PDF document

- 1 -

Vermont Sales Tax Exemption Certificate
for
Form
Agricultural Fertilizers, Pesticides, Supplies,
S-3A
Machinery & Equipment
32 V.S.A. §§ 9741(3), 9741(25) and Reg. 1.9741(3), 1.9741(25)

Note for the BUYER: The buyer must read and follow all instructions on page 3 prior to completing and signing.
The buyer must file the certificate with the seller, not the Department of Taxes.
Note for the SELLER: The seller must retain an exemption certificate for every exempt transaction.
Purchases of machinery and equipment require a certificate for every individual purchase. Multiple purchases of the same
agricultural supplies not typically used in agriculture or the same fertilizer and pesticides may use the same certificate by
marking the appropriate checkbox. An exemption certificate that is accepted in good faith by the seller relieves the seller
of liability for tax due. More information on multiple purchases and "good faith" can be found in the instructions on page 3
of this form.

BUYER
Buyer's Name Farm Name (if applicable) SSN or FEIN

Address Telephone Number

City State ZIP Code

SELLER
Seller's Name

Address

City State ZIP Code

AGRICULTURAL MACHINERY & EQUIPMENT (including parts)
NOTE: You must complete a certificate for each purchase of machinery or equipment.
This exemption is based on how the product is used. Please explain exactly how the product will be used.
Item Purchased Serial Number (if applicable) Date Price

Describe how the item will be used

 MULTIPLE PURCHASES Check this box if you anticipate multiple purchases of parts for the exempt machinery or
equipment listed in this section. You do not have to submit a new exemption certificate for future purchases. However,
the purchase of parts for different exempt machinery or equipment requires a separate exemption certificate.
The exemption certificate must be renewed every three years.

(continued on next page)
Form S-3A
Page 1 of 4
This form may be photocopied. Rev. 07/16

- 2 -

Buyer's Name SSN or FEIN

AGRICULTURAL SUPPLIES NOT TYPICALLY USED IN AGRICULTURE
Please review the instructions for a list of agricultural supplies for which this exemption is available. Be aware that agricultural
supplies that are listed and typically used in agriculture do not require an exemption certificate as they are tax-exempt no
matter who purchases the supplies.
This exemption is based on how the product is used. Please explain exactly how the product will be used.
Item Purchased Price

Describe how the item will be used

 MULTIPLE PURCHASES Check this box if you anticipate multiple purchases of this exact product for the same exact
exempt use. You do not have to submit a new exemption certificate for future purchases. However, the purchase of
other products or the purchase of the same product for a different exempt use requires a separate exemption certificate.
The exemption certificate must be renewed every three years.

FERTILIZERS & PESTICIDES
Fertilizers and pesticides are only exempt if they are used to produce tangible personal property for sale by farms, orchards,
nurseries, and greenhouses.
This exemption is based on how the product is used. Please explain exactly how the product will be used.
Item Purchased Price

Describe how the item will be used

SIGNATURE
To certify, you must read and agree by checking the boxes prior to signing.

 I have read all instructions.
 I certify that the above item(s) will be used directly to produce products for sale on a farm, orchard, nursery, greenhouse,
or similar structure. In the case of agricultural machinery and equipment, I certify that the item will be used at least
75% of the time to produce crops, dairy products, maple syrup, or raise livestock.

Signature of Buyer or Authorized Agent Title Date
I understand that I must pay tax owed plus interest and 100% penalty if I materially misrepresent information on this form.

Form S-3A
The completed certificate should be given to the seller who must Page 2 of 4
retain it for at least three years after any exempted sale. Rev. 07/16

- 3 -

                                    FORM S-3A Instructions    
             Vermont Sales Tax Exemption Certificate for

