The Vermont S 3 form serves as a Sales Tax Exemption Certificate, allowing certain buyers to make tax-exempt purchases for resale or by qualifying organizations. This form is essential for individuals and entities that meet specific criteria, such as 501(c)(3) organizations or government units. To ensure compliance and benefit from the exemptions, it is important to fill out the form accurately and submit it to the seller.
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The Vermont S-3 form serves as a crucial tool for buyers looking to make tax-exempt purchases in specific situations. Primarily, this form is utilized for purchases made for resale or by organizations recognized as 501(c)(3) entities, which include religious, educational, or scientific organizations. Additionally, government units at both the federal and state levels can use this form to facilitate direct payments without incurring sales tax. Volunteer fire departments, ambulance companies, and rescue squads also benefit from this exemption. It is essential to note that the S-3 form must be presented to the seller at the time of purchase and is not applicable for contractors, who are required to pay sales tax on materials used in construction. The form includes sections for detailing the buyer's information, the seller's details, and the nature of the items being purchased. Buyers must provide their Vermont Sales & Use Tax Account Number, if applicable, and certify the accuracy of the information provided. Sellers who accept this form in good faith are relieved from the liability of collecting sales tax, provided they meet specific conditions outlined in the form's instructions. Retaining these exemption certificates for a minimum of three years is also necessary for sellers to substantiate their tax-exempt transactions. Understanding the Vermont S-3 form is vital for both buyers and sellers to ensure compliance with state tax regulations while facilitating legitimate tax-exempt purchases.
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Vermont Sales Tax Exemption Certificate
for
PURCHASES FOR RESALE, BY EXEMPT ORGANIZATIONS, AND
BY DIRECT PAY PERMIT
32 V.S.A. § 9701(5); § 9743(1)-(3); § 9745
FORM
S-3
To be filed with the SELLER, not with the Vermont Department of Taxes.
Single Purchase - Enter Purchase Price $ __________________
Multiple Purchase (effective for subsequent purchases.)
BUYER
Buyer's Name
Federal ID Number
Trading as
Telephone Number
Address
City
State
ZIP Code
Buyer’s Primary Business
SELLER
Seller's Name
EXEMPTION CLAIMED
DESCRIPTION. Description of purchased articles
BASIS FOR EXEMPTION
For resale/wholesale
Vermont Sales & Use Tax Account Number: _________________________
Purchase by 501(c)(3) organization
. . . . . . . . . . . . . .Vermont Account Number: _________________________
Direct payment by federal or Vermont governmental unit
Direct Pay Permit
. . . . . . . . . . . . . . . . . . . . . . . . . . . .
Permit #: _________________________
Purchases by 501(c)5 organization presenting fairs, field days, or festivals. . .
. Events: _________________________
. . . . . . . . . . . . . . . . . . . . . . . . . .
. . Dates: _________________________
Purchase by volunteer fire department, ambulance company, rescue squad. (Registration is not required.)
SIGNATURE
I certify that I have read and complied with the instructions provided with respect to the use of this Exemption Certificate. I further certify that the above statements are true, complete, and correct, and that no material information has been omitted.
Signature of Buyer or Authorized Agent
Title
Date
Form S-3
This form may be photocopied.
Page 1 of 3
Rev. 07/21
FORM S-3 Instructions
Vermont Sales Tax Exemption Certificate for
Purchases for Resale, by Exempt Organizations, and by Direct Pay Permit
This exemption certificate does not apply to contractors.
General Information
Please print in BLUE or BLACK ink only.
This exemption certificate applies to the following:
•Purchase(s) of tangible personal property for the purpose of resale
•Purchase(s) by an organization which is designated as a 501(c)(3) by the Internal Revenue Service, or agricultural organizations qualified for exempt status under § 501(c)(5) when presenting agricultural fairs, field days, or festivals
•Purchase(s) by a Federal or Vermont governmental unit (direct payment)
•Purchase(s) using a Direct Pay Permit
•Purchase(s) by a volunteer fire department, ambulance company, or rescue squad
Please note: Civic, social, recreational, and business league organizations are not 501(c)(3) organizations, and therefore cannot make exempt purchases.
Accepting an Exemption Certificate in “Good Faith”
The buyer must present to the seller an accurate and properly executed exemption certificate for the exempted sale. The responsibility is on the seller to determine if the buyer is submitting the exemption certificate in “good faith.” This requires the seller to be familiar with Vermont Sales and Use Tax law and regulations, including exemptions, that apply to the seller’s business. If the buyer provides a certificate that is not valid, i.e., the item purchased does not qualify for the exemption, this is not in good faith and the seller should not accept the certificate. When the seller accepts the certificate in good faith, the seller is not liable for collecting and remitting Vermont Sales Tax.
