Tax exempt purchases for business

[jasminsain]

Many businesses qualify for tax-exempt purchases, like resale items, nonprofit use, or manufacturing supplies. Rules differ by state, so it’s important to stay compliant. How does your business handle exemption certificates and audits? Any lessons learned or advice to share with others?

 

[alexie]

Tax-exempt purchases for business are things that are bought without paying sales tax. This is usually because they are going to be used directly for resale, manufacturing, or qualifying nonprofit activities. Businesses must give suppliers a valid exemption certificate. It is important to keep accurate records and follow tax rules because breaking the rules can lead to fines.