Sales Tax Exemption FAQ

We understand that wholesale accounts, sales tax, and exemption certificates can be stressful, complicated topics, especially for new business owners. But fear not! We're here to help demystify the often clunky and convoluted process.

Accounts

What's with the different account types?

There are two different types of Farmer Bailey accounts: Retail Customer accounts and Wholesale Company accounts, and the latter requires an application.

Our prices and catalog are exactly the same for everyone. However, we’re only able to collect sales tax exemption certificates from Wholesale Company account holders.

What type of account do I need?

If you are an individual (non-business) OR a business without a sales tax exemption certificate, click here to access / create your Retail Customer account and begin ordering right away. Your orders will be subject to state sales tax (where applicable). You simply enter your email address, receive a code in your inbox, then enter the code to start shopping. No registration or sign-up of any kind.

If you are a business with a state-issued sales tax ID number eligible for tax-exempt ordering, please click here to apply for your Wholesale Company account.

What type of account do I have?

Great question! When you log into you Farmer Bailey account, there's not one clear place to check if you have a Retail Customer or a Wholesale Company account. However, Wholesale Company account holders will always have to select their Location immediately after logging in. Additionally, your Profile page will list your Company Name as well as Staff and Permissions. If those are not there, you are logged in with a Retail Customer account.

I just applied for a wholesale account. Now what?

We'll process your application within 5 business days, at which time you'll receive an Exemption Certificate Request. This email contains a link to our secure Avatax portal, where you can complete and submit your sales tax exemption certificate. As soon as that has been validated, you'll receive one more email to notify you that your Wholesale Company is all set for tax-exempt ordering!

Oops! I applied for a Wholesale Account but I don't have an exemption certificate. Is that ok?

That's totally OK! You'll simply be subject to state sales tax until you upload a certificate.

I'm trying to check out but you're charging me sales tax. What do I do?

If you have a validated exemption certificate on file with us and your account should be tax exempt, yet you're still seeing sales tax applied at checkout, email us at info@farmerbailey.com before placing your order so we can assist you. One of the following four situations is going on:

  1. You don't have a Wholesale Account
  2. Your certificate is expired.
  3. You have multiple Farmer Bailey logins. If you logged in using an email address different from the one used to create your Wholesale Company account, you will be charged sales tax. This is very common. Thankfully we're able to quickly and easily merge all of your logins so you can access the same Wholesale Company account using multiple email addresses.
  4. You have not yet submitted a sales tax exemption certificate.

Note: New Wholesale Account applications can take up to 7 days to process. If you feel that you must place this order now and pay sales tax, it cannot be refunded later, but you can speak with your tax preparer to ensure that all eligible deductions are claimed on your next tax return.

Sales Tax Exemption Certificates

What is an exemption certificate?

A sales tax exemption certificate is an official document that allows a buyer to purchase otherwise taxable goods or services without paying sales tax. The buyer presents this certificate to the seller as proof that they qualify for a specific tax exemption.

Exemption certificates vary widely across the United States because each state sets its own tax laws, resulting in different regulatory agencies, filing forms, and compliance requirements. While some jurisdictions require certificates to be renewed on a strict annual or multi-year schedule, others issue permanent documents that remain valid indefinitely as long as the business relationship continues.

Is an EIN the same as a Sales Tax ID?

No.

An EIN (Employer Identification Number) is a federal tax ID issued by the IRS used to identify your business entity for federal taxes, payroll, and banking.

A Sales Tax ID (sometimes called a Resale Number or Seller's Permit) is issued by a state government specifically to track, collect, and report state sales taxes.

What about agricultural exemption?

Depending on your state's tax laws, you may be exempt from paying state sales tax on eligible agricultural purchases. To receive this tax-free status, please provide us with a valid, state-approved agricultural exemption certificate.

Exemption Certificate Submission

Do I need to create an account in the tax portal?

