Minnesota is a member of the Streamlined Sales and Use Tax Agreement (SSUTA). These increased efforts are aimed at simplifying and modernising the management of sales and user taxes in order to significantly reduce the burden of tax compliance. This is not the case for ship-shipments of digital services and products. State laws determine whether a seller can issue a resale exemption certificate to a supplier or other seller for the sale of digital services or products. Under the SSUTA, qualified buyers from Minnesota or other member states can claim an exemption from turnover tax by completing an exemption form: when a drop shipper delivers a product to the seller`s customer in an optimized full member state, the seller can use the seller`s VAT registration number from the seller`s state on the exemption certificate made available to the Drop Shipper. The seller is not required to indicate, when purchasing resale products, a VAT registration number of the State in which the sale is made. If you are requesting a sales or use tax exemption on your purchases, contact the state in which you are claiming the exemption. Sellers registered by the Streamlined Sales Tax Registration System (SSTRS) must collect and reject revenue tax in any country where they are registered when the product sold is purchased in that state. If the seller`s customer has a certificate of exemption to the seller, the seller should not collect tax on the sale or use of that transaction. Do I need to obtain and maintain paper exemption certificates from my customers? Additional documentation attesting that the state agrees to the use of your exemption or resale number are available on the state`s certificate of compliance.
To view the scrolling shipment criteria, click the status to open the certificate. Scroll down to the #317080 section. If the drop sender receives a fully completed exemption certificate from the seller, the drop sender shall not be liable for turnover tax on products that the drop sender has delivered to the seller`s customer in an optimised Member State. They must either keep a fully completed exemption certificate or record and retain the standard data elements of the certificate in electronic form. (SSTGB Rule 317.1.A.10) Do not send exemption certificates to the Streamlined Sales Tax Governing Board or the United States. Buyers must present the completed exemption certificate to their supplier and keep a copy of their file. A drop shipper is required to collect and transfer turnover tax, unless it is an exemption. If the seller does not collect and has not paid the applicable turnover tax, the seller`s customer must reject the use tax directly to the state, unless the customer can claim a valid exemption. For information regarding exceptions or exempt entities of a given State, please contact that State. Sellers and suppliers should inquire about whether they should register and register and charge the Turnover TAX or check the guidelines applicable to distance sellers and marketplace sellers. . .