How do I use the MTC (multijurisdiction) form for sales tax exemption?

Written by

Sabrina Barnes

Many states accept out-of-state resale exemptions if you have not yet met nexus or registration requirements in that specific state. By using the MTC form, you can claim an exemption for multiple states by indicating your out-of-state sales tax registration number next to each state.

Note that some states do not accept out-of-state resale certificates. For these states, you must use a state-specific (in-state) registration number (if you are registered with the particular state). As of the date of this article, the following states listed on the MTC form would not accept out-of-state resale certificates:

California
Florida
Hawaii
Illinois
Maryland
Pennsylvania
Washington

Note

Do not enter out-of-state registration numbers next to these states on the MTC form and when uploading it via Exemption Certificate Wizard, as this would invalidate your resale certificate.

Follow the same steps as for submitting a resale certificate described in this article to upload the MTC form to your Printify account.

Example 1: Blank form

USA Sales & use tax resale certificate - Multijurisdictional blank form example.

Color-coded guidelines for state ID numbers:

Red fields: Accept only state-specific (in-state) ID numbers.
Green fields: Accept out-of-state ID numbers.

Example 2: Single registration

MTC form filled out with a single out-of-state registration number from California.

USA Sales & use tax resale certificate - Multijurisdictional form filled out with a single out-of-state registration number from California.

Scenario: "Cookies and Tea LLC" is a California-registered business with a sales tax license (or seller’s permit) that resells print-on-demand products.

They use their California sales tax ID for the 29 other states that accept out-of-state numbers.
Result: They are exempt in 30 states while registered in only 1.

Example 3: Multiple registrations

MTC form filled out with all out-of-state registration numbers.

USA Sales & use tax resale certificate - Multijurisdictional form filled out with all out-of-state registration numbers.

Scenario: "Cookies and Tea LLC" has nexus in 8 specific states that do not accept out-of-state IDs.

They enter their state-specific IDs for those 8 states.
They use their California ID for the remaining 29 states.
Result: They are exempt in 37 states while registered in 8.

Disclaimer

The company may apply the above approach only if it is not required to register for sales tax purposes in states that accept out-of-state numbers. The company should monitor its revenue and number of units sold for economic nexus thresholds, as well as keep an eye on other possible nexus criteria (such as hiring employees from a certain state or establishing any physical location).

If a nexus is created, the company is required to register for sales tax purposes in the state. If the company registers in a new state, the company submits a revised MTC form to the vendor with a state-specific (native) ID number for the registered state.

Note

The examples are provided for illustrative purposes only. Always consult a tax professional to verify which forms apply to your business.