The Massachusetts ST-13 form is the Small Business Energy Exemption Certificate, designed for qualifying small businesses to claim exemption from sales tax on specific energy purchases. This form is crucial for businesses that had gross income of less than $1,000,000 in the previous year and expect to maintain that threshold. To take advantage of this exemption, complete the form and present it to your vendor for eligible purchases by clicking the button below.
The Massachusetts ST-13 form, also known as the Small Business Energy Exemption Certificate, serves a vital role for qualifying small businesses looking to save on energy costs. Designed for businesses with gross income of less than $1,000,000 in the previous year and a similar expectation for the current year, this form allows them to purchase gas, steam, electricity, and heating fuel without incurring sales tax. To utilize this exemption, businesses must have five or fewer employees and must certify that the energy purchased is solely for their own use. The form requires essential information such as the vendor's name, address, and a description of the energy being purchased. Additionally, businesses must indicate whether they are submitting a single purchase certificate or a blanket certificate for the calendar year. It's important to remember that this exemption does not apply if any portion of the energy is provided to other entities. Moreover, businesses must maintain adequate records to support their eligibility and must notify vendors if they cease to qualify. By understanding the intricacies of the ST-13 form, small business owners can effectively navigate the requirements and take advantage of potential savings on energy expenses.
Form ST-13
Small Business Energy Exemption Certificate
for Purchases On or After April 1, 2006
Rev. 2/06
Massachusetts
Department of
Revenue
Vendor’s name
Address
City/Town
State
Zip code
Description of energy being purchased (check one):
Number of employees
Gas
Steam
Electricity
Heating Fuel
I hereby certify that the energy described above is purchased solely for my own use as a qualifying small business which, during the previous calendar year, had gross income of less than $1,000,000 and which reasonably expects to have gross income of less than $1,000,000 for the current calendar year, and which has five or fewer employees. I further certify that I have records sufficient to document the eligibility of the business claiming exemption under this certificate. This certificate may not be used to claim exemption if any portion of the energy purchased is provided to or for the benefit of other entities.
Full liability is hereby assumed by the purchaser for the payment of any use tax due in the event that the purchaser does not meet all of the requirements above. This certificate shall be considered part of each order unless revoked in writing. All vendor purchase orders under this certificate shall clearly state that they represent purchases for the use of exempt small business.
Signed under the penalties of perjury.
Signature
Title
Name of company
Federal Identification number
Date
Type of certificate (check one):
Single Purchase Certificate
Blanket Certificate (for calendar year
)
This form is approved by the Commissioner of Revenue and may be reproduced.
Form ST-13 Instructions
General Information
All business entities with gross income of less than $1,000,000 for the previous calendar year and that reasonably expect to have gross income of less than $1,000,000 in the current calendar year, that have five or fewer employees are exempt from paying a sales tax on their purchases of gas, steam, electricity and heating fuel solely for their own use. A business that may not have had gross in- come during the preceding calendar year, such as a newly-formed business, may be eligible for exemption if it reasonably expects to have gross income of less than $1,000,000 for the current calen- dar year.
Any purchaser which seeks this exemption must complete Form ST-13, Small Business Energy Exemption Certificate. A signed copy of this form must be submitted to the vendor(s) in order for the small business to claim the exemption. The small business exemp- tion applies only to purchases on or after the date this certificate is signed and presented to the vendor.
Instructions to Vendors
The burden of proving that a business is entitled to the small busi- ness exemption is on the vendor unless the vendor accepts in good faith a copy of this certificate, Form ST-13.
For each sale exempt from sales tax under the small business ex- emption, vendors must keep a record of the name, address, and federal identification number of the small business claiming the ex- emption, the sales price of each sale and a copy of Form ST-13. For further information regarding the requirements for retaining rec- ords, see Massachusetts Regulation 830 CMR 62C.25.1.
Instructions to Purchasers
A purchaser ordinarily must present this certificate to the vendor for each calendar year on or before the date of its first purchase of taxable fuel in each new calendar year. If a purchaser presents the certificate after this date, the certificate only applies to purchases made on or after the date the certificate is signed and presented to the vendor.
For purposes of this exemption, an “employee” includes any part- ner, owner or officer of the business who normally works for the business for thirty hours or more per week. Unless a taxpayer dem- onstrates otherwise, the Commissioner of Revenue will presume that any partner, owner or officer who regularly works for a business normally works for the business for thirty hours or more per week.
“Employee” also includes any other individual who is an employee as defined for federal tax withholding purposes under Internal Revenue Code (I.R.C.) Sec. 3401 and who normally works for the business for thirty hours per week or more and who is hired for a period of five months or more.
In determining number or employees, a business entity must con- sider all employees, not just employees at a particular location of the business.
If a business is a member of an affiliated group, as defined in I.R.C. Sec. 1504, all employees of all members of the group must be counted to determine whether the entire affiliated group qualifies as a small business.
The business must maintain adequate weekly employee time and wage records to substantiate any claim to this exemption.
If at any time a business that has claimed a small business exemp- tion under this certificate ceases to qualify for exemption, it must notify the vendor in writing.
