Arizona – Resale and Exemption Certificates

SALT Report 3268 – Resale and exemption certificates are one of the most (if not the most) impacting errors found during sales and use tax audits.  As technology has progressed the expectation to produce timely, valid documentation has escalated.  Be mindful of this obligation and do your best to ensure proper contemporaneous compliance.  Errors are more easily solved at the time of the transaction as opposed to years later when the questions are asked all at once with short timelines for delivery.

“If a vendor or seller has a “good faith” belief that the purchaser will be reselling the goods or using the goods for an exempt purpose, the sale may be exempt from tax.

The purchaser should present the vendor with a completed Exemption Resale Certificate (Form 5000 or 5000A). A vendor that accepts a certificate in good faith will be relieved of the burden of proof and the purchaser may be required to establish the accuracy of the claimed exemption as provided in Arizona Revised Statute 42-5022.”

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