They must either keep a completed certificate of exception or register and store standard data elements of the certificate electronically. (Rule SSTGB 317.1.A.10) A Drop Shipper is required to collect and transfer VAT, except in the event of an exemption. Sellers and suppliers should check with each country where they have sales to find out if they should register and collect and transfer VAT, or review the rules for remote sellers and marketplace sellers. If a drop shipper delivers a product to the seller`s customer in an optimized full Member State, the seller can use the seller`s seller`s vat registration number on the exemption certificate made available to the Drop Shipper. The seller is not required to provide a VAT registration number from the state where the sale is purchased when purchasing products for resale. If you wish to apply for a turnover exemption or use the tax on your purchases, contact the state in which you are applying for the exemption. Sellers registered by the VAT Optimized Registration System (SSTRS) are required to collect and transfer VAT to each state where they are registered if the product sold is purchased in that state. If the seller`s customer provides a certificate of exemption to the seller, the seller should not collect sales or VAT on that transaction. If the seller does not collect or transfer the VAT due, the customer must transfer the tax directly to the state, unless the customer can apply for a valid exemption.
For information about the exceptions or tax authorities of a given state, please contact that state. If the sender receives a fully completed exemption certificate from the seller, the sender of the drop is not responsible for VAT on products provided by the dump sender to the seller`s customer in an optimized Member State. Exception: Tennessee requires the seller to provide Drop Shipper with a Tennessee resale number if the sale is to Tennessee. If your business is registered through the Optimized Registration system, some states may accept your company`s SSTID when you purchase items for resale. Contact the State or download the Tax Exemption Certificate to check the results of Member States` surveys to see if the state accepts your SSTID on the Certificate of Exception. Your supplier delivers products you`ve sold directly to your customers? If so, read the next section on drop shipments for the documentation you need to provide. A „drop-off boat” occurs when a seller sells a product, buys the item from a third party and has the product shipped directly to the seller`s customer. The third-party supplier is designated as a drop sender. You will find other documents attesting that the state accepts the use of your exemption or resale number in the state`s certificate of compliance. To view the direct delivery criteria, click on the status to open the certificate.
Scroll through the #317080 section. They do not need to be registered through the optimized VAT registration system in order to use the optimized exemption certificate. Do not send exemption certificates to the Streamlined Sales Tax Board or to the states. Buyers must provide their supplier with the completed exemption certificate and keep a copy for their registrations.