![]() Enlarge image | Vermont Sales Tax Exemption Certificate for Form CONTRACTORS COMPLETING A QUALIFIED EXEMPT PROJECT S-3C (listed below) 32 V.S.A. § 9743(1)-(4), § 9741(39) Complete one exemption certificate for EACH project To be filed with the SELLER, not with the VT Department of Taxes. c Single Purchase - Enter Purchase Price $ _________________ c Multiple Purchase (effective for subsequent purchases.) Name Federal ID Number Business Name For Individuals/Partnerships Social Security Number Address Telephone Number CONTRACTOR Post Form & Instructions together City State ZIP Code (Place at FIRST page) Seller's Name 1 - 2 Address SELLER City State ZIP Code Organization's Name Address City State ZIP Code Exempt as: c 501(c)(3) Registered in Vermont. Vermont Sales and Use Tax Account Number _________________________ c United States of America - Agency ____________________________________________________________ c State of Vermont or Subdivision - Name ________________________________________________________ c Local Development Corporation covered by 10 V.S.A., Chapter 12 c Qualifying Manufacturing Facility 32 V.S.A. § 9741(39) EXEMPT ORGANIZATION Project Starting Date Approximate Completion Date I certify that I have read and complied with the instructions provided with respect to the use of this Exemption Certificate. I further certify that the above statements are true, complete, and correct, and that no material information has been omitted. Signature of Buyer or Authorized Agent Title Date Form S-3C This form may be photocopied. Rev.11/19 |
![]() Enlarge image | Instructions for Use of the Certificate of Exemption for Contractors (Form S-3C) (For use only in completion of qualified projects for exempt organizations) All tangible personal property purchased by a the Vermont Sales and Use Tax otherwise due on tangible Page 2 contractor is taxable as the contractor is considered personal property covered by the certificate. Good faith to be the end-user with the finished product normally depends upon a consideration of all the conditions being real property, which is not subject to Vermont surrounding the transaction. To receive an exemption in Sales and Use Tax. However, there are certain exemptions good faith, a seller is presumed to be familiar with the law allowed for contractors purchasing materials: and the regulations pertinent to the business in which the • When the contractor is working with a qualifying seller deals. In order for good faith to be established, all of exempt organization the following conditions must be met: • When the contractor is working on a specific a. The buyer must present the certificate prior to or qualifying exempt project at the time of the purchase of the property. Tangible personal property exempted from tax must be b. The certificate must contain no statement or entry incorporated into the real estate, or the supplies must which the seller knows, or has reason to know, is be used or consumed on the job. If the contractor buys false or misleading. materials or supplies exempt from tax but uses them later in c. The certificate is on an exemption form issued by a taxable project, the contractor must pay use tax on those the Vermont Department of Taxes or a form with materials and supplies. Purchases of equipment and tools substantially identical language. Post Form & Instructions together used by the contractor are subject to tax. d. The certificate must be dated and complete and in (Place at LAST page) accordance with published instructions. Qualifying Organizations & Projects e. The Vermont Sales and Use Tax account number is A qualifying organization contracts to construct, provided on the certificate where applicable reconstruct, alter, remodel, or repair any building structure f. The property to be purchased is of a type ordinarily or public works project owned by the Federal government, used by the buyer for the purpose described on the 1 - 2 State of Vermont (and its agencies and subdivisions), or a certificate. 501(c)(3) as designated by the Internal Revenue Service and registered with the Vermont Department of Taxes. Improper Certificate/Lack of Certificate Please note that many nonprofit organizations, such as Sales of tangible personal property subject to tax which are civic, social, and fraternal organizations, are not 501(c)(3)s not supported by properly executed exemption certificates and not all 501(c)(3)s projects qualify for exemption. To are taxable retail sales. The burden of proof that the tax qualify, the project must be used exclusively for public was not required to be collected is upon the seller. purposes, and the project contract must be granted by an Retention of Certificates by the Seller exempt organization. Turnkey projects are not exempt, Sellers must retain exemption certificates for at least three even if the ultimate owner may be an exempt organization. years from the date of the last sale covered by the certificate Qualifying Manufacturing Facility to document why tax was not collected from the buyer. Under 32 V.S.A. § 9741(39), Sales of building materials Multiple Purchase Exemption Certificates within any three consecutive years in excess of If the buyer presents a “Multiple Purchase” exemption $1,000,000.00 in purchase value used in the construction, certificate to the seller, it may be used only when purchasing renovation, or expansion of facilities which are used tangible personal property for use on the qualified exempt exclusively, except for isolated or occasional uses, for the project as noted on this exemption certificate. For each manufacture of tangible personal property for sale. purchase covered by the exemption certificate, the sales Acceptance in “Good Faith” slip or invoice must show the buyer’s name and address A seller who accepts an exemption certificate in “good sufficient to link the purchase to the exemption certificate faith” is relieved of liability for collection or payment of on file. Other types of exemption certificates that may be applicable are available on our website at: www.tax.vermont.gov. For questions regarding how these exemption certificates may be properly applied, please contact the Vermont Department of Taxes at (802) 828-2551. Form S-3C Instructions Page 1 of 1 Rev. 11/19 |