St 120 Form PDF Details

For businesses engaging in transactions within New York State, understanding the intricacies of tax exemption forms like the ST-120, New York State and Local Sales and Use Tax Resale Certificate, is crucial. This form serves as a cornerstone for vendors and purchasers involved in the resale of tangible personal property or specific services, affirming that the transaction is not subject to state and local sales taxes. The form is carefully structured to cater to both New York State registered vendors and those outside the state but making taxable sales within. It delineates clear directives for its use, emphasizing that misuse or fraudulent use may result in severe consequences including penalties, fines, or even jail time. Vendors are protected from tax liability if the certificate is valid and accepted in good faith, while purchasers are warned against using the certificate for non-qualifying purchases. The document also specifies conditions under which it can be considered a blanket certificate, applicable to all purchases of the same general type, or a single-use certificate, alongside guidelines for temporary vendors, contractors, and non-New York State purchasers. It is a legal tool designed not only to facilitate business operations by simplifying tax exemption processes but also to ensure compliance and integrity in business transactions relating to resale.

QuestionAnswer
Form NameSt 120 Form
Form Length2 pages
Fillable?No
Fillable fields0
Avg. time to fill out30 sec
Other namesst 120, nys tax exempt form st 120, resale certificate new york, st 120 resale certificate

Form Preview Example

 

New York State Department of Taxation and Finance

 

ST-120

 

New York State and Local Sales and Use Tax

 

 

Resale Certificate

 

(1/11)

 

 

 

 

 

 

 

 

 

Name of seller

 

 

Name of purchaser

 

 

 

 

 

 

 

 

Street address

 

 

Street address

 

 

 

 

 

 

 

 

City

State

ZIP code

City

State

ZIP code

 

 

 

 

 

 

Mark an X in the appropriate box:

Single-use certificate

Temporary vendors must issue a single-use certificate.

Blanket certificate

To the purchaser:

You may not use this certificate to purchase items or services that are not for resale. If you purchase tangible personal property or services for resale, but use or consume the tangible personal property or services yourself in New York State, you must report and pay the unpaid tax directly to New York State. Any misuse of this certificate will result in tax liabilities and substantial penalty and interest.

Purchaser information – please type or print

I am engaged in the business of

 

and principally sell

(Contractors may not use this certificate to purchase materials and supplies.)

Part 1 – To be completed by registered New York State sales tax vendors

I certify that I am:

a New York State vendor (including a hotel operator or a dues or admissions recipient), show vendor or entertainment vendor. My

valid Certificate of Authority number is

 

 

 

 

a New York State temporary vendor. My valid Certificate of Authority number is

 

 

and expires on

I am purchasing:

 

 

 

A. Tangible personal property (other than motor fuel or diesel motor fuel)

 

 

 

for resale in its present form or for resale as a physical component part of tangible personal property;

for use in performing taxable services where the property will become a physical component part of the property upon which the

services will be performed, or the property will actually be transferred to the purchaser of the taxable service in conjunction with the performance of the service; or

B. A service for resale, including the servicing of tangible personal property held for sale.

Part 2 – To be completed by non-New York State purchasers

I certify that I am not registered nor am I required to be registered as a New York State sales tax vendor. I am registered to collect sales

tax or value added tax (VAT) in the following state/jurisdiction

 

 

and have

been issued the following registration number

 

 

(If sales tax or VAT registration is not

required and a registration number is not issued by your home jurisdiction, indicate the location of your business and write not applicable on the line requesting the registration number.)

I am purchasing:

C. Tangible personal property (other than motor fuel or diesel motor fuel) for resale, and it is being delivered directly by the seller to my customer or to an unaffiliated fulfillment services provider in New York State.

D. Tangible personal property for resale that will be resold from a business located outside New York State.

Certification: I certify that the above statements are true, complete, and correct, and that no material information has been omitted. I make these statements and issue this exemption certificate with the knowledge that this document provides evidence that state and local sales or use taxes do not apply to a transaction or transactions for which I tendered this document and that willfully issuing this document with the intent to evade any such tax may constitute a felony or other crime under New York State Law, punishable by a substantial fine and a possible jail sentence. I understand that this document is required to be filed with, and delivered to, the vendor as agent for the Tax Department for the purposes of Tax Law section 1838 and is deemed a document required to be filed with the Tax Department for the purpose of prosecution of offenses. I also understand that the Tax Department is authorized to investigate the validity of tax exclusions or exemptions claimed and the accuracy of any information entered on this document.

Type or print name and title of owner, partner, or authorized person of purchaser

Signature of owner, partner, or authorized person of purchaser

Date prepared

Substantial penalties will result from misuse of this certificate.

ST-120 (1/11) (back)

Instructions

 

Form ST-120, Resale Certificate, is a sales tax exemption certificate.

This certificate is only for use by a purchaser who:

A– is registered as a New York State sales tax vendor and has a valid Certificate of Authority issued by the Tax Department and is making purchases of tangible personal property (other than motor fuel or diesel motor fuel) or services that will be resold or transferred to the purchaser’s customers, or

B– is not required to be registered with the New York State Tax Department;

is registered with another state, the District of Columbia, a province of Canada, or other country, or is located in a state, province, or country which does not require sellers to register for sales tax or VAT purposes; and

is purchasing items for resale that will be either:

1)delivered by the seller to the purchaser’s customer or to an unaffiliated fulfillment service provider located in New York State, or

2)delivered to the purchaser in New York State, but resold from a business located outside the state.

