Form Dpp1 - Application For Direct Payment Permit Page 7
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9Massachusetts
Department of
Revenue
Form DPP-1-Instructions – Direct Payment Permit Application
General Information
How does a business obtain a
What is a Direct Payment Permit?
Direct Payment Permit?
A Direct Payment Permit Holder may issue a
Complete form DPP-1 and return it to the
certificate to a vendor of an item subject to
Audit Support Unit at the address on the
the Sales tax. This certificate relieves sale
form.
Include all supporting documents.
from taxation at the time of purchase. Permit
Provide an explanation if required. Be sure
holders remit sales tax on taxable purchases
to answer all questions, or indicate why a
directly
to
the
Commonwealth
of
question does not apply. You may submit
Massachusetts on Form ST-9 Monthly
samples to substantiate the response to any
Sales/Use Tax Return.
question.
IMPORTANT: Each business with a
separate
identification
number
must
Who is eligible to obtain a Direct
make
application
separately.
Each
Payment Permit?
business must meet all of the criteria
individually. Applicants may not aggregate
Any purchaser who operates a business and
related business entities to meet the criteria
who acquires tangible personal property
for issuance of a Direct Payment Permit.
subject
to
taxation
may
apply.
The
Commissioner
of
Revenue
has
the
Do all applicants have to be a
discretion to issue a permit and has
registered vendor?
established criteria which must be met
before a permit will be issued. Applicants:
YES. If a business is NOT a REGISTERED
•
VENDOR, it may register as a vendor at the
Are limited to businesses
•
same time as the Application for a Direct
Must be a registered vendor under
Payment Permit is submitted. Form TA-1
Massachusetts General Laws, Chapters
(or Form TA-2, in the case of a business
64H and 64I for the Permit to be issued
which is registered for taxes other than
•
File (or agree to file) monthly sales/use
sales/use) Application for Registration must
tax returns
be completed in detail. Be sure to indicate
•
Purchase in the range of $1,000,000 or
clearly
that
you
are
applying
for
a
more of tangible personal property
Registration as a sales/use tax vendor and a
and/or
taxable
services
subject
to
Direct Payment Permit at the same time.
Massachusetts sales tax per year
•
Exhibit an acceptable record of timely
NOTE:
All taxpayers holding a Direct
filing and payment of Massachusetts
Payment Permit must file all sales/use tax
taxes
returns monthly.
•
Use computerized accounting methods
which track all transactions in an
Call the DOR at 1-617-887-MDOR [6367]
accurate, understandable manner, and
for
questions
about
sales/use
tax
provide an audit trail
registration.
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