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In navigating the complexities of Nebraska's sales tax, the Nebraska Sales Tax form stands out as a crucial document designed for the purposes of claiming exemptions. This form, specifically Form 13, is meticulously structured to cater to various exemptions, including purchases for resale, exempt purchases, and particular provisions for contractors. Individuals or entities engaged in purchasing goods or services for resale can utilize Section A of the form to declare their intent, thereby exempting these purchases from Nebraska sales tax provided they are operating within the delineated parameters as a wholesalanufacturer, or lessor, among others. For purchases that fall under exempt categories, Section B offers a pathway to elucidate the basis of such exemptions, spanning a range of categories laid out in the instructions. Moreover, contractors find a tailored section, Section C, designed to simplify the exemption process for purchases related to building materials or fixtures, highlighting the form's versatility in addressing distinct needs. This form not only mandates detailed information about the purchases and the purchasers but also embeds stringent penalties for misuse, emphasizing the gravity of accuracy and honesty in its completion. By offering a comprehensive framework for exemption claims, the Nebraska Sales Tax form plays a pivotal role in the state's tax administration, ensuring both compliance and facilitation for eligible sales tax exemptions.

Example - Nebraska Sales Tax Form

Nebraska Resale or Exempt Sale Certificate

for Sales Tax Exemption

•฀ Read฀instructions฀on฀reverse฀side/see฀note฀below

FORM

13

NAME AND MAILING ADDRESS OF PURCHASER

NAME AND MAILING ADDRESS OF SELLER

 

 

Name

Name

Street or Other Mailing Address

Street or Other Mailing Address

City

State

Zip Code

City

State

Zip Code

Check Type of Certificate

Single Purchase

Blanket If blanket is checked, this certiicate is valid until revoked in writing by the purchaser.

I hereby certify that the purchase, lease, or rental by the above purchaser is exempt from the Nebraska sales tax for the following reason:

Check One

Purchase for Resale (Complete Section A)

Exempt Purchase (Complete Section B)

Contractor (Complete Section C)

SECTION A — Nebraska Resale Certificate

Description of Item or Service Purchased

I hereby certify that the purchase, lease, or rental of

from the above seller is exempt from the Nebraska sales tax as a purchase for resale, rental, or lease in the normal course of our business, either in the form or condition in which purchased, or as an ingredient or component part of other property to be resold.

I further certify that we are engaged in business as a:

of Description of Product Sold, Leased, or Rented

Wholesaler

Retailer

Manufacturer

Lessor

 

If None, State Reason

and hold Nebraska Sales Tax Permit Number 01-

 

or Foreign State Sales Tax Number

State

 

SECTION B — Nebraska Exempt Sale Certificate

 

 

The basis for this exemption is exemption category

(Insert appropriate category as described on reverse of this form.)

If exemption category 2 or 5 is claimed, enter the following information:

Description of Item(s) Purchased

Intended Use of Item(s) Purchased

If exemption categories 3 or 4 are claimed, enter the Nebraska Exemption Certiicate number. 05 -

If exemption category 6 is claimed, seller must enter the following information and sign this form below:

Description of Item(s) Sold

Date of Seller’s Original Purchase

Was Tax Paid when Purchased by Seller?

Was Item Depreciable?

YES

NO

YES

NO

SECTION C — For Contractors Only

1.฀purchases฀of฀building฀materials฀or฀fixtures:

As an Option 1 or Option 3 contractor, I hereby certify that purchases of building materials and ixtures from the above seller are exempt from

Nebraska sales tax. My Nebraska Sales or Consumer’s Use Tax Permit Number is:

01-

2.฀purchases฀made฀under฀purchasing฀agent฀appointment฀on฀behalf฀of฀_________________________________________________:

(exempt entity)

Pursuant to an attached Purchasing Agent Appointment and Delegation of Authority for Sales and Use Tax, Form 17, I hereby certify that purchases of building materials, and ixtures are exempt from Nebraska sales tax.

