Did you know that if you have valid tax exemption certificates from each state where you conduct business these certificates can be submitted to Kleen-Rite? Once you submit this paperwork, you can order your supplies at Kleen-Rite without paying sales tax for eligible products. This guide will teach you how to submit valid tax exemption certificates. There are a few items we need to cover first.

Who is Eligible for a Sales Tax Exemption?

Certain organizations qualify as exempt or partially exempt from sales tax and can purchase from Kleen-Rite without paying sales tax once approved. This includes organizations in the car wash industry that may be eligible for a partial resale exemption.

The list of eligible tax-exempt organizations varies from state to state because each state creates its laws, rules, and regulations. There are even some states that don’t charge sales tax. You are responsible for knowing the laws, rules, and regulations in the states where you conduct business. Avalara offers a useful guide covering car wash tax information broken down by state with links to tax codes, resources, and documents from each state.

Below is a list of some common organizations that may be eligible to receive sales tax exemption.

Common Organizations that May Receive Sales Tax Exemption

• Retailers Buying Products to Resell to an end-user
• Manufacturers Buying Products to be used and consumed in the production of a final good
• Agricultural Production
• Direct Pay Permit
• Federal/State/Local/Tribal Governments
• Charitable, Religious & Other Qualifying Not-for-Profit Entities
• Other Miscellaneous Exemptions

How to Claim a Sales Tax Exemption with Kleen-Rite

Now that we got those items out of the way, we can teach you how to submit your tax exemption certificates to us at Kleen-Rite.

Here is a step-by-step guide with instructions:

• Before you begin, have all your applicable sale tax exemption certificates ready.
• After confirming your sales tax-exempt status with each applicable state, properly executed exemption certificates can be emailed to salestax@kleenrite.com
  • If you know your Kleen-Rite customer number please include it in the email subject line.
  • Note: Kleen-Rite requires an authorized exemption certificate for each state where the organization will ship orders and conduct business.

What Does a Properly Completed Form Include?

Generally, a properly completed exemption certificate includes the following criteria:

1. Designation of a single-use or blanket certificate (blanket is suggested for recurring business relationships).
2. Purchaser information including the business name, registered business address, sales tax license/permit number, effective date, and a signature from an authorized representative.
3. Selection of the proper sales tax-exempt reason.
4. A description of the property intended to be covered by the designated exempt reason.

What if I Made a Purchase Before Submitting My Tax Exemption Documentation?

If you made a purchase before submitting the certificate, Kleen-Rite Corporation will issue a sales tax refund if certain conditions are met. We will ONLY offer the tax credit if a properly executed exemption certificate is provided within 30 days of the original invoice date.

To request a sales tax refund for items shipped outside of the United States via a Freight Forwarding Agent, supporting documentation which includes bills or ladings, waybills, and export declarations can be submitted to salestax@kleenrite.com.

How Does This Look on My Invoice?

Many states and localities across the United States apply some form of sales tax on consumer purchases, including items sold by Kleen-Rite. We will always show the sales tax total separately on your final invoice. That way it is clear to you and us. In most cases, the sales tax rate charged is the tax rate in effect at the destination or ship-to location. On traditional and web order confirmations, sales tax will always show as “to be determined” or “TBD”. The final invoice will show the total sales tax applied to the order. All possible exemptions are applied to the invoice at this stage. The image to the right will show you exactly where taxes appear on your invoice.

Now that you know how to submit your sales tax exemption certificates to Kleen-Rite, you can file your paperwork with us, and order eligible supplies at Kleen-Rite tax-free. We hope this guide is helpful. Should you have any questions regarding this process that we did not answer, feel free to contact our accounting team. They will be happy to assist with any questions you may have!

Do you want to learn more about car wash taxes? Check out our blog which helps you understand your taxes as a car wash business owner.