Note: For purposes of 1) above, delivery by the seller includes delivery in the seller’s own vehicle or by common carrier, regardless of who arranges for the transportation.

Non-New York State purchasers: registration requirements

If, among other things, a purchaser has any place of business or salespeople in New York State, or owns or leases tangible personal property in the State, the purchaser is required to be registered for New York State sales tax.

A business must register (unless the business can rebut the statutory presumption as described in TSB-M-08(3.1)S, Additional Information on How Sellers May Rebut the New Presumption Applicable to

the Definition of Sales Tax Vendor as Described in TSB-M-08(3)S ) for New York State sales tax if the business enters into agreements with residents of New York State under which the residents receive consideration for referring potential customers to the business by links on a Web site or otherwise, and the value

of the sales in New York State made by the business through those agreements totals more than $10,000 in the preceding

four sales tax quarters. See TSB-M-08(3)S, New Presumption Applicable to Definition of Sales Tax Vendor, and TSB-M-08(3.1)S.

Also see TSB-M-09(3)S, Definition of a Sales Tax Vendor is Expanded to Include Out-of-State Sellers with Related Businesses in New

York State, for information on sales tax registration requirements for out-of-state businesses with New York affiliates.

A purchaser who is not otherwise required to be registered for New York State sales tax may purchase fulfillment services from an unaffiliated New York fulfillment service provider and have its tangible personal property located on the premises of the provider without being required to be registered for sales tax in New York State.

If you need help determining if you are required to register because you engage in activity in New York State, contact the department (see Need help? ).

If you meet the registration requirements and engage in business activities in New York State without possessing a valid Certificate of Authority, you will be subject to penalty of up to $500 for the first day on which you make a sale or purchase, and up to $200 for each additional day, up to a maximum of $10,000.

To the Purchaser

Enter all the information requested on the front of this form.

You may mark an X in the Blanket certificate box to cover all purchases of the same general type of property or service purchased for resale.

If you do not mark an X in the Blanket certificate box, the certificate will be deemed a Single-use certificate. Temporary vendors may not issue a blanket certificate. A temporary vendor is a vendor (other than a show or entertainment vendor), who, in no more than two consecutive quarters in any 12-month period, makes sales of tangible personal property or services that are subject to tax.

This certificate does not exempt prepaid sales tax on cigarettes. This certificate may not be used to purchase motor fuel or diesel motor fuel.

MISUSE OF THIS CERTICATE

Misuse of this exemption certificate may subject you to serious civil and criminal sanctions in addition to the payment of any tax and interest due. These include:

A penalty equal to 100% of the tax due;

A $50 penalty for each fraudulent exemption certificate issued;

Criminal felony prosecution, punishable by a substantial fine and a possible jail sentence; and

Revocation of your Certificate of Authority, if you are required to be registered as a vendor. See TSB-M-09(17)S, Amendments that Encourage Compliance with the Tax Law and Enhance the Tax Department’s Enforcement Ability, for more information.

To the Seller

If you are a New York State registered vendor and accept an exemption document, you will be protected from liability for the tax, if the certificate is valid.

The certificate will be considered valid if it was:

accepted in good faith;

in the vendor’s possession within 90 days of the transaction; and

properly completed (all required entries were made).

A certificate is accepted in good faith when a seller has no knowledge that the exemption certificate is false or is fraudulently given, and reasonable ordinary due care is exercised in the acceptance of the certificate.

You must get a properly completed exemption certificate from your customer no later than 90 days after the delivery of the property or the performance of the service. When you receive a certificate after the

90 days, both you and the purchaser are subject to the burden of proving that the sale was exempt, and additional documentation may be required. An exemption certificate received on time that is not properly completed will be considered satisfactory if the deficiency is corrected within a reasonable period. You must also maintain a method of associating an invoice (or other source document) for an exempt sale made to a customer with the exemption certificate you have on file from that customer.

Invalid exemption certificates – Sales transactions which are not supported by valid exemption certificates are 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 exemption certificates - You must keep this certificate for at least three years after the due date of the return to which it relates, or the date the return was filed, if later.

Limitations on use

Contractors cannot use this certificate. They must either:

issue Form ST-120.1, Contractor Exempt Purchase Certificate, if the tangible personal property being purchased qualifies for exemption as specified by the certificate, or

issue Form AU-297, Direct Payment Permit, or

pay sales tax at the time of purchase.

Contractors are entitled to a refund or credit of sales tax paid on materials used in repairing, servicing or maintaining real property, if the materials are transferred to the purchaser of the taxable service in conjunction with the performance of the service. For additional information, see Publication 862, Sales and Use Tax Classifications of Capital Improvements and Repairs to Real Property.

Need help?

Internet access: www.tax.ny.gov

(for information, forms, and publications)

Sales Tax Information Center:

(518) 485-2889

To order forms and publications:

(518) 457-5431

Text Telephone (TTY) Hotline

 

(for persons with hearing and

 

speech disabilities using a TTY):

(518) 485-5082

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