Any purchaser, or their agent, or other person who completes this certificate for any purchase which is other than for resale, lease, or rental in the regular course of the purchaser’s business, or is not otherwise exempted from the sales and use tax under Neb. Rev. Stat. §§77-2701 through 77-27,135, shall in addition to any tax, interest, or penalty otherwise imposed, be subject to a penalty of $100 or ten times the tax, whichever amount is larger, for each instance of presentation and misuse. With regard to a blanket certificate, this penalty shall apply to each purchase made during the period the blanket certificate is in effect. Under penalties of law, I declare that I am authorized to sign this certificate, and to the best of my knowledge and belief, it is correct and complete.

sign

here

 

 

 

 

 

Authorized Signature

 

Title

 

Date

NOTE: Sellers฀must฀keep฀this฀certiicate฀as฀part฀of฀their฀records.฀ Do฀not฀SenD฀to฀the฀nebRaSka฀DepaRtment฀of฀Revenue.

Incomplete฀certiicates฀cannot฀be฀accepted.

www.revenue.ne.gov,฀(800)฀742-7474฀(toll฀free฀in฀ne฀and฀Ia),฀(402)฀471-5729

6-134-1970 Rev. 3-2009 Supersedes 6-134-1970 Rev. 10-2007

INSTRUCTIONS

Who฀ maY฀ ISSue฀ a฀ ReSaLe฀ CeRtIfICate.฀ Form 13,

(3) a statement of basis for exemption including completion of all

Section A, is to be issued by persons or organizations making

information for the basis chosen, (4) the signature of an authorized

purchases of property or taxable services in the normal course of

person, and (5) the date the certiicate was issued.

their business for the purpose of resale either in the form or condition

penaLtIeS.฀Any purchaser who gives a Form 13 to a seller for

in which it was purchased, or as an ingredient or component part of

any purchase which is other than for resale, lease, or rental in the

other property.

normal course of the purchaser’s business, or is not otherwise

Who฀ maY฀ ISSue฀ an฀ eXempt฀ SaLe฀ CeRtIfICate.

exempted from sales and use tax under the Nebraska Revenue Act,

Form 13, Section B can only be issued by persons or organizations

shall be subject to a penalty of $100 or ten times the tax, whichever

exempt from payment of the Nebraska sales tax by qualifying for

amount is larger, for each instance of presentation and misuse.

one of the six enumerated Categories of Exemption (see below).

Any purchaser, or their agent, who fraudulently signs a Form 13

Nonprofit organizations that have a 501(c) designation and are

may be found guilty of a Class IV misdemeanor.

exempt from federal and state income tax are not automatically

 

CATEGORIES OF EXEMPTION

exempt from sales tax. Only the entities listed in the referenced

 

1. Purchases made directly by certain governmental agencies

regulations are exempt from paying Nebraska sales tax on their

purchases when the exemption certiicate is properly completed and

identiied in Nebraska Sales and Use Tax Reg-1-012, Exemptions;

provided to the seller. Organizations claiming a sales tax exemption

Reg-1-072, United States Government and Federal Corporations;

may do so only on items purchased for their own use. For health care

and Reg-1-093, Governmental Units, are exempt from sales tax.

organizations, the exemption is limited to the speciic level of health

A list of speciic governmental units are provided in the above

care they are licensed for. The exemption is not issued to the entire

regulations. Governmental units are not assigned exemption

organization when multiple levels of health care or other activities are

numbers.

 

provided or owned by the organization. Items purchased by an exempt

Sales to the United States government, its agencies, and

organization that will be resold must be supported by a properly

corporations wholly owned by the United States government are

completed Nebraska Resale Certiicate, Form 13, Section A.

exempt from sales tax. However, sales to institutions chartered

Indicate the category which properly relects the basis for your

or created under federal authority, but which are not directly

exemption. Place the corresponding number in the space provided

operated and controlled by the United States government for the

in Section B. If category 2 through 6 is the basis for exemption, you

beneit of the public, generally are taxable. Construction projects

must complete the information requested in Section B.

for federal agencies have speciic requirements, see Reg-1-017

Nebraska Sales and Use Tax Reg-1-013, Sale for Resale – Resale

Contractors.

Purchases that are not exempt from Nebraska sales and use tax

Certificate, and Reg-1-014, Exempt Sale Certificate, provide

include, but are not limited to, governmental units of other states,

additional information on the proper issuance and use of this

sanitary and improvement districts, urban renewal authorities,

certificate. These and other regulations referred to in these

rural water districts, railroad transportation safety districts, and

instructions are available on our Web site: www.revenue.ne.gov/

county historical or agricultural societies.

legal/regs/slstaxregs.

