Kansas imposes various requirements on purchasers doing business in Kansas. We recommend that you go through the items below to help you with the most frequently asked questions concerning purchasers and sales and use tax issues.

Tax exemption certificates. An exemption certificate may be issued by a purchaser of a nontaxable item. The exemption certificate may be based on the type of transaction (such as a resale exemption) or on the item itself.

Resale exemptions. In Kansas sales for resale are specifically excluded from the definition of a retail sale and are therefore exempt from sales and use tax. Any retailer selling tangible personal property or furnishing taxable services cannot assert that a sale is exempt from taxation unless the retailer possesses a properly executed exemption certificate provided by the purchaser claiming the exemption.

Resale exemption certificate. A retailer that accepts a resale exemption certificate in good faith is not liable for the sales tax and has no duty to collect it. The resale exemption certificate must include the following information:

• the purchaser's name and address
• the purchaser's Kansas sales or use retail registration number
• a description of the goods being purchased
• a statement that the goods are being purchased for resale

Blanket resale certificates. A retailer making recurring exempt sales of the same type to the same purchaser need not secure a separate exemption certificate for each transaction but may accept, at the retailer's own risk, a blanket exemption certificate covering future sales.

Purchases from out-of-state vendors. If any taxable item was subjected to sales or use tax by another state at a rate lower than 5.3 percent, use tax is applied at the difference between the other rate and 5.3 percent.