Knowledge Base

Claiming Tax Exemptions



Submitting Tax-Exempt Documentation

You may fax your tax exemption certificate to our Tax Department at 1-800-433-9023

Notes:

  • Include your customer number and email address on your fax coversheet.
  • Once validated, the exemption will be tied to that customer number.


Required Sales Tax Forms


Generally, Dell requires a copy of the "Bill To" customer's State Sales Tax Exemption certificate or Resale Certificate for the "Ship To" state.
Some states provide blank forms that must be presented to a vendor, while others have state-issued letters or certificates.

Note: It will depend on the type of exemption being claimed and the state in question what form is needed, or whether a certificate is required at all.

Please check the respective state's website for sales tax forms:

http://www.taxadmin.org/fta/link/forms.html

Notes:

  • Please note that business permits, business licenses, certificates of authority, sales tax returns, sales tax numbers, or IRS income-tax exemption letters are not state sales tax exemption certificates.
  • Sales/use tax is regularly a destination charge, determined by the ship-to state. (Exceptions do apply.)
  • Thus, exemptions to the tax are based on the ship-to address/state.
  • There may be additional requirements, depending on the exemption/state in question that the purchaser should take into consideration.


Claiming Tax Exemptions


Not all points mentioned below may apply to your state's certificate, nor is the list all-inclusive. Please make sure to complete all entries on the form, which helps to ensure that your exemption is claimed.



  1. Reference your customer number and e-mail address on your coversheet.

  2. Seller Information: Dell Marketing L.P.

  3. Describe PROPERTY PURCHASED as COMPUTER EQUIPMENT AND/OR SOFTWARE.

  4. Indicate the PURCHASER'S NAME as your COMPANY/ORGANIZATION'S NAME.
    (The bill-to name on your order/invoice must be the same name of the purchaser on the exemption documentation. When applicable, indicate you have a "doing business as" company name.)

  5. Sign and date the form.


Keep in mind the following information if you are filling out the form for these types of exemptions:

Resale: Include RESELL OF COMPUTER EQUIPMENT AND/OR SOFTWARE or INTEGRATE COMPUTER EQUIPMENT AND/OR SOFTWARE as part of your nature of business.



Notes:

  • Drop-shipments: Some states only exempt a reseller if they register in their state and/or provide specific documentation to the vendor; otherwise, the resale exemption is considered invalid.

  • There should be a correlation between the items purchased from Dell and the nature of business of the purchaser as stated on the certificate.

  • Resellers must fill out a resale certificate. Each state has a state form or a multi-state certificate to complete.

Exempt Organizations:


Non-profits are not necessarily exempt from state sales tax, although they may be exempt from federal income tax. States have specific requirements on what documentation is needed when claiming such an exemption.

Notes:

  • Include supporting documentation regarding your exemption from state sales tax, such as state issued letters.

  • Simply providing a copy of your sales tax permit, certificate of authority, sales tax return, sales tax number, or IRS exemption letter is not sufficient documentation of exemption.

Manufacturing:


Indicate how the computer equipment is used in your manufacturing process.


Note: Some states exempt from tax, or tax at a reduced rate, equipment used in certain manufacturing processes. In many instances, the machinery must be used directly in manufacturing. States have specific forms for this type of exemption. A multi-jurisdiction form is not valid documentation for this type of exemption.

Diplomats and Missions:


Exemptions are allowed, according to the U.S. Department of State, to certain foreign government personnel and offices under the authority of the Foreign Missions Act (22 USC 4301 et seq.)

  1. Please fax a copy of the card, front and back, to the number listed above.

  2. Additional information may be obtained on the website.


Notes:

  • Some cards have restrictions on tax-free purchases and are not transferable. Only the person whose photograph appears on the front side of the card may use it.

  • Mission tax exemption cards are issued to embassies, consulates, and international organizations for official purchases only and for the sole benefit of the mission identified on the face of the card. All purchases must be made in the name of the mission and paid for by mission check or credit card (not cash or personal check).






State Sales Tax Holidays in 2014


If your purchases qualify for a state sales tax holiday, your invoice will not reflect tax.
Note: Please note that in most states, a sales tax holiday for computer equipment only applies to consumer purchases, in which case a purchase by a business does not qualify for this tax exemption.

Please refer to the state websites provided (Table 1) for important additional details, including the following information:

  • Lists of qualifying (exempt) and non-qualifying (taxable) equipment;
  • Stipulations on determining the dollar limit;
  • Time Zone Considerations;
  • FAQs.


As individual states finalize their guidelines, the following table will be updated.

State Dates
(See Notes below)
Tax Free Limit Shipping and Handling
Part of Limit?
Taxed if Threshold Exceeded? Time Zone Applied
Florida Aug 1 - 3, 2014 Up to $750 of sales price. No No EST
Georgia Aug 1 - 2, 2014 Up to $1,000 No Yes EST
Louisiana
(Applies to 4% state tax)
Aug 1 - 2, 2014 Up to $2,500 No No CST
Massachusetts
Waiting for State to provide information.
N/A N/A N/A N/A N/A
New Mexico Aug 1 - 3, 2014 Up to $1,000 - (Computers)
Up to $500 - (Listed Peripherals)
No Yes EST
North Carolina
Repealed 2014
N/A N/A N/A N/A N/A
South Carolina
Waiting for State to provide information.
N/A N/A N/A N/A N/A
Tennessee Aug 1 - 3, 2014 Up to $1,500 per item Yes Yes CST

Table 1: 2014 State Sales Tax Holidays

Notes:


  • Dates starts at 12:01 a.m. on the first day and ends at 11:59 p.m. on the last.
  • The Missouri Sales Tax Holiday Provision is related to state SALES tax. Dell is registered to collect the vendors use tax and, therefore, cannot participate in the Missouri Sales Tax holiday.
  • The Alabama sales tax holiday provision requires items to be paid for and delivered during the holiday period. Since covered items ordered during the holiday will not be delivered until after the holiday, Dell's transactions do not qualify for the exemption.
  • States in which Sales Tax Holiday is geared towards clothing and footwear, not computer equipment:
    AR, CT, IA, MD, MS, NY, OK, TX, and VA.
  • ENERGY-STAR holiday that does not include computer equipment:
    MD, MO, NC, TX, and VA.






How Do I Get the State Tax Refund that was Charged when I Ordered Online?


Dell's tax department will make every effort to remove tax before the order is shipped.
However, if the order is shipped before the tax was removed; the tax department will process a credit back to the original form of payment within 3-4 weeks.






Article ID: SLN117638

Last Date Modified: 02/04/2015 08:02 AM


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