St 120 Form

What is the St 120?

The St 120 form, also known as the resale certificate in New York, is a crucial document used by businesses to claim exemption from sales tax when purchasing goods for resale. This form allows sellers to avoid charging sales tax on items that will be resold in the normal course of business. It is essential for maintaining compliance with New York State tax regulations and ensuring that businesses can operate efficiently without incurring unnecessary tax liabilities.

How to Use the St 120

To use the St 120 form effectively, businesses must complete it accurately and present it to suppliers when making purchases intended for resale. The form requires specific information, including the purchaser's name, address, and sales tax identification number. It is important to ensure that the details provided are correct to avoid complications with tax authorities. Once completed, the St 120 should be signed and dated by the purchaser, affirming the legitimacy of the resale claim.

Steps to Complete the St 120

Completing the St 120 form involves several straightforward steps:

• Begin by entering your business name and address in the designated fields.
• Provide your New York State sales tax identification number, which is essential for verification.
• Clearly describe the type of property being purchased for resale.
• Sign and date the form to validate the information provided.

After filling out the form, present it to your supplier to complete the transaction without incurring sales tax.

Legal Use of the St 120

The St 120 form is legally binding when completed correctly, as it serves as a declaration of intent to resell the purchased goods. To ensure its legal validity, the form must be filled out with accurate and truthful information. Misuse of the form, such as using it for items not intended for resale, can lead to penalties and legal repercussions. Businesses must understand the legal implications of using the St 120 to maintain compliance with state tax laws.

Key Elements of the St 120

Several key elements must be included in the St 120 form for it to be valid:

• Purchaser's Information: Name, address, and sales tax identification number.
• Description of Property: A clear description of the items being purchased for resale.
• Signature: The form must be signed and dated by an authorized representative of the purchasing business.

Ensuring these elements are present helps facilitate a smooth transaction and compliance with tax regulations.

Examples of Using the St 120

Businesses commonly use the St 120 form in various scenarios, such as:

• A retail store purchasing inventory from a wholesaler.
• An online seller acquiring products from a supplier for resale on their platform.
• A restaurant buying food and beverages intended for resale to customers.

In each case, the St 120 form allows these businesses to avoid paying sales tax on items they will sell to consumers, thus optimizing their operational costs.