Billing & Payments

Tax Information

Finance Team
5 min read
Last updated: 1/15/2025
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tax-exempt
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Tax Information

Understanding taxes on your Source Parts purchases helps ensure compliance and may save you money if you qualify for exemptions.

Sales Tax Overview

Source Parts collects sales tax based on:

  • Your shipping destination
  • Local and state tax rates
  • Product categories
  • Your tax exemption status

Tax Exemptions

You may be exempt from sales tax if you are:

  • Reseller with valid resale certificate
  • Non-profit organization (501(c)(3))
  • Government agency
  • Educational institution
  • Purchasing for manufacturing/production

Submitting Tax Exemption Documents

  1. Log in to your account
  2. Go to AccountTax Settings
  3. Click Add Tax Exemption
  4. Select exemption type
  5. Upload your certificate (PDF or image)
  6. Submit for verification

Required Documents by Type

  • Resale - State-issued resale certificate
  • Non-profit - IRS determination letter + state exemption
  • Government - Government ID + purchase authorization
  • Manufacturing - Manufacturing exemption certificate

Multi-State Exemptions

If you ship to multiple states:

  • Upload exemption certificates for each state
  • Use the Multistate Tax Commission (MTC) Uniform Sales & Use Tax Certificate for participating states
  • Exemptions must be renewed periodically based on state requirements

International Orders

For orders shipped outside the United States:

  • US sales tax does not apply
  • Import duties and VAT may be charged by your country
  • You are responsible for customs and import fees
  • Shipping carrier may collect duties on delivery (DDP options available)

Tax on Your Invoice

Your invoice shows:

  • Subtotal (product costs)
  • Shipping charges
  • Tax jurisdiction(s)
  • Tax rate(s) applied
  • Total tax amount
  • Grand total

💡 Pro Tip

Keep your exemption certificates up to date. Most states require renewal every 1-5 years. We'll notify you before your certificates expire.

Tax Reports

Download tax reports for your records:

  • Annual tax summary
  • Quarterly reports
  • State-by-state breakdown
  • CSV export for accounting software

Questions?

For tax-related inquiries, contact tax@source.parts

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Tax Information | Source Parts Knowledge Base