A sales tax exemption is when a purchaser can legally make a tax-free purchase with the help of an exemption certificate. This certificate documents the exemption the purchaser claims to make a tax-free purchase. Common types of exemptions include Multiple Points of Use Exemption, Non-Profit Exemption, and Resale Exemption.See What is sales tax exemption?
If one of your customers has an exemption certificate, you are responsible for determining whether they are making an exempt purchase and adequately completing the exemption certificate. Once the certificate is verified, you can add the certificate to Anrok to prevent tax from being applied to the customer's invoices.
If one of your customers opts to self-assess and report sales tax to the jurisdiction directly, you can upload their direct payment permit Direct Payment Permit
A permit that allows the holder to purchase tangible personal property for use without paying tax or tax reimbursement to the seller from whom the purchase is made.
This relieves that seller from liability for tax on the transaction, provided that the seller obtains the direct payment permit from the purchaser., which will function in Anrok similarly to an exemption certificate and prevent tax from being calculated on their invoices.
Upload a tax exemption certificate
You can upload a customer's tax exemption certificates into Anrok to prevent tax from being calculated on their transactions.
Note: Once an exemption certificate is uploaded, it will only automatically apply to new transactions created moving forward and will not apply to prior transactions. If you need an exemption certificate to apply to a previous transaction, please contact firstname.lastname@example.org.
Try uploading a tax exemption certificate in the demo above ☝️
- In the Anrok app , go to Certificates. Take me there!
- Click Add certificate, then under Customer details, search for the customer in the search bar. If the customer does not exist in Anrok yet, click +Add customer.
- Under Certificate details, upload the exemption certificate, then enter the Start date.
- Under Jurisdiction details, enter the Jurisdiction where the exemption certificate is valid. If there are multiple jurisdictions, you can select +Add a jurisdiction.
- When you are finished, click Save.
If you have any questions about how to add sales tax exemption certificates in Anrok, please feel free to contact us at email@example.com for more information.