skip navigation

Search Help
Navigation Help

Tax Map Index
ABCDEFGHI
JKLMNOPQR
STUVWXYZ#

International
Tax Topic Index

Affordable Care Act
Tax Topic Index

FAQs
Forms
Publications
Tax Topics

Comments
About Tax Map

IRS.gov Website
Publication 510
taxmap/pubs/p510-032.htm#en_us_publink1000117213

Exemptions(p30)

rule
The following sales by the manufacturer are exempt from the manufacturers tax.
taxmap/pubs/p510-032.htm#en_us_publink1000117214

Requirements for Exempt Sales(p30)

rule
The following requirements must be met for a sale to be exempt from the manufacturers tax.
taxmap/pubs/p510-032.htm#en_us_publink1000117215

Registration requirements.(p31)

rule
The manufacturer, first purchaser, and second purchaser in the case of resales must be registered. See the Form 637 instructions for more information.
taxmap/pubs/p510-032.htm#en_us_publink1000117216
Exceptions to registration requirements.(p31)
Registration is not required for:
taxmap/pubs/p510-032.htm#en_us_publink1000117217

Certification requirement.(p31)

rule
If the purchaser is required to be registered, the purchaser must give the manufacturer its registration number and certify the exempt purpose for which the article will be used. The information must be in writing and may be noted on the purchase order or other document furnished by the purchaser to the seller in connection with the sale.
For a sale to a state or local government, an exemption certificate must be signed by an officer or employee authorized by the state or local government. See Regulations section 48.4221-5(c) for the certificate requirements.
For sales for use as supplies for vessels and aircraft, if the manufacturer and purchaser are not registered, the owner or agent of the vessel must provide an exemption certificate to the manufacturer before or at the time of sale. See Regulations section 48.4221-4(d) for the certificate requirements.
taxmap/pubs/p510-032.htm#en_us_publink1000117218

Proof of export requirement.(p31)

rule
Within 6 months of the date of sale or shipment by the manufacturer, whichever is earlier, the manufacturer must receive proof of exportation. See Regulations section 48.4221-3(d) for evidence that qualifies as proof of exportation.
taxmap/pubs/p510-032.htm#en_us_publink1000117219

Proof of resale for further manufacture requirement.(p31)

rule
Within 6 months of the date of sale or shipment by the manufacturer, whichever is earlier, the manufacturer must receive proof that the article has been resold for use in further manufacture. See Regulations section 48.4221-2(c) for evidence that qualifies as proof of resale.
taxmap/pubs/p510-032.htm#en_us_publink1000117220

Information to be furnished to purchaser.(p31)

rule
The manufacturer must indicate to the purchaser that the articles normally would be subject to tax and are being sold tax free for an exempt purpose because the purchaser has provided the required certificate.
taxmap/pubs/p510-032.htm#en_us_publink1000117221

Credits or Refunds(p31)

rule
The manufacturer may be eligible to obtain a credit or refund of the manufacturers tax for certain uses, sales, exports, and price readjustments. The claim must set forth in detail the facts upon which the claim is based.
taxmap/pubs/p510-032.htm#en_us_publink1000117222

Uses, sales, and exports.(p31)

rule
A credit or refund (without interest) of the manufacturers taxes may be allowable if a tax-paid article is, by any person:
taxmap/pubs/p510-032.htm#en_us_publink1000117223

Export.(p31)

rule
If a tax-paid article is exported, the exporter or shipper may claim a credit or refund if the manufacturer waives its right to claim the credit or refund. In the case of a tax-paid article used to make another taxable article, the subsequent manufacturer may claim the credit or refund.
taxmap/pubs/p510-032.htm#en_us_publink1000117224

Price readjustments.(p31)

rule
In addition, a credit or refund (without interest) may be allowable for a tax-paid article for which the price is readjusted by reason of return or repossession of the article or a bona fide discount, rebate, or allowance for taxes based on price.
taxmap/pubs/p510-032.htm#en_us_publink1000117225

Conditions to allowance.(p31)

rule
To claim a credit or refund in the case of export; supplies for vessels; or sales to a state or local government, nonprofit educational organization, or qualified blood collector organization; the person who paid the tax must certify on the claim that one of the following applies and that the claimant has the required supporting information. The ultimate vendor generally is the seller making the sale that gives rise to the overpayment of tax.
taxmap/pubs/p510-032.htm#en_us_publink1000117226
Claim for further manufacture.(p31)
To claim a credit or refund for further manufacture, the claimant must include a statement that contains the following.
For claims by the exporter or shipper, the claim must contain the proof of export and a statement signed by the person that paid the tax waiving the right to claim a credit or refund. The statement must include the amount of tax paid, the date of payment, and the office to which it was paid.
taxmap/pubs/p510-032.htm#en_us_publink1000117227
Claim for price readjustment.(p31)
To claim a credit or refund for a price readjustment, the person who paid the tax must include with the claim, a statement that contains the following.