2. Purchases when the intended use renders it exempt as set out

Use Form 13E for purchases of energy sources which qualify for

in paragraph 012.02D of Reg-1-012, Exemptions. Complete

exemption. Use Form 13ME for purchases of mobility enhancing

the description of the item purchased and the intended use as

equipment on a motor vehicle.

required on the front of Form 13. Sellers of repair parts for

ContRaCtoRS.฀Form 13, Section C, Part 1, must be completed

agricultural machinery and equipment cannot accept a Form 13

by contractors operating under Option 1 or Option 3 to document

to exempt such sales from tax.

their tax-free purchase of building materials or ixtures from their

3. Purchases made by organizations that have been issued a

suppliers. Section C, Part 2, may be completed to exempt the

Nebraska

Exempt Organization - Certiicate of Exemption are

purchase of building materials or ixtures pursuant to a Purchasing

exempt from sales tax. Reg-1-090, Nonproit Organizations;

Agent Appointment, Form 17. See the contractor information guides

Reg-1-091, Religious Organizations; and Reg-1-092, Educational

on our Web site www.revenue.ne.gov for additional information.

Institutions, identify such organizations. These organizations will

 

WheRe฀to฀ fILe.฀ Form 13 is given to the seller at the time of

be issued a Nebraska state exemption identiication number. This

the purchase of the property or service or when sales tax is due.

exemption number must be entered in Section B of the Form 13.

The certiicate must be retained with the seller’s records for audit

4. Purchases of common or contract carrier vehicles and repair and

purposes. Do not send to the Department of Revenue.

replacement parts for such vehicles.

SALES TAX NUMBER. A purchaser who completes Section A

5. Purchases

of manufacturing machinery or equipment by

and is engaged in business as a wholesaler or manufacturer is

a taxpayer engaged in business as a manufacturer for use

not required to provide an identification number. Out-of-state

predominantly in manufacturing. This includes the installation,

purchasers can provide their home state sales tax number. Section B

repair, or maintenance of such qualiied manufacturing machinery

does not require an identification number when exemption

or equipment (see Revenue Ruling 01-11-1).

category 1, 2, or 5 is indicated.

6. A sale that qualiies as an occasional sale, such as a sale of

pRopeRLY฀ CompLeteD฀ CeRtIfICate.฀ A purchaser

depreciable machinery and equipment productively used by the

must complete a certificate before issuing it to the seller. To

seller for more than one year and the seller previously paid tax on

properly complete the certificate, the purchaser must include:

the item. The seller must sign and give the exemption certiicate

(1) identiication of the purchaser and seller, (2) a statement whether

to the purchaser. The certiicate must be retained by the purchaser

the certiicate is for a single purchase or is a blanket certiicate,

for audit purposes (see Reg-1-014, Exempt Sale Certiicate).
Click for PDF Form

Document Breakdown

Fact Number Fact Description
1 The form serves as a certificate for sales tax exemption in Nebraska under specific conditions.
2 It includes different sections (A, B, C) for various exemptions such as resale, exempt purchases, and contractor purchases.
3 Section A is specific for purchases intended for resale, rental, or lease as a part of the purchaser's business operations.
4 Section B caters to exempt purchases, requiring details depending on the exemption category selected.
5 Contractors use Section C for building materials or fixtures purchases that are exempt from sales tax.
6 The form must be completely filled and retained by the seller for records, but not sent to the Nebraska Department of Revenue.
7 Misuse or fraudulent use of the form may result in penalties, including a $100 fine or ten times the tax amount per incident.
8 It is governed by the Nebraska Revenue Act, specifically Neb. Rev. Stat. §§77-2701 through 77-27,135 and associated sales and use tax regulations.

Steps to Writing Nebraska Sales Tax

Filling out the Nebraska Sales Tax form, specifically the Form 13, is an essential process for entities making tax-exempt purchases within Nebraska. This includes purchases for resale, those made by exempt organizations, and items bought by contractors for use in construction that meet specific tax exemption criteria. Proper completion and submission of this form ensure compliance with Nebraska's sales tax regulations, thereby avoiding potential penalties. Here, you'll find a step-by-step guide to accurately fill out the form, whether it's for a single purchase or as a blanket certificate for ongoing transactions.

