Sales to Commercial Farmers Taxable Without Proof of Exemption

Wednesday, May 10th, 2017

 
 
A tractor working a commerical farm.
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Arkansas
Retail

The Arkansas Department of Finance and Administration recently upheld a sales tax assessment against a retail seller of farm and agricultural supplies.

The taxpayer primarily made sales to commercial farmers, but the store was also open to the public. When making exempt sales, the taxpayer did not obtain proof that its customers qualified for an exemption.

Arkansas provides several exemptions that apply to commercial farmers. To make an exempt sale, sellers must obtain proof that customers qualify for an exemption. At a minimum, the seller must obtain a signed exemption claim.

The taxpayer was unable to provide proof that its sales were exempt. As a result, the sales tax assessment was upheld.

https://www.ttrus.com/sites/default/files/ar/17-382.pdf


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TTR has a website that companies subscribe to and use daily. This website provides a list of everything that can be bought or sold in the U.S. It provides simple answers to whether buying or selling these items is taxable (subject to a sales tax or other tax), and it provides all the legal authority to support these tax answers.

TTR likes to keep things simple and fun, which is why it has great people who provide help to clients on any support questions they have about transaction tax issues.

Please visit TTR on the web at www.ttrus.com or call 866.578.8193.

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