Record-Keeping

If you do not charge tax on a sale to the federal government, you must keep proof the purchase is not taxable. Examples include:

• A completed Form ST3, Certificate of Exemption.
• A completed purchase order, or similar document, that clearly identifies the purchaser.
• Proof of direct payment by the federal government such as a check or credit card number. Keep a copy of the sales invoice, receipt, or online transaction log that includes payment information.

If you do not charge sales tax on a sale to a foreign diplomat or mission, review the exemption card being used to make sure the sale qualifies. You must keep proof the purchase is not taxable. Examples include:

• A completed Form ST3, Certificate of Exemption.
• A copy of the exemption card.

If the card is expired, the sale is taxable. You may verify the card at: https://www.state.gov/sales-tax-exemption/.

Note: Pay close attention to any restrictions listed on the card. For example, some cards require sales tax on prepared food, hotel rooms, or on purchases under a certain dollar amount.

If you have questions about the exemption card or what is covered, call the Department of State at the number on the back of the card.