Multistate Tax Commission Multijurisdiction Resale Certificates
The Multistate Tax Commission (MTC) issued the multijurisdiction resale certificate (MTC certificate) in July 2000 to provide a standard document for businesses to utilize that will be uniformly accepted by sellers. Along with many other states, California adopted the MTC certificate. The certificate contains all of the required elements stated in Regulation 1668, Resale Certificates, and can be furnished as either a “blanket” or a “qualified” certificate. Under a blanket MTC certificate, all tangible personal property described on the certificate is deemed to be sold for resale unless the resale certificate is superseded by a purchase order. To be accepted as a blanket resale certificate, the purchaser must complete the form in its entirety and add a general description of tangible personal property or taxable services to be purchased from the seller. All sales of property stated to be for resale on the certificate can then be sold to the purchaser without tax. If the purchaser subsequently issues a purchase order indicating that the purchase is taxable, the resale certificate does not apply to that purchase. However, the burden is on the purchaser to establish that the purchase order was sent to and received by the seller in a timely manner or that the tax was paid to the seller.
When a purchaser issues a qualified MTC certificate, the burden is upon the seller to examine each purchase order issued by its customer to determine if the purchase is subject to tax or is for resale. To be accepted as a qualified resale certificate, the certificate must be completed in its entirety and the “general description” line should contain the statement “see purchase order” or be left blank. Each purchase order must specify whether the property covered by the order is for resale or taxable. An example of the multijurisdiction MTC Uniform Sales & Use Tax Certificate can be found on the Multistate Taxation Commission website.
Our best stuff: secrets, tax saving tools, and tax defense strategies from the braintrust at Brotman Law.
These ten big ideas will change the way you think about your taxes and your business.
Find the articles and videos you need to make the right tax decisions in the learning center.
It is not just about what we do, but who we are, why we do it, and how that benefits you.
Meet with us to outline your strategy. No further obligation, 100% money-back guarantee.
IRS Circular 230 Disclosure: To ensure compliance with requirements imposed by the IRS, I must inform you that any U.S. federal tax advice contained in this website is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter contained in this website.