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tax certificate of exemption question

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  • tax certificate of exemption question

    BSG asked me to fill out a tax certificate of exemption before I make a purchase. I am in North Carolina, the form is E-595E for those interested.

    I am filling this out, and I see a section called "Reason for Exemption". I am not sure what to do here, any guidance from others that have done this?



  • #2
    This is a standard form in each state, probably named and numbered something different everywhere. The reason you are not going to pay sales tax on anything from them is because you use it to make something that you then charge sales tax on when you sell the finished product. To qualify for this, you will need to have a state resellers license/number for collecting and paying sales taxes to the state. Once you have that, theres usually a place for it on the form, and that is the reason why, you're a reseller and sales tax is only collected at the point of the end user purchasing it.