An exemption certificate is received at the time of sale in good faith when all of the following conditions are met:
•The certificate contains no statement or entry which the seller knows, or has reason to know, is false or misleading.
•The certification is on an exemption form issued by the Vermont Department of Taxes or a form with substantially identical language.
•The certificate is signed, dated and complete (all applicable sections and fields completed).
•The property purchased is of a type ordinarily used for the stated purpose, or the exempt use is explained.
Page 2 of 3 Rev. 07/21
Burden of Proof
The burden of proof is on the seller to demonstrate the certificate was taken in good faith. If the seller cannot provide an exemption certificate showing that the sale was exempt, the Department will seek to collect tax from the seller. If, however, the seller can prove the buyer’s claim for the exemption was false, the Department will seek to collect the tax from the buyer.
Obtaining the Exemption Certificate
The seller must obtain an exemption certificate from the buyer either prior to or at the time of the sale. If the certificate is not available at the time of sale, the seller has 90 days after the sale to obtain a fully executed certificate, accepted in good faith.
Retaining the Exemption Certificate
Sellers must retain exemption certificates for at least three years from the date of the last sale covered by the certificate to document why the tax was not collected from the buyer.
Multiple Purchase Exemption Certificates
If the buyer presents a “Multiple Purchase” exemption certificate to the seller, it may be used only when purchasing tangible personal property for use as indicated on this exemption certificate. For each purchase covered by the exemption certificate, the sales slip or invoice must show the buyer’s name and address sufficient to link the purchase to the exemption certificate on file.
Other types of exemption certificates that may be applicable are available on our website at tax.vermont.gov/business-and-corp/nonprofit-and-exempt-organizations/exemption-certificates/.
For questions regarding how these exemption certificates may be properly applied, please contact the Vermont Department of Taxes at (802) 828-2551.
Page 3 of 3 Rev. 07/21
The Vermont S-3 form is similar to the New York ST-120 form, which is also a sales tax exemption certificate. Both forms are used by buyers to claim exemption from sales tax on purchases intended for resale or by exempt organizations. The ST-120 allows buyers to provide information about their business and the nature of the purchase, just like the S-3. Both forms require the buyer to certify that the information provided is accurate, ensuring accountability in the exemption process. In essence, both documents serve the same purpose of allowing qualified purchasers to make tax-exempt purchases while providing sellers with a way to document the exemption.
Another comparable document is the California BOE-230 form, known as the Resale Certificate. This form is utilized by buyers in California to claim a sales tax exemption for items purchased for resale. Much like the Vermont S-3, the BOE-230 requires buyers to provide their seller’s permit number and details about the items being purchased. Both forms are designed to protect sellers from liability for sales tax when they accept a properly completed exemption certificate. The underlying principle remains the same: to facilitate tax-exempt transactions for eligible buyers.
In addition to the previously mentioned documents, it is important to consider the role of a Texas Bill of Sale form as a vital legal instrument in transactions within the state. This form not only verifies the sale and transfer of ownership between parties but also functions as an essential record of the transaction details. For those looking for resources related to Bill of Sale forms, visit https://toptemplates.info/ to find templates and further information that can assist in ensuring compliance and clarity in sales transactions.
The Texas 01-339 form, also known as the Texas Sales and Use Tax Resale Certificate, is another document that shares similarities with the Vermont S-3. This certificate allows buyers to purchase items tax-free if those items are intended for resale. Both forms require buyers to provide their tax identification number and a description of the purchased items. The Texas certificate, like the Vermont S-3, is meant to provide sellers with assurance that they are not liable for collecting sales tax on exempt purchases, provided the certificate is filled out correctly.
Lastly, the Florida DR-13 form, or the Florida Resale Certificate, offers a similar function. This form is used by Florida buyers to claim an exemption from sales tax on items purchased for resale. Both the DR-13 and the Vermont S-3 require the buyer to declare their intent to resell the purchased items and to provide relevant business information. The DR-13, similar to the S-3, protects sellers from sales tax liability when the form is properly completed and presented at the time of purchase. Thus, both documents serve as essential tools in facilitating tax-exempt transactions for eligible buyers across different states.
Understanding the Vermont S-3 form is crucial for buyers and sellers alike. However, several misconceptions often arise regarding its use and requirements. Below are five common misconceptions explained in detail.