Exemption certificate: definition, example, and why it matters
Resellers, manufacturers, non-profits, and government buyers can provide an exemption certificate (e.g., a resale certificate). Keep a copy on file — without it, you owe the tax even if the buyer was exempt.
Short definition. A document a buyer provides proving they're exempt from sales tax on a purchase.
Category. Exemption certificate is a tax term used by service businesses when billing customers.
How Glo Invoice handles it. Glo Invoice builds exemption certificate into the invoice itself, so you don't track it on paper or in a spreadsheet.
Frequently asked questions
What does exemption certificate mean?
Resellers, manufacturers, non-profits, and government buyers can provide an exemption certificate (e.g., a resale certificate). Keep a copy on file — without it, you owe the tax even if the buyer was exempt.
Related terms
Sales tax — A tax on the sale of goods (and sometimes services) collected from the customer at checkout.
