SALT Report 3269 – 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.
“Legal liability for New Mexico gross receipts tax is placed on sellers and lessors. As a seller or lessor, you may charge the gross receipts tax amount to your customer. A Nontaxable Transaction Certificate (NTTC) obtained from the Taxation and Revenue Department (TRD) allows you as a seller or lessor to deduct the receipts from qualified transactions from your gross receipts.”
“If your customer obtains an NTTC from TRD and executes it to you as seller or lessor, you may exempt your customer from paying gross receipts tax.”
“An NTTC is the only documentation TRD can legally accept as documentation for certain deductions taken by sellers or lessors.”
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