Exemption Certificate Verification Made Easy
Importance of Verification
When accepting a resale or tax exemption certificate, it is important to ensure that a buyer provides you with a valid document.
Due diligence can require verification of tax registration numbers, and confirmation that existing validation processes are setup correctly. A holistic process, one that incorporates transacting party information, your company’s nexus footprint, as well as other relevant factors is necessary to reduce your audit risk.
If you fail to verify all necessary data pertaining to your circumstances, an auditor may deem your resale or tax exemption certificate invalid, which in return can lead to back taxes and penalties.
The Challenges of Verification
While requirements vary by state and purpose, most resale and tax certificates require certain information to be included in the document for it to be considered valid.
This can include names and addresses of purchasers and sellers, description of goods or services being sold, dates, declarations signed under the penalty of perjury, and external verification with tax departments in respective states.
Knowing and implementing the exact process of resale and tax exemption verification per state is the only way to be audit ready.
EXEMPTAX stays on top of complex regulations and provides an intuitive way to link state verifications with your resale and tax exemption certificates.
Our platform provides your business with a comprehensive exemption certificate management (ECM) platform, which enables your customers to fill out tax exemption certificates in an intuitive workflow. Your customers will be guided through a step-by-step process to ensure that they provide you the right tax form for the correct purpose.
You will only receive valid and signed tax certificates, which eliminates the painful back and forth with your customers. With EXEMPTAX, you can eliminate the guesswork once and for all!