This article explains how businesses selling through online marketplaces and located outside of the United States can provide Gelato with the necessary exemption certificates to comply with state and local tax laws.
Sales Tax Compliance for International Sellers
While online marketplaces often manage sales tax collection, it's crucial for both Gelato and our sellers to adhere to state and local exemption regulations. To ensure compliance, we require valid exemption certificates from customers claiming a resale exemption.
Gelato is dedicated to simplifying this process and meeting each state's unique requirements. As an international seller operating outside the U.S., this article provides a clear guide on how to provide the required documentation based on your business needs. If your business is registered in at least one U.S. state, please refer to our Sales Tax Exemption Instructions for Marketplace Sellers help article.
Exemption Certificate Instructions
If your business is located outside of the United States and is not registered in any U.S. state, you may be eligible for sales tax exemption in certain states. Please review the following guidelines to determine the appropriate forms based on your business activity:
Note: If you lack an active sales tax permit number in any of the states listed below, a foreign tax ID number, such as a VAT, is generally acceptable.
Exemption Based on Business Location
The following states offer exemptions based on your business location and whether you are required to register in your home jurisdiction:
Registration Not Required in Home Jurisdiction: You may be eligible for exemption in 12 states. These states accept either the SST Form (Nebraska, Ohio, South Dakota, Wisconsin - indicate "Not Required - Resale") or the MTC Form (California, Idaho, Illinois, Pennsylvania, Texas - include "No Nexus"). Additionally, state-specific forms are required for Alaska (marketplace sales only), Florida, Louisiana, and New York.
Business Based Outside the U.S. with Foreign Tax ID: You can receive resale exemptions in 14 states by using your home country's tax ID on specific certificates. These states include:
Certificate Types and Instructions
Different states accept different types of resale certificates. Below is a breakdown of each certificate type and the states that accept them:
Streamlined Sales Tax (SST) Resale Certificate: Accepted in Arkansas, Indiana, Kansas, Kentucky, Nebraska, New Jersey, North Dakota, Ohio, Oklahoma, Rhode Island, South Dakota, Tennessee, Utah, Washington, Wisconsin, and Wyoming. Include your home country's tax ID on each line, labeled as "[Country] Resale." Access the SST exemption certificate and instructions: Streamlined Sales Tax (SST) form (see page 2, section 5, steps 3 & 4 for detailed instructions).
Uniform Sales Resale Certificate – Multijurisdictional (MTC): Accepted in Connecticut and Texas. Include your home country's sales tax number on each line as "[Country] Resale," unless stated otherwise. For Connecticut, specify "country" and "tax ID." For Texas, indicate "no nexus" and provide your country's tax ID. Access the MTC exemption certificate and information here: Uniform Sales and Use (MTC) form.
State-Specific Resale Certificates:
Alaska: Marketplace sellers making ALL sales through a Marketplace Facilitator do not need to register. Fill out the Marketplace Seller Affidavit. If selling through a personal website, registration as a remote seller is required.
Florida: Non-registered customers can provide a letter instead of a state-issued resale certificate to exempt sales on printed materials. The letter should state: "Tax is not levied on the sale by a printer to a nonresident print purchaser of material printed by that printer for that nonresident print purchaser when the print purchaser does not furnish the printer a resale certificate containing a sales tax registration number but does furnish to the printer a statement declaring that such material will be resold by the nonresident print purchaser. [Fla. Stat. §212.06(5)(d)." Complete the Gelato FL Letter to claim an exemption: Gelato FL Letter Resale Exemption Certificate.
Louisiana: A resale certificate is not mandatory if you are not registered in Louisiana. A letter on company letterhead stating: "is not a registered dealer, has no physical presence, does not cross the Louisiana economic thresholding $100,000 in Louisiana sales or 200 Louisiana sales transactions" is sufficient. If you choose to register, visit the Louisiana Department of Revenue.
New York: Complete form ST-120. If registration is not required in your home jurisdiction, indicate "NA" for the location.
Obtaining Additional Exemptions and Seeking Professional Advice
If you need to obtain a resale exemption in a state not listed above, we recommend consulting with a tax advisor or contacting the relevant state's Department of Revenue. Registration in at least one state may be necessary to qualify for additional exemptions.
Note: This information does not constitute professional tax advice. Consulting a qualified tax specialist is recommended for personalized guidance on your specific tax obligations.
Submitting Your Certificates
Once you've completed the necessary certificates, please upload them to our secure portal: Resale Certificates - Gelato. Our team will review your documents and update your exemption status promptly.
For any assistance with resale certificates, please contact our Gelato Team at [email protected].