If a drop shipper delivers a product to the seller`s customer in an optimized full Member State, the seller can use the seller`s seller`s vat registration number on the exemption certificate made available to the Drop Shipper. The seller is not required to provide a VAT registration number from the state where the sale is purchased when purchasing products for resale. Did you know that you can avoid paying most of VAT by purchasing retail products for resale? Sellers and suppliers should check with each country where they have sales to find out if they should register and collect and transfer VAT, or review the rules for remote sellers and marketplace sellers. Here are the basics of how you can obtain, complete and use this certificate and what you can do if you received one. They must either keep a completed certificate of exception or register and store standard data elements of the certificate electronically. (Rule SSTGB 317.1.A.10) Do I need to receive and keep paper copies of exemption certificates from my clients? If you have questions about the certificate, you can check the questions frequently asked by the North Carolina Department of Sales and Use of Sales and Use Tax or the Taxpayer Assistance and Collection Center at 1-877-252-3052 (no charge). If the seller does not collect or transfer the VAT due, the customer must transfer the tax directly to the state, unless the customer can apply for a valid exemption. If you are a seller with Nexus in North Carolina and a buyer provides the certificate of sale and use of the exemption for the purchase of items for resale, you must ensure that the buyer has completed and signed the form in its entirety. If the resale field is activated as the reason for the exemption, you should verify that they have provided a sales number for sales in North Carolina, and use the tax account id number. If you wish to apply for a turnover exemption or use the tax on your purchases, contact the state in which you are applying for the exemption.
North Carolina has a fairly simple process for using a resale certificate. First, you must be registered for your VAT authorization in North Carolina (remember that you must withdraw VAT from your customers in North Carolina). So just print out the E-595E Streamlined Sales and Use Tax Agreement Certificate of Exemptions and do the following: Do you have any questions or something to say? Start the conversation in the comments! Don`t you want to track the vat yourself? Let TaxJar automate it for you! You will find other documents attesting that the state accepts the use of your exemption or resale number in the state`s certificate of compliance. To view the direct delivery criteria, click on the status to open the certificate. Then scroll to the #317080 section. Be sure to represent every certificate your company receives for audit purposes. The good news is that North Carolina does not have a “hooked” seller if the resale certificate is fraudulent, provided the certificate is complete and you have accepted it in good faith.