Stop Overpaying Sales Tax in These States (MTC Resale Certificate Tutorial)

0:38 MTC compared to the SST certificate

At LedgerGurus, we help ecommerce businesses manage their sales tax across all of the states. And one of the biggest issues we see: sellers getting charged sales tax by vendors, even when they legally don't have to be. That's where exemption certificates come in.

If you've already watched our video on the SST resale certificate, you know that form works in 24 states, but only the ones in the streamlined sales tax group. If your vendor is asking for a resale certificate in a non-SST state, the MTC form is often your next best option.

The MTC form, short for Multistate Tax Commission, is accepted by over 30 states. That makes it a powerful tool if you're buying inventory or working with dropshippers in states outside the SST network. The good news: you don't always have to be registered in those states to use it. The not so good news: there are footnotes, restrictions, and fine print that you have to get right. This isn't a fill it out and forget it kind of form.

1:15 Filling out the MTC form

You can Google MTC resale certificate PDF or head to mtc.gov and search for the Uniform Sales and Use Tax Resale Certificate. We'll also drop the direct link in the description below.

Let's walk through the form together. Page one is the actual form. The rest are all footnotes and instructions. You'll want to enter the seller's name and address. That's your vendor or dropshipper asking for the certificate. Enter your business name and address as the buyer. Add a short description of your business. Usually, ecommerce retail works.

In the description of tangible product or services, list what you usually purchase from this vendor. For example, apparel for resale or consumer electronics for resale. Now, for each state, enter your resale or sales tax ID, or your home state ID, FEIN, or driver's license if the state allows it.

1:57 Read the footnotes

And here's the most important part. You must read the footnotes. Some states will reject the MTC form unless you meet special requirements. For example, Florida requires the seller to get an additional authorization number from the Department of Revenue. Arizona and several other states say it's only valid for resale, not for any other types of exemptions.

So, read those pages carefully. Yes, they're boring, but don't skip the fine print. The biggest mistake that sellers make is assuming that all states treat this form the same. They don't.

2:22 Getting help with sales tax

Now, if you're approaching or over a million dollars in annual revenue, this is where sales tax gets too risky to DIY it any longer. At LedgerGurus, we help ecommerce sellers with sales tax compliance in all the states, resale certificate strategies, registration, filing, and nexus monitoring, and platform integration with Shopify, Amazon, and others. Head to ledgergurus.com and click on contact us, and we'll help you build a plan that protects your business.

And don't forget to grab our free guide, 10 Steps to Make Sure Sales Tax Doesn't Burn Down Your Ecommerce Business. The link is in the description.

Do you have a vendor pushing back on the MTC form? Drop your questions in the comments. We do actually read and respond to all of them. If this video helped, give it a like and subscribe. And we've got more ecommerce sales tax tips coming your way.