  1. Begin by reading the instructions found on the reverse side of Form 13 to familiarize yourself with the requirements and categories of exemptions.
  2. In the section labeled 'NAME AND MAILING ADDRESS OF PURCHASER,' enter the purchaser's full name and address including street name or other mailing address, city, state, and zip code.
  3. Complete the 'NAME AND MAILING ADDRESS OF SELLER' with the seller's information, following the same format as step 2.
  4. Choose the type of certificate by checking either 'Single Purchase' or 'Blanket.' If 'Blanket' is checked, remember the certificate remains valid until the purchaser revokes it in writing.
  5. Identify the reason for exemption by checking the appropriate box: 'Purchase for Resale' (then complete Section A), 'Exempt Purchase' (complete Section B), or 'Contractor' (complete Section C).
  6. For purchases for resale (Section A):
    • Describe the item or service purchased.
    • Specify your business type (wholesaler, retailer, manufacturer, lessor) and include your Nebraska Sales Tax Permit Number or Foreign State Sales Tax Number.
  7. If making an exempt purchase (Section B):
    • Select the exemption category by inserting the appropriate number.
    • For categories 2 or 5, provide a description of the items purchased and their intended use.
    • For categories 3 or 4, enter the Nebraska Exemption Certificate number.
    • If claiming exemption category 6, the seller must complete the section including a description of the items sold and whether tax was paid on the original purchase.
  8. For contractor purchases only (Section C):
    • Confirm your status as an Option 1 or Option 3 contractor and provide your Nebraska Sales or Consumer's Use Tax Permit Number for purchases of building materials or fixtures.
    • If purchasing under a purchasing agent appointment on behalf of an exempt entity, complete the necessary fields including attaching Form 17.
  9. Under penalties of law, the form must be signed by an individual authorized to do so. Fill in the authorized signature, title, and date.
  10. Ensure all the information is accurate and complete to avoid the rejection of the certificate.
  11. Retain a copy for your records. Remember, the completed Form 13 should be retained and not sent to the Nebraska Department of Revenue.

Following these steps will guide you through the completion of the Nebraska Sales Tax Form 13. This procedure facilitates tax-exempt purchases in compliance with Nebraska tax laws, contributing to the smooth operation of businesses and organizations eligible for tax exemptions. Properly filled-out forms serve as critical documentation for both buyers and sellers, defending their tax-exempt transactions during audits. It's important to periodically review the form for accuracy and to ensure compliance with any changes in tax law.

FAQ

What is a Nebraska Sales Tax Exemption Certificate and who can issue it?

A Nebraska Sales Tax Exemption Certificate, also referred to as Form 13, allows entities to make tax-exempt purchases of goods and services that are either intended for resale, qualify under specific exempt categories, or are purchased by certain contractors for use in construction. It can be issued by any business or organization making purchases in the normal course of their operations for purposes of resale, lease, or rental as well as by organizations that qualify for exemption under six specific categories due to the nature of their operations or status.

How do I know if I qualify for a sales tax exemption, and what are the categories of exemption?

Qualification for a sales tax exemption depends on the nature of your business operation or organizational status. The categories include:

  1. Purchases by certain governmental agencies and units,
  2. Items purchased for purposes rendering them exempt,
  3. Exemptions granted to organizations with a specific Nebraska Exempt Organization Certiicate of Exemption,
  4. Purchases of common or contract carrier vehicles and related parts,
  5. Manufacturing machinery and equipment intended predominantly for manufacturing use, and
  6. Occasional sales, including certain depreciable machinery and equipment.

To determine your eligibility, you should review the specific requirements and regulations for each category provided by the Nebraska Department of Revenue.

What information must be included on a properly completed Nebraska Sales Tax Exemption Certificate?

For the certificate to be considered complete, it must include:

  • The name and address of the purchaser and seller,
  • Indication of whether the certificate is for a single purchase or is a blanket certificate valid for ongoing purchases,
  • A detailed description of the exempt reason, including specific category and required additional information based on the category,
  • The signature of an authorized individual from the purchasing entity, and
  • The date on which the certificate was issued.

Can out-of-state purchasers use the Nebraska Sales Tax Exemption Certificate?

Yes, out-of-state purchasers can use the Nebraska Sales Tax Exemption Certificate, Form 13, particularly when making purchases for resale or for other qualified exempt reasons. While they may not have a Nebraska sales tax permit number, they can provide their home state sales tax number when completing Section A for wholesaler or manufacturer exemptions.

