In an effort to streamline tax-related processes for businesses and exempt organizations, the Vermont S-3 form serves as a critical instrument for entities seeking relief from the obligation to pay sales tax on qualifying purchases. This form, specifically tailored for purchases intended for resale, as well as those made by exempt or nonprofit organizations such as those with a 501(c)(3) designation, governmental units, and volunteer emergency services, provides a structured path to compliance with Vermont's tax laws. Detailed in the form are sections for both the buyer and seller to fill out, including identification information, the nature of the exemption claimed, and a detailed description of the articles purchased. Notably, the form places an emphasis on the buyer's responsibility to ensure accuracy and compliance, highlighting its importance in the resale and exempt purchase processes. To be utilized effectively, it must be furnished to the seller at the time of purchase or prior, and not directly to the Vermont Department of Taxes, thereby placing the onus on the seller to validate the exemption's legitimacy for the sale at hand. Additional guidance provided underscores the importance of the form in maintaining transparency and accountability in transactions qualifying for tax exemptions, instructing sellers on the retention of certificates for audit purposes and laying out the criteria for what constitutes acceptance of an exemption certificate in "good faith." Through this approach, the Vermont S-3 form fulfills a pivotal role in supporting eligible entities in their operations while ensuring adherence to the state's fiscal regulations.
| Question | Answer |
|---|---|
| Form Name | Vermont Form S 3 |
| Form Length | 3 pages |
| Fillable? | No |
| Fillable fields | 0 |
| Avg. time to fill out | 45 sec |
| Other names | vermont form s 3, vermont sales tax exempt form s 3, vermont sales tax exemption form, vt form s 3 |
BUYER
Vermont Sales Tax Exemption Certiicate |
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FOR |
Form |
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PURCHASES FOR RESALE AND BY EXEMPT ORGANIZATIONS |
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32 V.S.A. § 9701(5); § |
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To be iled with the SELLER, not with the VT Department of Taxes.
Single Purchase - Enter Purchase Price $ __________________
Multiple Purchase (effective for subsequent purchases.)
Buyer’s |
Federal ID |
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Number |
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Name |
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Trading as
Address
City |
State |
Zip |
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Buyer’s Primary
Business
SELLER
Seller’s Name
Address
City
State
Zip
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 which is religious, educational, or scientiic.
Vermont Account Number: ______________________________________________________
Direct payment by Federal or Vermont governmental unit
Purchase by volunteer ire department, ambulance company, rescue squad (Registration is not required.)
I certify that I have read and complied with the instructions provided with respect to the use of this
Exemption Certiicate. 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 AgentTitleDate
This form may be photocopied. |
Form |
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REV. 09/13 |
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Instructions for Use of the Resale Certiicate of Exemption (Form
(This exemption certiicate DOES NOT apply to contractors)
This exemption certiicate applies to the following:
•Purchase(s) of tangible personal property for the purpose
of resale
• Purchase(s) by an organization which is religious, educational, or scientiic and is designated as a 501(c)(3) by the Internal Revenue Service
•Purchase(s) by a Federal or Vermont governmental unit
(direct payment)
•Purchase(s) by a volunteer ire department, ambulance company or rescue squad
This exemption certiicate is not for use by contractors. Materials
purchased for use in construction do not qualify as purchases for resale. Contractors are required to pay sales
tax on tangible personal property incorporated into real estate.
Please note: Civic, social, recreational, and business league organizations are not 501(c)(3) organizations, and therefore cannot make exempt purchases.
Acceptance in “Good Faith”
A seller who accepts an exemption certiicate in “good faith” is relieved of liability for collection or payment of the Vermont Sales and Use Tax otherwise due on tangible personal property covered by the certiicate. Good faith
depends upon a consideration of all the conditions surrounding the transaction. To receive an exemption in good faith, a seller is presumed to be familiar with the law and the regulations pertinent to the business in which the seller deals. In order for good faith to be established, all of the following conditions must be met:
a.The buyer must present the certiicate prior to or at the time of the purchase of the property.
b.The certiicate must contain no statement or entry which the seller knows, or has reason to know, is false or misleading.
c.The certiicate is on an exemption form issued by the Vermont Department of Taxes or a form with substantially identical language.
d.The certiicate must be dated and complete and in accordance with published instructions.
e.The Vermont Sales and Use Tax account number is provided on the certiicate where applicable
f.The property to be purchased is of a type ordinarily used by the buyer for the purpose described on the certiicate.
Improper Certiicate/Lack of Certiicate
Sales of tangible personal property subject to tax which are not supported by properly executed exemption certiicates are taxable retail sales. The burden of proof that the tax was not required to be collected is upon THE seller.
Retention of Certiicates by the Seller
Sellers must retain exemption certiicates for at least three years from the date of the last sale covered by the certiicate to document why tax was not collected from the buyer.
Multiple Purchase Exemption Certiicates
If the buyer presents a “Multiple Purchase” exemption certiicate to the seller, it may be used only when purchasing tangible personal property for use as indicated on this exemption certiicate. For each purchase covered by the exemption certiicate, the sales slip or invoice must show the buyer’s name and address suficient to link the purchase to the exemption certiicate on ile.
Othertypesofexemptioncertiicatesthatmaybeapplicableareavailableonourwebsiteat:http://bit.ly/salestaxexemptions. For questions regarding how these exemption certiicates may be properly applied, please contact the Vermont Department of Taxes at (802)