In the U.S., businesses with nexus in a particular state are required to charge their customers sales tax on taxable transactions such as retail sales of tangible personal property or taxable services unless, and until, the proper exemption documentation (i.e., an exemption certificate or a resale certificate) has been accepted in good faith from the purchaser. U.S. states generally provide many full or partial exemptions based on the nature of tangible personal property (e.g., groceries, clothing), its use (e.g., manufacturing activities, purchase for resale, etc.) or the type of purchaser (e.g., non-profits and government agencies).
Source BDO
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