What happens if I misuse the Nebraska Sales Tax Exemption Certificate?

Misusing the exemption certificate for purchases not qualifying under the stated exemptions results in penalties. Such misuse includes, but is not limited to, claiming exemptions for personal purchases not intended for resale or not covered under the six exempt categories. The penalties involve a fine of $100 or ten times the amount of tax due, whichever is larger, for each instance of misuse. Fraudulent misuse of the certificate could additionally lead to a Class IV misdemeanor charge.

How long is a blanket Nebraska Sales Tax Exemption Certificate valid, and how can it be revoked?

A blanket exemption certificate does not have a predefined expiration date and remains valid until it is expressly revoked by the purchaser in writing. This allows for ongoing purchases without the need to issue a new certificate for each transaction. To revoke a certificate, the purchaser must send a written notice to the seller stating their intention to revoke the exemption for future transactions.

Common mistakes

Filling out the Nebraska Sales Tax form, specifically the Nebraska Resale or Exempt Sale Certificate, requires attention to detail and a clear understanding of the qualifications for sales tax exemptions. However, individuals often make errors that can compromise the validity of their certificates, resulting in penalties or the denial of tax exemption claims. Here are nine common mistakes:

  1. Not checking the appropriate type of certificate: Failing to indicate whether the certificate is for a single purchase or a blanket certificate can lead to confusion and could invalidate the exemption if audited.
  2. Incorrectly classifying the nature of the purchase: Misidentifying the purchase as for resale, an exempt purchase, or a contractor purchase might lead to incorrect processing of sales tax exemptions.
  3. Leaving the description of items or services purchased blank: Not providing a clear description of the items or services purchased for resale or exempt use can cause the certificate to be considered incomplete.
  4. Incomplete business classification: Not specifying or incorrectly specifying the business classification (e.g., wholesaler, retailer, manufacturer, lessor) might lead to a rejection of the certificate due to lack of clarity regarding the exemption qualification.
  5. Omission of sales tax permit number: Neglecting to include the Nebraska Sales Tax Permit Number or, for out-of-state businesses, their home state sales tax number, could result in the certificate being rejected.
  6. Failing to identify the exemption category properly: For exempt purchases, it's crucial to correctly identify and provide supporting information for the exemption category, such as including the Nebraska Exemption Certificate number if required.
  7. Inaccurate or incomplete contractor section: Contractors must ensure they complete the correct option and provide their Nebraska Sales or Consumer’s Use Tax Permit Number. Inaccurate or missing information can affect their exemption eligibility.
  8. Failure to sign the certificate: An unsigned certificate can be a significant oversight, as it indicates that an authorized representative has reviewed and attested to the accuracy of the information provided.
  9. Improper use of the certificate: Using the certificate for purchases that do not qualify for sales tax exemption can lead to penalties. It's important to only use the certificate for its intended exempt purposes.

    10. In summary, users of the Nebraska Resale or Exempt Sale Certificate for Sales Tax Exemption must exercise diligence and precision in completing the form. Each section of the form serves a specific legal purpose, integral to the validation of a claim for sales tax exemption. Avoiding these common mistakes not only ensures compliance with Nebraska tax laws but also safeguards against potential financial penalties.

Documents used along the form

When handling the complexities of Nebraska sales tax, businesses and tax professionals must navigate a variety of documents that support or correspond to the Nebraska Resale or Exempt Sale Certificate (Form 13). Understanding these forms can aid in compliance and streamline tax processing. Below is a list of documents frequently used alongside Form 13, each critical for different scenarios in tax documentation and reporting.

