Multiple Points of Use (MPU) certificate management

Introduction

Certain products — such as software, digital goods, and services — are purchased from a single location but used concurrently across multiple jurisdictions. Some jurisdictions acknowledge this with a multiple points of use (MPU) exemption, which lets the buyer pay sales tax only on the portion of the product used within a given jurisdiction. This is commonly called apportionment of use.

Anrok doesn't automatically apportion sales tax based on a customer's use within a jurisdiction. Instead, you upload the customer's MPU certificate and associate it with the buyer, setting an exempt percentage per jurisdiction. Because MPU shifts the compliance obligation to the buyer and creates a non-taxed sale on your side, handling these certificates carefully is essential for staying audit-ready. See Multiple Points of Use (MPU) policy.

Confirm the exemption applies

MPU is not a universal exemption. Before accepting a certificate, it's your responsibility to confirm the following:

• The product qualifies — MPU applies only to software, digital goods, and services that can be used concurrently across multiple jurisdictions, not to physical goods or other single-use items.
• The jurisdiction recognizes MPU — Only certain jurisdictions offer an MPU or apportionment exemption. Verify that the jurisdiction on the certificate permits this treatment before relieving tax.
• The jurisdiction's level of relief — Even among jurisdictions that offer an MPU exemption, each differs on whether it allows the full invoice amount to shift to the buyer as a use tax obligation, or allows the seller to charge sales tax on one jurisdiction based on use.
• The buyer's use fits the claim — The buyer is responsible for determining that they're making an exempt purchase, but you should sanity-check that a multi-jurisdiction use claim is reasonable for the product being sold.

When in doubt about whether a jurisdiction supports MPU treatment, confirm with your company's Tax team or a tax advisor before exempting the sale rather than after.

Validate the certificate before accepting it

An exemption certificate is accepted in good faith, meaning you can generally rely on the buyer's claim as long as the certificate is properly completed. The burden of proof, however, falls on you as the seller during an audit — so validation matters. Before accepting a certificate, check that:

• The business name on the certificate matches the buyer, including any identifying or registration numbers.
• The certificate is within a valid date range and not expired.
• The exemption reason is clearly stated as MPU or apportionment of use.
• The certificate is signed.

If a buyer doesn't provide a valid certificate, you're required to charge and remit sales tax, since without documentation you'll be unable to support the non-taxed sale on audit. Some states, such as Maryland, require you to check the state database to verify that the buyer is registered with the state.

Full vs. partial MPU exemptions

How much you exempt depends on whether the jurisdiction grants full or partial relief. Selecting Multiple Points of Use (Single Juris Partial Exemption) as the certificate type is what makes the Exempt percentage field appear under Jurisdiction details — if you choose any other certificate type, the field won't show.

• Full exemption — Enter 100% as the exempt percentage for the jurisdiction. The customer is exempt from sales tax and becomes responsible for remitting use tax on the full invoice amount where the product is used. This is the simplest approach for most sellers, since it places MPU tax remittance on the customer, where it belongs under the exemption. Jurisdictions that fully relieve the seller once an MPU certificate is received include Maryland, Massachusetts, Minnesota, Ohio, Tennessee, Texas, and Washington.
• Partial exemption — Enter a partial percentage as the exempt percentage for the jurisdiction. This percentage is determined by the buyer for the jurisdiction the certificate applies to, not by you. The customer is then responsible for remitting use tax on the remainder of the invoice. This charges tax only on the single jurisdiction you determine — it won't charge tax on the remaining invoice amount across other jurisdictions — and it's designed to reflect a partial exemption of the tax base, not a reduced tax rate. Jurisdictions with partial exemptions include New York, Pennsylvania, Utah, and the City of Chicago.

Upload an MPU certificate in Anrok

You can upload a customer's MPU certificate into Anrok and associate it with the buyer so the exempt percentage applies to their transactions.

1. In the Anrok app , go to Certificates. Take me there!

2. Select Add or request certificate, then click Upload a certificate.

   Tip

   Customers on Anrok's Custom plan can automatically prefill certificate information using AI. Please submit this form to upgrade and unlock AI prefill capabilities.

3. Under Customer details, search for the customer in the search bar. If the customer does not exist in Anrok yet (e.g., you have not created an invoice for the customer yet), click +Add customer, then enter the Customer ID and Customer name. When entering the customer ID, be sure to add the billing system: prefix so that it maps to your billing system successfully. For example, if the customer ID is 10000 in NetSuite, you would enter netsuite:10000 as the customer ID in Anrok.
4. Under Certificate details, enter the Exemption number and Exemption start date, then upload the exemption certificate.
5. Under Certificate type, select Multiple Points of Use (Single Juris Partial Exemption).
6. Under Jurisdiction details, enter the Jurisdiction and Registration ID where the exemption certificate is valid. To add more, select +Add a jurisdiction.
7. Under Exempt percentage, enter the percent of sales that are exempt. If applicable, enter the Exemption expiration date.
8. When you are finished adding the certificate's details, click Save.
9. Under Reprocess customer transactions, select the Start date and End date for the transactions you want reprocessed to apply the certificate.
10. If the customer's address has changed, select the checkbox next to Prioritize customer address over invoice address.
11. Click Next, then acknowledge the potential impact of these changes.
12. When you're finished reviewing, click Start.

Maintain MPU certificates for audit

Each state has statutory retention requirements for exemption certificates, so check each state's statutes and regulations for the applicable period you must retain them. MPU arrangements in particular draw scrutiny, because they result in non-taxed sales that depend on the buyer meeting their own use-tax obligations. Keep a clear, retrievable record of:

• The MPU certificate itself.
• The customer's intended use allocation across jurisdictions.
• The date range the exemption applies to, along with any supporting correspondence.

Organizing certificates with clear customer-to-transaction associations makes it far easier to match exempt sales to their supporting documentation during an audit.