All retail sales in Idaho are taxable unless specifically exempted by Idaho or federal law. A sale is exempt from sales and use tax only if Idaho law specifically allows an exemption. For example:
- The buyer is:
- An organization that can buy all goods and services exempt from sales and use tax
- An organization or person that can buy certain goods or services exempt from sales and use tax
- The goods or services:
- Will be used in a certain way, so they may be exempt from either sales tax, use tax, or both
- Are exempt from sales and use tax for all buyers
- Are for resale, so they’re exempt from sales and use tax
Restrictions can apply to any tax-exempt sale or use. In all cases, the buyer and seller must keep clear and complete records to explain why tax wasn’t charged or paid. Usually, the buyer must complete an exemption certificate.
If the sale is taxable and the buyer doesn’t pay tax to the seller, the buyer owes use tax. The amount of use tax due is the same amount as if the seller had charged Idaho sales tax.
This guide will cover:
- Buyers that aren’t charged tax
- Goods and services that are or can be exempt because:
- They’re exempt from sales tax for all buyers
- The buyer will use them in an exempt way, or
- The buyer will resell them
Documentation
- The buyer must give the seller a completed
Form ST-101 – Sales Tax Resale or Exemption Certificate (Read more about exemption certificates.) - The exempt buyer should check the box(es) that apply. Read the Form ST-101 instructions. In some cases, sellers must keep a copy of the documents the buyer provides.
- Where noted, alternate documents are acceptable or required.
- The seller should keep the certificate and any other documentation and not charge tax on future qualifying sales to the buyer.
- The exemption certificate must be completed, signed, and dated.
- Buyers that are never taxed don’t have to pay use tax.
We may bill sellers or buyers for the tax due if they don’t keep records to explain why sales weren’t taxed.