Tax-exempt purchasing

For a potentially tax-exempt hardware purchase, identify the purchasing entity, delivery destination, and exemption basis, then provide the documentation applicable to that transaction. Precision Tech Supply (PTS) needs those details to review the request and confirm the tax treatment before the order is finalized.

Who may qualify for tax-exempt purchasing?

Schools, government entities, qualifying nonprofits, and resellers may be eligible under the applicable state's rules. Organization type alone does not establish that every purchase is exempt. The purchasing entity, use of the goods, destination, and required documentation matter.

For Texas, the Comptroller explains that a federal employer identification number does not itself establish exemption. Its guidance also explains when qualifying organizations can use exemption certificates. Review the Texas exemption FAQs and nonprofit and exempt organization purchasing guidance for the relevant requirements.

Exemption certificate or resale certificate?

These document different reasons for purchasing without sales tax. An exemption certificate supports a qualifying exempt purchase. A resale certificate relates to goods purchased for resale under the applicable rules; it is not a blanket exemption for equipment a reseller buys for its own use.

Texas provides both certifications in Form 01-339. Use the appropriate section and follow its instructions. Other states may require different forms or documentation.

How to request a tax-exempt hardware quote from PTS

1. Describe the purchase: send part numbers, quantities, and needed-by dates using the quote request form.
2. Identify the purchaser: provide the entity's legal name, billing details, ship-to location, and reason for the requested exemption.
3. Provide the applicable documentation: supply a completed certificate and supporting documentation where required. If unsure which documents apply, contact the team before approving the order.
4. Wait for confirmation: exemption treatment must be reviewed. Check that the final quote and invoice reflect the accepted treatment for that purchase.

Sending a certificate does not by itself confirm exemption approval. If documentation is incomplete or does not apply, the transaction may remain taxable.

What if I have multiple locations or have ordered before?

Include each ship-to state and identify the purchasing entity for each location. Do not assume one certificate applies to every state or every entity. Tell PTS when names, addresses, exemption status, or purchasing arrangements change. Previously supplied documentation may need to be updated or checked for a new transaction.

Does a purchase order make an order tax-exempt?

No. A purchase order documents purchasing instructions; it does not establish tax exemption. If your institution uses POs, mention that in the quote request and confirm payment terms separately from tax treatment.

What if tax has already been charged?

Contact PTS with the order number and applicable documentation to request a review. Any adjustment or refund depends on the transaction, documentation, and applicable rules; do not assume exemption can be applied retroactively.

This guide explains the purchasing workflow. For eligibility and form requirements, use the tax authority for the relevant state. For the hardware list itself, see how to request a business hardware quote.

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