We sell vehicles to many types of businesses, some of which are non-profit organizations such as the department of works in Alabama. We haven't verified that these entities are in fact non-profits, but if we have an exemption certificate from the client, is that sufficient?

ANSWER

The BIDaWIZ Team's Answer:

The non-profit organization should have obtained a sales and use tax certificate of exemption by applying for it with the Form ST:EX-A1, which is sent to the Alabama Department of Revenue. They should be able to provide you with the state sales and use tax certificate of exemption Form STE-1. If that is not the case, you need to request one immediately.

References: The Code of Alabama Section 810-6-1-.184
State: Alabama
Sales tax category: Tax Compliance
Product/Service: Vehicles

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