Free S 3M Vermont Form Open S 3M Vermont Editor

Free S 3M Vermont Form

The S-3M Vermont form is a Sales Tax Exemption Certificate specifically designed for businesses engaged in manufacturing, publishing, research and development, or packaging. This form allows eligible buyers to claim exemptions from sales tax on certain purchases directly related to their business activities. To take advantage of these exemptions, it is crucial to fill out the form accurately and submit it to the seller before completing your transaction.

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The S-3M Vermont form is an important document for businesses involved in manufacturing, publishing, research and development, or packaging. This form serves as a Sales Tax Exemption Certificate, allowing eligible buyers to claim exemptions on certain purchases. It can be used for single purchases or as a multiple purchase certificate, which covers subsequent transactions of the same type of property. Buyers must provide essential information, including their name, address, and Vermont registration certificate number. The form requires a declaration of the specific exemption being claimed, such as machinery and equipment used directly in manufacturing or packaging materials for resale. It is crucial for sellers to accept this certificate in good faith to avoid liability for tax collection. The form must be properly completed and retained by the seller for at least three years. Understanding the requirements and implications of the S-3M form is essential for both buyers and sellers to ensure compliance with Vermont tax regulations.

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Vermont Sales Tax Exemption Certificate

for

MANUFACTURING, PUBLISHING, RESEARCH & DEVELOPMENT, FORM

or PACKAGING

S-3M

 

32 V.S.A. § 9741(14), (15), (16), (24)

 

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

 

Vermont Registration Certificate Number

 

 

 

Trading as

 

Federal ID Number

 

 

 

Address

 

Telephone Number

 

 

 

City

State

ZIP Code

 

 

 

Buyer’s Primary Business

 

 

 

 

 

 

 

 

SELLER

Seller's Name

Address

City

State

ZIP Code

 

 

 

 

 

 

EXEMPTION CLAIMED

DESCRIPTION. Description of purchased articles

BASIS FOR EXEMPTION

Property consumed in manufacturing tangible personal property for sale.

Machinery and equipment used in or consumed as an integral or essential part of an integrated manufacturing production operation.

Packaging or shipping materials for use by a manufacturer or wholesale distributor.

Property for use or consumption directly and exclusively in commercial, industrial, or agricultural research or development.

Protective glasses, gloves, and other materials used or consumed exclusively in the manufacturing of tangible personal property for sale.

SIGNATURE

I certify that, to the best of my knowledge and belief, the statements provided here are true and correct.

Signature of Buyer or Authorized Agent

Title

Date

Form S-3M

This form may be photocopied.

Page 1 of 1

Rev. 09/22

 

FORM S-3M Instructions

Vermont Sales Tax Exemption Certificate for

Manufacturing, Publishing, Research & Development, or Packaging

General Information

Please print in BLUE or BLACK ink only.

Tangible personal property is property which can be seen, touched, and measured.

The term “distributor” does not include retailers selling directly to the ultimate consumer. Retail stores of all kinds and restaurants are not included in the terms “manufacturer” or “distributor.”

Tangible personal property that becomes an ingredient or component part of, or is consumed or destroyed in the manufacture of property for sale is exempt. Further, machinery and equipment used in or

consumed as an integral or essential part of an integrated production operation by a manufacturing plant is exempt. Where manufacturing begins and ends is described in 32 V.S.A. § 9741(14). Pre- manufacturing and post-manufacturing do not qualify for this exemption except for machinery used for packaging and quality control – this machinery is exempt even if used after the manufacturing process is complete. Examples of activities not qualifying include procuring raw materials, storing raw materials and finished goods, and administrative business operations.

Form S-3F should be used for purchases of fuel or electricity used directly or indirectly in manufacturing.

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.

Form S-3M Instructions

Page 1 of 2 Rev. 09/22

Improper Certificate / Lack of Certificate

Sales transactions which are not supported by properly executed exemption certificates shall be deemed to be taxable retail sales. The burden of proof that the tax was not required to be

collected is upon the SELLER.

Retention of Certificates

Certificates must be retained by the seller for a period of not less than three (3) years from the date of the last sale covered by the certificate.

Additional Purchases by Same Buyer

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.

Form S-3M Instructions

Page 2 of 2 Rev. 09/22

Form Characteristics

Fact Name Details
Form Purpose The S-3M form is a Sales Tax Exemption Certificate for manufacturing, publishing, research and development, or packaging in Vermont.
Governing Law This form is governed by 32 V.S.A. §9741(14), (15), (16), (24).
Submission Requirement The form must be filed with the seller, not with the Vermont Department of Taxes.
Types of Purchases Buyers can use the form for single purchases or as a multiple purchase certificate for subsequent transactions.
Exemption Claimed Exemptions can be claimed for property consumed in manufacturing, packaging materials, and machinery used in production.
Good Faith Requirement Sellers accepting the certificate in good faith are relieved from tax liability, provided certain conditions are met.
Certificate Retention Sellers must retain exemption certificates for a minimum of three years from the date of the last sale covered by the certificate.
Improper Certificate Consequence Transactions without properly executed certificates will be deemed taxable, placing the burden of proof on the seller.
Multiple Purchases If the buyer has a multiple purchase certificate, it covers additional purchases of the same type of property.
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