Tax Exemption Program
Tax exempt businesses may use their tax-exempt status for in-store or online purchases with IFA. Read below to learn more about tax exemptions and/or how to register to use an existing tax-exempt status at IFA.
Most states allow for some type of sales tax exemption from paying sales tax on qualifying purchases. These are determined by state law, and generally fall into three types of exemptions.
- Product Based: The item purchased is exempt from sales tax by statute. No tax-exempt form is required.
- Entity Based: The person or entity purchasing the product is exempt on qualifying purchases. A tax-exempt form is required for most entities and to establish exempt status with IFA.
- Use Based: Tax status is determined by the buyer’s use of the product. A tax-exempt form is required to establish exempt status with IFA.
Include your tax exemption form when applying for your IFA account so it can be attached to the account for future purchases. All exemption forms should be signed and dated to align with government policy. The system will automatically deduct sales tax on qualifying purchases.
Please feel free to speak with a sales associate at your local IFA Country Store or contact IFA's Credit Department at [email protected] or 801.908.1233.
IFA does have the opportunity upon approval to create a credit on your account if an exemption was presented after the purchase. The credit would be for the tax amount billed on invoices within the existing calendar year.
Tax exemptions may be used for purchases immediately after an IFA account is set up and approved with tax exempt status.
Tax exempt forms can be rejected for various reasons. Common reasons include:
- The exempt form wasn’t signed
- For exemptions such as resale and non-profit entities, the sales tax license number was:
- Omitted
- Not valid or a federal tax id number was entered in place of the sales tax license number
- For non-profit and local government entities (city, county, state), the exemption is not valid in a different state
- The item purchased did not qualify for the tax exemption indicated on the form on file
- No exempt form on file
IFA can provide general guidance on which exempt form is needed and the basic information on how to fill it out. However, IFA cannot provide legal advice on exemptions. It is ultimately your responsibility to understand which exemptions are applicable to you. Please contact the IFA Credit Department at [email protected] or 801.908.1233 or Glenn Fredrickson for assistance.