold from a third-party supplier and has the third-party supplier deliver the product to the business' customer. The third-party supplier is referred to as a drop shipper.
If the Drop Shipper receives a completed exemption certificate from the seller/retailer purchasing the item for resale, the Drop Shipper is not liable for the sales tax on products the Drop Shipper delivers to the seller/retailer's customer in a Streamlined Member state.
The seller/retailer must provide an ID Number for the state in which the seller/retailer is claiming an exemption as explained in the purchaser's instructions on the Streamlined Exemption Certificate. The ID number may be an ID number issued by another state and may result in the same ID number being used for multiple states to claim the resale exemption (e.g., a retailer or remote or marketplace seller may only be required to register for sales tax in one state).
Exception - Beginning January 10, 2022, a drop shipper may accept a resale number issued by the seller's state on an exemption certificate when the drop shipped sale is sourced to Tennessee. Tennessee drop shipment Rule 96 requiring a Tennessee resale number is repealed effective January 10, 2022.
When the seller does not collect and remit the applicable sales tax due, the seller’s customer must remit use tax directly to the state unless the customer can claim a valid exemption.
Additional documentation indicating the state’s acceptance of the use of your exemption or resale number is available on the State's Certificate of Compliance. To view the drop shipment criteria, click on the state in question to open its certificate. Then scroll to section #317080.
If you are seeking an exemption from sales or use tax on your purchases, contact the state in which you are seeking the exemption.
