The Vermont S 3 form serves as a Sales Tax Exemption Certificate, allowing buyers to claim exemptions on certain purchases. This form is particularly useful for businesses purchasing items for resale and for exempt organizations, such as 501(c)(3) entities. To ensure compliance and avoid unnecessary tax liabilities, it is essential to fill out this form accurately and submit it to the seller.
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The Vermont S-3 form serves as a vital tool for buyers seeking sales tax exemptions on specific purchases. It is primarily designed for transactions involving tangible personal property intended for resale or for use by exempt organizations, such as those designated as 501(c)(3) by the IRS. Buyers must submit this form to the seller at the time of purchase, ensuring that it includes necessary details such as the buyer's federal ID number and the basis for the exemption. The form accommodates both single and multiple purchases, with the latter allowing for subsequent transactions under the same exemption. Notably, certain entities, including federal or Vermont governmental units and volunteer fire departments, also qualify for exemptions under this certificate. However, it is crucial to understand that contractors cannot use this form, as materials for construction do not qualify. Proper completion and presentation of the S-3 form are essential, as they protect sellers from liability for sales tax collection when accepted in good faith. Sellers are required to retain these certificates for three years to substantiate their tax-exempt sales. Understanding the requirements and proper usage of the Vermont S-3 form can significantly benefit eligible buyers and streamline the purchasing process.
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
Sales Tax in Vt - This exemption does not apply to activities such as procuring raw materials, storing raw materials and finished goods, wrapping or packaging after initial packaging, waste disposal, environmental protection, and business management.
Who Qualifies for Homestead Exemption - Filing this form is crucial for rectifying errors in prior Homestead Declarations, such as mistakenly declaring a non-principal residence.
For those eager to apply, the Chick Fil A Job Application form can be conveniently accessed through smarttemplates.net, making it easier for candidates to express their qualifications and availability.
Vermont Tax Exempt Form - Describes the acceptable use and limits of the certificate to ensure compliance with Vermont tax laws.