Tax Entity Exemption Certificates
Introduction
The Kansas Legislature requires the Department of Revenue to issue numbered exemption certificates to exempt entities and organizations. The tax-entity exemption application enables a qualified organization to apply for, update, and print a sales and use tax exemption certificate. The certificate is required to be presented by Kansas based entities to retailers to purchase goods and/or services tax exempt. Publication KS-1520, Sales Tax Exemption Information contains additional information on the use of exemption certificates. We have provided a list of qualified entities.
Who needs a certificate
To claim exempt status on purchases, the qualified entity and organization must be authorized by statute and provide to the retailer a department issued Tax Entity Exemption Certificate. The certificate must be completed and signed by an authorized agent of the organization and presented to the seller. Only the organization check, credit card or invoiced charges to the organization are eligible for exemption. Purchases made by cash, personal checks or personal credit cards are not exempt.
Who doesn't get a numbered exemption certificate
Numbered exemption certificates are not being used for sales of resale transactions, agricultural exemptions, manufacturing machinery, equipment or consumed in production transactions. Also, agencies and instrumentalities of the federal government are not issued a numbered certificate. For these transactions there are no changes to the existing process or certificates. The business certificates are located in Publication KS-1520, Sales Tax Exemption Information.
Update, Print, Cancel Certificates
Once a certificate has been issued, there is the ability to update contact and address information, print and save copies of the certificate or cancel the certificate if the organization ceases to exist.
Applying for a certificate
To apply for an entity exemption certificate is a two-step process. First you will be directed to the KDOR Customer Service Center (KCSC) to log into the system. If you do not have a KDOR Customer Service Center (KCSC) account, register by providing some basic information and create your own User ID and Password. Some of the information provided will be used in the exemption certificate application. After logging in to the KDOR Customer Service Center (KCSC) site, you will be forwarded to the certificate page.
Accessing a certificate already issued
You can also access a certificate that has been issued to the entity. To access the certificate, you will need the Kansas Exemption Number and the PIN/Access code that was on the cover letter mailed with the certificate. After logging into the KDOR Customer Service Center (KCSC), you will be forwarded to the certificate page.
Expired Exemption Certificate
Any exemption certificate issued to a tax exempt entity contains an expiration date. Expired exemption certificates are not valid for claiming exemptions from sales tax when making purchases from retailers. If your exemption certificate has expired you must complete a new application and request a new exemption certificate be issued to your entity.
Additional Information
For additional information on the entities and organizations that qualify for exempt status or other information on the exemption certificates contact the Office of Policy and Research at 785-296-3081 or kdor_exemptcert@ks.gov.
Is a nonprofit, 501(c)(3) organization required to file a copy of our annual IRS Return of Organization Exempt for Income Tax, Form 990 to the Kansas Department of Revenue?
No, non-profit organizations who are recognized by the IRS as a 501(c)(3) non-profit organization do not have to file a copy of the Form 990 with the Kansas Department of Revenue. Please note, most non-profit organizations are required to file an annual report with the Kansas Secretary of State's Office. To determine if you need to file a report with the Secretary of State, go to their website, www.KSSOS.org