Before your company can begin to submit or collect a valid resale exemption certificate on a drop shipment transaction, it’s important to understand your responsibilities to the state.
This reference guide will help you determine:
- Who is responsible for sales and use tax in a drop shipping transaction
- When to provide or request a sales tax exemption certificate
- How to ensure the certificate is thoroughly and correctly completed
Use this guide to help your organization decide how to handle sales tax nexus and exemption certificates in each state where a drop shipment takes place.