  • Form 10: The Nebraska Sales and Use Tax Return is the primary document for reporting and remitting collected sales tax from customers. It is crucial for businesses to reconcile their sales tax collected and ensure timely submissions to avoid penalties.
  • Form 17: Purchasing Agent Appointment and Delegation of Authority for Sales and Use Tax allows contractors to buy materials and fixtures tax-free on behalf of an exempt entity. This form is particularly relevant when completing the contractor section of Form 13.
  • Form 9: The Nebraska Use Tax Return is essential for reporting tax on items purchased without paying sales tax, such as those bought from out-of-state vendors. This includes online and catalog purchases used in the business.
  • Form 20: Application for Nebraska Sales Tax Permit is required for businesses to legally collect sales tax in Nebraska. This permit is necessary before engaging in sales activities that are subject to sales tax within the state.
  • Form 22: Nebraska Change Request for Tax Permit allows current permit holders to update information related to their sales tax account, such as business address changes or closing the business account.
  • Form 13E: This specialized form is for claiming exemption on purchases of energy sources, as mentioned in the instructions for Form 13. It is used when the purpose of the energy purchase falls under certain tax-exempt qualifications.
  • Form 13ME: Used for claiming tax exemptions on purchases of mobility enhancing equipment on a motor vehicle, highlighting the specific use cases for tax exemptions on modifications for accessibility.
  • Form 27: The Nebraska Refund Claim for Sales and Use Tax is vital for businesses or individuals looking to receive a refund from overpaid sales and use taxes. Situations warranting this form can range from tax-exempt purchases made without exemption certificates to calculation errors.

Similar forms

  • The Nebraska Sales Tax form, specifically concerning its function for resale or exempt sales certificates, bears resemblance to the Uniform Sales & Use Tax Exemption/Resale Certificate multi-jurisdictional form. Both documents are designed to facilitate tax-exempt transactions for qualifying purchases, such as for resale or specific exempt purposes. The key similarities lie in their requirements for the purchaser to provide detailed information about the nature of the exemption being claimed and to assert that the purchase qualifies under applicable tax exemption rules. These forms typically require the purchaser's name, address, and tax identification number, along with a declaration of the intended use of the goods purchased. What distinguishes them is their scope; whereas the Nebraska form is state-specific, the Uniform Certificate can be used in multiple states that accept it, streamlining the process for businesses operating in various jurisdictions.

  • Another document akin to the Nebraska Sales Tax form is the Streamlined Sales and Use Tax Agreement (SSUTA) Certificate of Exemption. This document is part of a concerted effort by states to simplify and standardize sales and use tax collection and administration, especially for businesses that operate in multiple states. Like the Nebraska Sales Tax form, the SSUTA Certificate requires detailed information outlining the reason for exemption and includes categories such as resale, government, and educational, or nonprofit entities. Both forms serve as a declaration by the purchaser that the items bought are for purposes that qualify for tax exemption under the law. The forms also place responsibility on the purchaser to ensure the accuracy of the information provided, highlighting the importance of compliance in tax-exempt transactions.

  • Additionally, the Nebraska Sales Tax form shares characteristics with state-specific resale certificates used in other jurisdictions. While each state's form may have unique elements based on local sales tax laws and exemptions, the core function remains the same—to certify that the purchase of goods is for resale and not subject to sales tax at the time of purchase. Essential elements such as business identification, nature of the exemption, and a declaration of intent align closely across different states. This similarity underscores the universal need among businesses to legitimately avoid paying sales tax on items that will be resold to end consumers, effectively avoiding taxation at multiple levels.

Dos and Don'ts

When completing the Nebraska Sales Tax Exemption form, certain guidelines will help ensure the process is done correctly and efficiently. Here’s a list of things you should and shouldn't do:

  • Do:
    1. Read all instructions on the reverse side of the form carefully before filling it out.
    2. Ensure all sections relevant to your exemption category are thoroughly completed.
    3. Verify that the name and address of both the purchaser and the seller are accurate and complete.
    4. Check the appropriate box to indicate the type of certificate - either single purchase or blanket.
    5. If claiming a blanket exemption, remember it remains valid until revoked in writing.
    6. Sign and date the certificate to certify the accuracy and completeness of the information.
    7. Keep a copy of the completed certificate for your records, as sellers are required to retain this document.
    8. Provide clear documentation for the reason behind the sales tax exemption - whether it's for resale, an exempt purchase, or a contractor purchase.
  • Don't:
    1. Leave any required fields incomplete, as this could invalidate your certificate.
    2. Attempt to use the exemption form for purchases that do not qualify under the listed exemption categories.
    3. Forget to indicate your Nebraska Sales Tax Permit Number or Foreign State Sales Tax Number where necessary.
    4. Misrepresent the nature of your purchase. This could result in penalties, including fines larger than the tax itself.
    5. Overlook the need to provide additional information for certain exemptions, such as the intended use of purchased items.
    6. Ignore the requirement for authorized signature, as an unsigned certificate is not valid.
    7. Send the completed form to the Nebraska Department of Revenue - it should be retained by the seller.
    8. Assume non-profit status automatically grants exemption without proper completion and submission of this certificate.

