2018-2025 Form

What is the Nys Resale Certificate Form St 120

The Nys Resale Certificate Form ST-120 is an essential document for businesses in New York that allows purchasers to buy goods without paying sales tax. This form is primarily used by resellers who intend to sell the goods in the regular course of business. By presenting this certificate to suppliers, businesses can avoid the upfront sales tax, which can be significant. The form serves as proof that the buyer is purchasing items for resale, not for personal use, thereby ensuring compliance with state tax regulations.

How to use the Nys Resale Certificate Form St 120

Using the Nys Resale Certificate Form ST-120 involves a straightforward process. First, the buyer must fill out the form accurately, providing necessary information such as the buyer's name, address, and the seller's details. It is crucial to include the seller's sales tax identification number. Once completed, the form should be presented to the seller at the time of purchase. The seller retains the form for their records, which helps to validate the tax-exempt sale during audits.

Steps to complete the Nys Resale Certificate Form St 120

Completing the Nys Resale Certificate Form ST-120 requires attention to detail. Follow these steps:

• Obtain the form from the New York State Department of Taxation and Finance website or through your supplier.
• Fill in your business name and address in the designated fields.
• Provide the seller's name and address, along with their sales tax identification number.
• Describe the type of property being purchased and indicate that it is for resale.
• Sign and date the form to certify that the information is accurate.

Legal use of the Nys Resale Certificate Form St 120

The Nys Resale Certificate Form ST-120 is legally binding when filled out correctly. It provides a legal basis for the buyer to purchase goods without paying sales tax, as long as the items are intended for resale. Misuse of the form, such as using it for personal purchases, can lead to penalties and fines. Both buyers and sellers must ensure compliance with New York tax laws to avoid potential legal issues.

Key elements of the Nys Resale Certificate Form St 120

Several key elements must be included in the Nys Resale Certificate Form ST-120 to ensure its validity:

• Purchaser Information: Name and address of the buyer.
• Seller Information: Name and address of the seller, including their sales tax identification number.
• Description of Property: A clear description of the items being purchased for resale.
• Signature: The buyer's signature and date to validate the form.

Examples of using the Nys Resale Certificate Form St 120

Examples of using the Nys Resale Certificate Form ST-120 can vary across different industries. For instance, a retail store purchasing inventory from a wholesaler would present the form to avoid paying sales tax on the goods. Similarly, a contractor buying materials for a project intended for resale would use the form to ensure tax exemption. Each scenario reinforces the importance of accurate documentation and compliance with state regulations.