Sales Tax Obligations of Purchasers in North Dakota

April 13, 2006

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North Dakota imposes various requirements on purchasers doing business in North Dakota. 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. Sales of tangible personal property for resale are not subject to sales tax. If a resale certificate containing your tax permit number is submitted at the time of purchase, the retailer need not collect the sales tax on the purchase. You must provide the seller with a signed certificate of resale at least once a year.

Resale exemption certificate. North Dakota accepts the multistate exemption certificate for resales. In any case, the following information needs to be included in the resale certificate:

your name and address
the name of the seller to whom the certificate is given
a reason for the exemption
an authorized signature
your license or registration number
the date
and your good faith

Blanket resale certificates. Sellers may accept blanket certificates from you as a purchaser if you repeatedly purchase the same type of property or service for processing or resale. You must provide the seller with a signed certificate of resale at least once a year.

Purchases from out-of-state vendors. In North Dakota, property brought into the state on which a sales or use tax has been paid in another state equal to or in excess of the North Dakota tax is not subject to tax in North Dakota.