Exemption certificate
Updated
Definition
A document that supports a tax-free sale for a specific reason — resale, nonprofit organization, government entity, agricultural use. The seller must keep the certificate on file; missing certificates become audit assessments.
Related terms
- Resale certificate— A document a buyer issues to a seller to purchase goods tax-free for the purpose of resell…
Where this applies
- See What is sales tax nexus for the pillar explanation of how nexus works.
- Try the nexus calculator to check your exposure.
- Browse the full glossary for other key terms.