Form ST-120 at a glance
What it is: Form ST-120, Resale Certificate, is a sales tax exemption certificate.
A filled-in Form ST-120 example: a registered New York vendor buys clothing for resale
How to fill out Form ST-120, box by box
Tap a group of boxes to open it, and a picture to see it full size.
Seller and purchaser
Write the Name of seller and the Name of purchaser, each Street address, and the City, State and ZIP code for each.
To the Purchaser: enter all the information requested on the front of this form.
Single-use certificate Blanket certificate
Mark an X in the appropriate box: Single-use certificate Blanket certificate; temporary vendors must issue a single-use certificate. 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.
Purchaser information
Purchaser information: write what you are engaged in the business of and what you 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
Part 1 - To be completed by registered New York State sales tax vendors: I certify that I am:
Check a New York State vendor (including a hotel or short-term rental unit operator or a dues or admissions recipient), show vendor or entertainment vendor, and write the valid sales tax identification number.
Check a New York State temporary vendor, and write the valid sales tax identification number and fill in and expires on.
I am purchasing:
Check A for 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; or 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.
Check B for a service for resale, including the servicing of tangible personal property held for sale.
Check C for restaurant-type food, heated food, or heated drink for resale.
Part 2 - To be completed by non-New York State purchasers
Part 2 - To be completed by non-New York State purchasers.
Certify that you are not registered nor am you required to be registered as a New York State sales tax vendor; write the state/jurisdiction where you are registered to collect sales tax or value added tax (VAT) and your 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.
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: delivered by the seller to the purchaser's customer or to an unaffiliated fulfillment service provider located in New York State (delivered by the seller includes delivery in the seller's own vehicle or by common carrier, regardless of who arranges for the transportation), or delivered to the purchaser in New York State, but resold from a business located outside the state.
Check D for tangible personal property (other than motor fuel or diesel motor fuel) for resale, when it is being delivered directly by the seller to my customer or to an unaffiliated fulfillment services provider in New York State.
Check E for tangible personal property for resale that will be resold from a business located outside New York State.
Certification
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.
More rules for Form ST-120
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.
This certificate is only for use by a purchaser who: 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
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.
Revocation of your Certificate of Authority, if you are required to be registered as a vendor.
Sales tax
To the Seller
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.
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.
Contractors
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.
Non-New York State purchasers: registration requirements
Non-New York State purchasers: registration requirements. A business that has no physical presence in New York State but meets certain criteria must be registered as a New York State vendor. If it has not already done so, the business is required to register as a vendor immediately.
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.
Common questions about Form ST-120
Who is responsible for sales tax exemption?
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.
What is the ST-120 form used for in New York?
Form ST-120, Resale Certificate, is a sales tax exemption certificate.
Who signs it?
Type or print the Name and title of owner, partner, or authorized person of purchaser; the owner, partner, or authorized person of purchaser signs on the Signature of owner, partner, or authorized person of purchaser line, and write the Date prepared.
Is there a deadline?
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. 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.
Is there a penalty?
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 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.
When is this form not the right one?
Limitations on use: contractors cannot use this certificate. This certificate may not be used to purchase motor fuel or diesel motor fuel. This certificate does not exempt prepaid sales tax on cigarettes.
Sources
[1] Form ST-120 (1/26), New York State and Local Sales and Use Tax Resale Certificate, Department of Taxation and Finance (the Official source link on this page).