Exemptions Are Not Just at the Point of Sale

Original source: https://www.taxnotes.com/tax-notes-today-state/exemptions-and-deductions/washington-dor-biogas-company-owes-tax-sales-producer/2022/05/19/7dhn3

Sometimes exemptions are not just at the point of sale. For example, in Washington, a biogas company is liable for failing to collect tax on sales to a renewable energy producer even if the sales were subject to an exemption, because the producer was required to pay the tax and then apply for a refund. A tax review officer in the DOR’s Administrative Review and Hearings Division ruled that the biogas company itself was not eligible for the exemption and could not be relieved of its duty to collect the sales tax, regardless of whether the producer qualified for a refund under the exemption. Other states have similar structures.

For more information, read Det. No. 20-0253, 41 WTD 213 (2022) here

Read more about exemptions here