No, you do not need to create an account in the Avatax portal. You'll see buttons at the top that say "Sign In" and "Sign Up", but these are not for you. Sorry- we know that's confusing and annoying. Simply click "Create Requested Document" to get started.

Can I just email you my tax exemption certificate?

No.

Do I need to submit multiple certificates or supporting documents?

No. As long as you submit the correct certificate, one is all we need.

Under no circumstances do we require your:

  • Articles of incorporation
  • Nursery license
  • Trade Name Registration
  • Anything issued to you by your Secretary of State’s office
It’s asking me to submit the wrong certificate.

By default, you will likely be prompted to submit your Sales & Use Tax Exemption Certificate or Reseller’s Permit issued by your state’s Department of Revenue, Taxation and/or Finance. (The required document and the name of the office that issues it vary by state.) If you would prefer to submit a valid Agricultural Exemption for your state instead, that is perfectly fine, and you have the option of uploading that pdf. Please see the images below.

What's your address?

Most of the information in the online form will auto-populate for you, including our contact information. If it does not, please use:

Farmer Bailey Inc.
PO Box 883
Derby VT 05829

*Remember, you are the Purchaser and Farmer Bailey Inc is the Seller.

Can I get a refund on the sales tax I paid in the past?

No. We cannot refund sales tax paid on orders that were placed before we had a valid certificate on file. However, many customers simply include sales tax paid on business purchases as a deductible expense on their annual tax returns. Speak with your tax preparer to verify the best approach for you.

I'm Confused

You'd rather be out in the field than dealing with these shenanigans. We understand, and we're here to help. Here's the simple breakdown of all the steps:

  1. You submit a new Wholesale Company account application on FarmerBailey.com.
  2. Within 5 business days, we send you an Exemption Certificate Request email with a link to our Avatax portal.
  3. You click on the link to access the portal.
  4. Click "Create Requested Document" and follow the prompts to complete the form, digitally sign, and submit it within the portal. This just takes a minute or two.
  5. You are not tax-exempt yet. First, we must validate your certificate. Orders placed within this window of pre-validation are subject to sales tax.
  6. Within 48 hours you'll receive an automated confirmation email notifying you that your certificate has been accepted. Your account is now all set for tax exempt ordering! Well done!

Please note: if you get to step 4 and realize that you don't have a Sales Tax ID or otherwise can't complete the form, that's OK! You can still order from us. You'll simply be subject to sales tax.

If you encounter any obstacles, email is at info@farmerbailey.com anytime.

More of a visual learner?

Below is a step-by-step guide to the Exemption Certificate submission process.

compliance is fun!

1) Quick & Easy

This is what you'll see when you follow the link in the Certificate Request email and access our Avalara CertExpress portal. Ignore the "sign in" and "sign up" buttons, and proceed to the bottom. 99% of you will click "Create Requested Document", then follow the prompts. It'll only take a minute or two, we promise!

There's no need to freestyle here. We don't need any extra or supporting documents. Simply follow the prompts and click submit.

Alternatively...

2) Other Documents?

Perhaps you have a valid Agricultural Exemption certificate that you'd like to submit instead, or a Resale Certificate. Or maybe you're a 501(c)(3). Or you're simply more comfortable filling out the form by hand, then uploading a scan of the document. Not a problem! Just be sure to sign and date your document. Otherwise we'll have to go through all this again.

You did it! Now sit tight.

3) This is almost over.

After you've submitted your certificate, you'll be taken to this page. As you can see, the certificate is marked as "pending." No further action is required at this time. We'll review your certificate within 48 hours (it's usually much faster than that).

Thank goodness this is finally over

4) Success!

You'll receive this email when your certificate has been reviewed and validated, and your Wholesale Company account at Farmer Bailey is officially tax-exempt! Unfortunately we can't customize this email, otherwise it would be much more personable and charming. If you continue to see sales tax applied at checkout, it means that your certificate is expired or that you've logged into Farmer Bailey using a different email address.

You can do this! And we're here to help. Email us at info@farmerbailey.com for assistance, anytime.

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