Exemption Certificate Management 

We’ll help navigate the diverse forms mandated by individual states

    Exemption Certificate Management

    Efficient management of exemption certificates entails navigating the diverse forms mandated by individual states. These forms are subject to regular updates and expiry dates. Additionally, a range of certificate types exist, tailored for specific purposes, requiring accurate completion and submission. Staying informed about any updates or changes to exemption certificate forms is crucial to maintaining compliance with tax laws. . 

    What is an Exemption Certificate?

    An exemption certificate is an official document issued by a tax authority that grants the holder permission to make purchases without being charged sales tax or similar taxes on those transactions. These certificates are typically used by businesses involved in certain types of activities, or specific entities like nonprofit organizations. 

    How Leyton Provides Exemption Certificate Management (“ECM”)

    1. The preparation and/or review of Exemption Certificates(s) provided by Client (to vendor); 
    2. Verifying the accuracy of Exemption Certificates provided to Client (by customers); 
    3. Notice of upcoming expirations of Exemption Certificates; 
    4. Notice of changes in state documents and/or procedures

    Exemption Certificates you should be aware of

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      Resale Certificate

      This certificate is used by businesses purchasing goods for resale. It exempts them from paying sales tax on those items, as the tax will be collected when the goods are sold to the final consumer.

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      Exempt Use

      This allows entities to make purchases without paying sales tax for specific purchases, such as for manufacturing, R&D, or agricultural activities.

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      Contractors Exemption

      This permit or certificate allows contractors to buy materials for construction projects without paying sales tax. It prevents double taxation by exempting contractors from paying tax on materials that will ultimately be incorporated into their services provided to clients.

    Great People
    Define our Success

    Leyton’s State & Local Tax (SALT) experts work alongside your accountants and automation solutions to ensure that your business has its SALT affairs in order, providing accurate insights that enable sustainable business expansion. Whether it be identifying state tax exposures, rectifying those exposures, or providing advice on an ongoing basis, our experts will guide you through the complexities of SALT in a value-adding and efficient manner.

    Brian Ess, J.D.

    State & Local Tax Practice Leader
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    Our in-house team of highly experienced scientists, engineers, tax consultants and attorneys would love to answer all your questions and support your compliance.

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