Recordkeeping for Sales and Purchases

You must keep records of all the purchases and sales that your business makes. Your records must show that you properly collected, reported and paid or forwarded taxes to Idaho.

Records you must keep

  • Normal books of account
  • Documents that support entries in the books of account
    • Bills
    • Receipts
    • Invoices
    • Cash register tapes
    • Credits granted
    • Job or work orders
    • Contracts
    • All schedules or working papers used to prepare your tax returns
  • Copies of sales tax resale or exemption certificates (e.g., Form ST-101)
    Note: Keep resale or exemption certificates for as long as the nonprofit does business with that buyer, plus four years We’ll bill you for tax due if you don’t have completed exemption certificates for buyers you sell exempt to.
  • Tax returns
  • Tax payments

What the records must show

  • Gross receipts from sales and services made in Idaho, even sales that you or your customer might consider exempt from tax. If you deliver the product or service somewhere other than your place of business, you must also keep records that prove where delivery took place.
  • The identity of customers claiming an exemption, the type of exemption, and what you sold them exempt.
  • All deductions claimed in filing returns.
  • The total purchase price of anything you bought for sale, rental, lease or your own use.
  • The amount of sales tax collected from your customer or that you paid to a vendor.

You must keep all sales and use tax records and exemption certificates for at least four years. (You should keep them for seven years if you don’t file returns.)