Form Pub Ks-1520 - Kansas Exemption Certificates Page 3
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49ACCEPTING EXEMPTION CERTIFICATES
RETAILER
RESPONSIBILITIES
An exemption certificate relieves a seller from
collecting sales tax if it has obtained the required
identifying information as determined by the director
and the reason for claiming the exemption at the time
THE CARDINAL RULE
of purchase. A seller should:
Kansas retailers are responsible for collecting the
1) verify the identity of the person or entity presenting
full amount of sales tax due on each sale to the final
the exemption certificate; and
user or consumer. All Kansas retailers should follow this
2) maintain the fully completed exemption certificate
cardinal rule:
in your sales tax records for at least three (3) years.
All retail sales of goods and enumerated
You should obtain the appropriate exemption
taxable services are considered taxable
certificate from your customer at the time of the sale
unless specifically exempt.
and no later than 90 days subsequent to the date of
sale.
Therefore, for every sale of merchandise or taxable
service in Kansas, the sales receipt, invoice, or bill
However, some customers claim to be exempt only
MUST either:
after the goods or services have been delivered, and
deduct the tax from the bill. When this happens, you
• show that the total amount of sales tax due
are still responsible for obtaining an exemption certificate
was collected, or
from the customer. If you are unable to secure an
• be accompanied by a Kansas exemption
exemption certificate the sale is considered taxable, and
certificate or Form PR-78SSTA.
as the retailer, you will be liable for the tax.
WHAT IS AN EXEMPTION CERTIFICATE?
BLANKET EXEMPTION CERTIFICATES
If you make recurring exempt sales of the same type
An exemption certificate is a document that a buyer
to the same customer, you are not expected to obtain
presents to a retailer to claim exemption from Kansas
an exemption certificate for each transaction. Kansas
sales or use tax. It shows why sales tax was not charged
law provides that a seller is relieved of liability for the
on a retail sale of goods or taxable services. The buyer
tax when he obtains a blanket exemption certificate from
completes and furnishes the exemption certificate, and
a purchaser with which the seller has a “recurring
the seller keeps the certificate on file with other sales
business relationship”. Such certificate need not be
tax records.
renewed or updated when there is a recurring business
relationship between the buyer and seller. A “recurring
An exemption certificate must be completed in its
business relationship” exists when a period of no more
entirety, and should:
than 12 months elapses between sales. All of the
certificates in this booklet may be used as blanket
• explain why the sale is exempt,
certificates.
• be dated,
• describe the property being purchased unless
All Tax-Exempt Entity Exemption Certificates (sample
using Form PR-78SSTA, and
on page 16) contain an expiration date. If a Tax-Exempt
• contain the seller’s name and address and the
Entity Exemption Certificate is obtained by the seller it
buyer’s name, address, and signature.
can be used for all sales made prior to the expiration
date as provided on the certificate. There is no need
Some exemption certificates also require a buyer to
for the seller to obtain multiple copies of this Tax-Exempt
furnish the Kansas tax account number or request a
Entity Certificate.
description of the buyer’s business. The exemption
certificates for nonprofit organizations require the
RECORD KEEPING
exempt entity’s tax ID number.
The Kansas exemption certificates, including Form
You must keep all sales tax records, including
PR-78SSTA, beginning on page 18 meet these
exemption certificates, for your current year of business
requirements. When the appropriate certificate is used,
and at least three prior years. DO NOT send exemption
and all the blanks are accurately filled out, the certificate
certificates to KDOR (Kansas Department of Revenue)
may be accepted by a retailer.
with your sales tax return.
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