Sales Tax Obligations of Purchasers in Idaho

April 13, 2006

	Visited: 146
	Not rated
	Rate:

Idaho imposes various requirements on purchasers doing business in Idaho. We recommend that you go through the items below to help you with the most frequently asked questions concerning purchasers and sales and use tax issues.

Tax exemption certificates. An exemption certificate may be issued by a purchaser of a nontaxable item. The exemption certificate may be based on the type of transaction (such as a resale exemption) or on the item itself.

Resale exemptions. In Idaho purchases of tangible personal property for purposes of resale are not subject to tax. However, all sales are presumed taxable, and the seller has the burden of proving that a sale is not taxable (unless the seller has a resale certificate on file from you, the purchaser).

Resale exemption certificate. Idaho prescribes forms that are for use as resale certificates. As a purchaser you are allowed to use Form ST-101, Sales Tax Resale or Exemption Certificate, or The Uniform Sales and Use Tax Certificate adopted by the Multistate Tax Commission. In any case, resale certificates must contain the following information:

your (or your agent's) signature as the purchaser
your (or your agent's) name and address as the purchaser
the number of the permit issued to you as the purchaser or that you are an out-of-state retailer
a description of the general character of the tangible personal property sold or rented by you as a purchaser in the regular course of business

Blanket resale certificates. In Idaho you are not required to provide a separate claim form to your seller for each exempt sale. For most exemptions, if you have a resale certificate on file with your seller, it covers all exempt sales from you for the life of your business relationship. Since businesses change hands and the information on these forms can become outdated quickly, it's a good idea for a seller to update the resale and exemption certificate files at least every four years.

Purchases from out-of-state vendors. In Idaho you will generally be allowed a credit for sales or use tax paid in another state for tangible personal property used in Idaho. The amount of the credit may not exceed the amount of the Idaho tax.