 Agricultural Fertilizers, Pesticides, Supplies, Machinery & Equipment

                                    General Information 
                     Please print in BLUE or BLACK ink only.
To learn how each exemption should be applied, please see the Department of Taxes fact sheet titled "Agricultural 
 Machinery, Equipment & Supplies:  Taxable or Tax Exempt?" available on the Department's website at 
 www.tax.vermont.gov.
Agricultural Machinery and Equipment
 This certificate is used to document exemption from Vermont Sales Tax for agricultural machinery and 
 equipment that is predominantly, meaning 75% or more, used in the production for sale of tangible personal 
 property on farms, orchards, nurseries, or in greenhouses or other similar structures used primarily for the 
 raising of agricultural or horticultural commodities for sale.
List of Potentially Exempt Agricultural Supplies
 Not all products used for agricultural purposes are exempt.  In addition, sometimes an exemption certificate 
 is necessary when purchasing supplies for agricultural use, sometimes it is not.  First, the item must be in 
 one of the following categories:
 •           Agricultural feeds
 •           Agricultural seed
 •           Agricultural plants
 •           Baler twine
 •           Silage bags
 •           Agricultural wrap
 •           Sheets of plastic for bunker covers
 •           Liming materials
 •           Breeding and other livestock
 •           Semen breeding fees
 •           Baby chicks
 •           Turkey poults
 •           Agricultural chemicals other than pesticides
 •           Veterinary supplies
 •           Farm animal bedding
 If an item does not fall into one of the listed categories, then it is subject to sales tax.  If the item is on the 
 above list, then there is a second test:  Is the item typically used in agriculture?  If the item is typically used 
 in agriculture, then the item is not subject to tax and anyone may purchase the item without an exemption 
 certificate.
 However, if the item is on the list above but not typically used in agriculture, then it is only exempt if an 
 exemption certificate is used which provides proof that the item will be used for an agricultural purpose.  
 Items are not typically used for agriculture when they are more commonly used for non-farming activities.  
 Examples include grass seed, flowering plants, and pet food.

                                                               Form S-3A Instructions
                                                                      Page 3 of 4
                                                                      Rev. 07/16

- 4 -

Good Faith
The buyer must present to the seller an accurate and properly executed exemption certificate for the
exempted sale. The responsibility is on the seller to determine if the buyer is submitting the exemption
certificate in "good faith." This requires the seller to be familiar with Vermont Sales and Use Tax law and
regulations, including exemptions, that apply to the seller's business. When the seller accepts the certificate
in good faith, the seller is not liable for collecting and remitting Vermont Sales Tax. An exemption
certificate is received at the time of sale in good faith when all of the following conditions are met:
• The certificate contains no statement or entry which the seller knows, or has reason to know, is
false or misleading.
• The certification is on an exemption form issued by the Vermont Department of Taxes or a
form with substantially identical language.
• The certificate is signed, dated, and complete (all applicable sections and fields completed).
• The property purchased is of a type ordinarily used for the stated purpose, or the exempt use is
explained.
Electricity, Oil, Gas, and Other Fuels
Electricity and fuel used directly and exclusively for farm purposes are not taxable. In most cases no
exemption certificate is required. Some suppliers may require that Form S-3F is completed if the use is
not obvious or if only a portion of the fuel purchased is exempt. Form S-3F can be found on our website at
www.tax.vermont.gov.
Farms
Farms include enterprises using land and improvements for agricultural production for sale. Agricultural
production includes crops such as fruits, vegetables, turf and sod crops, livestock, bees and apiary products,
Christmas trees, and maple syrup.
Use of One Certificate for Multiple Purchases
A buyer may use the same certificate for multiple purchases of the same agricultural supplies not typically
used in agriculture or the same fertilizers and pesticides. The buyer's use must also be the same.
A buyer may also use the same certificate for parts of the exempt machinery or equipment. However,
additional implements for the machinery will require a new certificate.
Every individual tax-exempt transaction must be linked to a specific exemption certificate. Therefore, for
instances where a certificate is used for multiple purchases, the seller must indicate on the sales slip which
exemption certificate is being used. A seller risks liability for sales tax for transactions that are not clearly
linked to a specific exemption certificate
The exemption certificate must be renewed every three years.
Obtaining the Certificate
The seller must obtain an exemption certificate from the buyer either prior to or at the time of the sale. If the
certificate is not available at the time of sale, the seller has 90 days after the sale to obtain a fully executed
certificate, accepted in good faith.
Retaining the Certificate
Sellers must retain exemption certificates and instructions for at least three years from the date of the last
sale covered by the certificate to document why tax was not collected from the buyer.

Form S-3A Instructions
Page 4 of 4
Rev. 07/16

PDF file checksum: 1986817845

(Plugin #1/9.12/13.0)