Tax Exempt Certificate

A Tax Exempt Certificate is an official document that allows a buyer to purchase goods or services without paying sales tax. It's typically used by organizations like nonprofits, government agencies, or other entities that are exempt from paying certain taxes due to their status or purpose. The certificate verifies that the buyer qualifies for tax exemption, preventing double taxation. Businesses usually request this certificate from the organization to ensure they do not charge sales tax when making qualifying transactions. Essentially, it benefits the exempted organization by reducing costs related to taxable purchases.