Following these guidelines ensures that your sales tax exemption process is both smooth and compliant with Nebraska state laws. Remember, accuracy and thoroughness are key to a successful exemption claim.

Misconceptions

Understanding the Nebraska Sales Tax Form, particularly the Resale or Exempt Sale Certificate, can be tricky. Without proper guidance, it's easy to fall victim to common misconceptions. Let's clear up some of these misunderstandings to ensure compliance and avoid unnecessary penalties.

  • Misconception #1: Non-profit organizations automatically qualify for sales tax exemption. In reality, not all non-profits are exempt from Nebraska sales tax; they must qualify under specific categories and complete the appropriate section of the form.
  • Misconception #2: Every purchase made by an exempt organization is free from sales tax. However, exemptions apply only to items purchased for the organization’s use. Items bought for resale require a Resale Certificate.
  • Misconception #3: The form is sent to the Nebraska Department of Revenue for approval. Contrary to this belief, the form should be retained by the seller for audit purposes, not sent to the Department of Revenue.
  • Misconception #4: A single form applies for all types of tax-exempt transactions. The form requires specific sections to be completed based on the type of exemption claimed, such as for resale, exempt purchases, or contractor purchases.
  • Misconception #5: The exemption certificate covers every purchase indefinitely. While blanket certificates are valid until revoked, they are applicable only for the specified type of transaction with the seller and must be updated for different transactions or sellers.
  • Misconception #6: Sales Tax Number is always required. This number is necessary for resellers or manufacturers claiming an exemption, but certain exemption categories, such as government purchases, don't require this number.
  • Misconception #7: The certificate is only for tangible goods. In reality, the form can also apply to exempt services from sales tax, depending on the exemption criteria met by the purchaser.
  • Misconception #8: Out-of-state purchasers cannot use Form 13. Out-of-state buyers can use the form, providing their foreign state sales tax number when claiming exemption as a reseller or for other qualified exempt purposes.
  • Misconception #9: A filled-out certificate guarantees exemption. An incorrectly completed or misused certificate does not only fail to exempt the purchase but can also lead to penalties. Accuracy and proper use are essential.
  • Misconception #10: Penalties for misuse are minor. The penalties for incorrect or fraudulent use of the exemption certificate can be substantial, including a $100 fine or ten times the tax, whichever is greater, for each misuse.

Correcting these misconceptions ensures that organizations and businesses can navigate the complexities of the Nebraska Sales Tax Form more efficiently, enabling them to claim the appropriate exemptions while fulfilling their legal obligations.

Key takeaways

Understanding the Nebraska Sales Tax form can be straightforward if you keep these key takeaways in mind:

  • Kinds of Certificates: There are two main types of certificates you can issue, "Single Purchase" or "Blanket." A blanket certificate applies until it's revoked in writing.
  • Sections Explained: The form is divided into three sections for different purposes: Section A for resale, Section B for exempt purchases, and Section C specifically for contractors’ purchases.
  • Resale Certification: When completing Section A for resale, clarify your role (wholesaler, retailer, etc.), describe the product, and if applicable, provide your Nebraska or foreign state sales tax number.
  • Exempt Purchases: Section B requires you to specify the exemption category and provide details such as the description and intended use of the items, or the exemption certificate number.
  • For Contractors: Contractors need to complete Section C, indicating their exemptions for purchasing building materials or fixtures, along with their Nebraska Sales or Consumer’s Use Tax Permit Number.
  • Penalties for Misuse: Incorrectly completing the certificate for non-qualifying purchases can result in a $100 penalty or ten times the tax amount per misuse.
  • Document Retention: Sellers are required to keep this completed certificate as part of their records but should not send it to the Nebraska Department of Revenue.
  • Completing the Certificate: A properly completed certificate must identify both the purchaser and seller, indicate the type of certificate, state the basis for exemption, include the authorized signature with title and date, and, if applicable, a sales tax number.

    • Navigating Nebraska's Sales Tax Form requires attention to detail and an understanding of your purchase's purpose. Using this guide, you can confidently fill out the form, ensuring compliance and avoiding penalties. Both sellers and buyers have responsibilities in maintaining the correctness and integrity of the information provided.

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