Frequently Asked Questions About Purchases
- Who is responsible for completing a Purchase Exemption Certificate?
- What is a Purchase Exemption Certificate (PEC)?
- How do I claim an exemption from RST on goods I intend to resell?
Who is responsible for completing a Purchase Exemption Certificate?
The purchaser is responsible for completing the PEC when claiming an exemption from the supplier; however, the vendor/supplier is responsible for having a PEC on file to support any exempt sales and may be assessed for tax not collected on exempt sales if he/she does not have a properly completed PEC on file.
Vendors are not responsible for verifying that the customer is entitled to issue a PEC.
What is a Purchase Exemption Certificate (PEC)?
The PEC is the form that is completed by anyone entitled to claim an exemption from RST on the purchase of tangible personal property or taxable services, or when entering into a contract of insurance or a benefits plan.
If you provide a blanket Purchase Exemption Certificate to a supplier, you will have to renew it after a period of four years.
Guide 204 - Purchase Exemption Certificates
How do I claim an exemption from RST on goods I intend to resell?
By providing a properly completed Purchase Exemption Certificate to your supplier(s).
