How To Fill Out Streamlined Sales And Use Tax Agreement

If the sender receives a fully completed exemption certificate from the seller, the sender of the drop is not responsible for VAT on products provided by the dump sender to the seller`s customer in an optimized Member State. Sellers registered by the VAT Optimized Registration System (SSTRS) are required to collect and transfer VAT to each state where they are registered if the product sold is purchased in that state. If the seller`s customer provides a certificate of exemption to the seller, the seller should not collect sales or VAT on that transaction. Certified Service Providers (CSPs), sellers who use certified Automated Systems (CASs) and sellers who use the Online Treasury Form can forward ESS-SER to the Treasury. Sellers and suppliers should check with each country where they have sales to find out if they should register and collect and transfer VAT, or review the rules for remote sellers and marketplace sellers. A full Member State is a State established by the Optimised VAT Act, which has amended its VAT legislation to meet all SSUTA requirements. Member states include Arkansas, Georgia, Indiana, Iowa, Kansas, Kentucky, Michigan, Minnesota, Nebraska, Nevada, New Jersey, North Carolina, Ohio, Oklahoma, Rhode Island, South Dakota, Vermont, Washington, West Virginia, Wisconsin and Wyoming. Sellers who register via the optimized registration system are registered in each streamlined status they have chosen and must collect and transfer VAT in each of these countries. Article VIII, SSUTA The project has contributed to improved administrative procedures, the implementation of uniform definitions within the framework of tax legislation and the provision of technological tax collection systems corresponding to current technology.

The SSTP agreement focuses on improving revenue and the use of tax administration for both local businesses and remote sellers for all types of business. Under SSUTA, qualified buyers can apply for VAT exemption in Minnesota or other Member States by completing an exemption certificate: to learn more about the SSTP agreement, visit the Streamlined Sales Tax Project website under A Drop Shipper is required to collect and transfer VAT, unless exempted.