Tax

    Exemption certificate

    A document a buyer provides proving they're exempt from sales tax on a purchase.

    Definition

    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.