A purchaser is liable for the payment of any use tax in the event that the purchaser is not eligible for the exemption.
For further information about the Small Business Energy Exemp- tion, see Massachusetts Regulation 830 CMR 64H.6.11; Technical Information Release 06-2.
Warning: Willful misuse of this certificate may result in criminal tax evasion penalties of up to one year in prison and $10,000 ($50,000 for corporations) in fines.
If you have any questions about the acceptance or use of this cer- tificate, please contact the Massachusetts Department of Revenue at (617) 887-MDOR.
To complete the Massachusetts ST-13 form, you will need to provide specific information about your business and the energy purchases you are making. After filling out the form, submit it to your vendor to claim the sales tax exemption. Make sure to keep a copy for your records.
The Massachusetts ST-13 form, also known as the Small Business Energy Exemption Certificate, allows qualifying small businesses to purchase certain types of energy without paying sales tax. This exemption is available for businesses that have gross income of less than $1,000,000 and five or fewer employees.
To qualify for the ST-13 exemption, a business must meet the following criteria:
The ST-13 form covers the purchase of the following types of energy:
To complete the ST-13 form, you will need to provide your business name, address, and federal identification number. Additionally, you must check the type of energy being purchased and certify that the energy will be used solely for your own business. Finally, sign and date the form.
Yes, you must present a signed copy of the ST-13 form to your vendor to claim the exemption. This form must be submitted before your first purchase of taxable energy for the calendar year.
If you present the ST-13 form after making a purchase, the exemption will only apply to purchases made on or after the date you sign and present the form to the vendor. Previous purchases will not be exempt.
Vendors must maintain records of the following for each exempt sale:
If your business ceases to meet the qualifications for the ST-13 exemption, you must notify your vendor in writing. This ensures that you are not incorrectly claiming the exemption.
Willful misuse of the ST-13 certificate can result in serious consequences, including criminal tax evasion penalties. These penalties may include up to one year in prison and fines of up to $10,000 for individuals or $50,000 for corporations.
For further information regarding the ST-13 form and the Small Business Energy Exemption, you can contact the Massachusetts Department of Revenue at (617) 887-MDOR or visit their official website for detailed guidance.
Failing to provide accurate vendor information. Ensure the vendor’s name, address, city/town, state, and zip code are correct.
Not checking the appropriate energy type. Select one option from gas, steam, electricity, or heating fuel.
Misreporting the number of employees. Count all employees accurately, including partners and officers who work at least thirty hours per week.
Failing to certify that the business qualifies. The form requires a declaration that the business had gross income of less than $1,000,000 in the previous year and expects the same for the current year.
Not maintaining adequate records. Keep thorough documentation to support the exemption claim, including employee time and wage records.
Using the certificate for ineligible purchases. The exemption only applies if the energy is for the business's own use, not for other entities.
Submitting the form after the deadline. Present the certificate to the vendor before the first purchase of taxable fuel in the new calendar year.
Not signing the form. A signature is required to validate the certificate and certify the information provided is accurate.
Ignoring the penalties for misuse. Understand that willful misuse can lead to severe penalties, including fines and imprisonment.
The Massachusetts Form ST-13, known as the Small Business Energy Exemption Certificate, is crucial for qualifying small businesses seeking to exempt certain energy purchases from sales tax. Alongside this form, several other documents and forms often play a role in the exemption process or related business operations. Understanding these documents can help ensure compliance and streamline the process for small business owners.
Each of these forms serves a specific purpose in the context of business operations and tax compliance. Familiarity with these documents can empower small business owners to navigate the complexities of tax exemptions and maintain accurate records, ultimately supporting their growth and sustainability.
The Massachusetts Form ST-2 is a Sales Tax Resale Certificate. Similar to Form ST-13, it allows businesses to purchase items without paying sales tax, provided those items are intended for resale. The ST-2 form requires the buyer to certify that the purchased goods will not be used for personal consumption but rather will be sold in the regular course of business. Both forms require the submission of a signed certificate to the vendor at the time of purchase, ensuring that the vendor has documentation to support the tax-exempt sale.
Another comparable document is the Massachusetts Form ST-5, which is an Exempt Use Certificate. This form is utilized by organizations that qualify for tax-exempt status under specific criteria, such as charitable organizations or government entities. Like Form ST-13, the ST-5 certifies that the purchases made will be used in a manner that qualifies for exemption from sales tax. Both forms emphasize the importance of maintaining proper records to substantiate the exemption claims made by the purchaser.
The Massachusetts Form ST-12 is a Direct Payment Permit. This document allows certain businesses to pay sales tax directly to the state rather than to the vendor at the time of purchase. Similar to Form ST-13, it is intended for businesses that meet specific criteria, such as having a certain volume of taxable purchases. Both forms require businesses to demonstrate their eligibility to receive tax benefits, and they must keep detailed records to support their claims.
Form ST-4, the Sales Tax Exempt Certificate for Nonprofit Organizations, is another document that shares similarities with Form ST-13. Nonprofit organizations can use ST-4 to make tax-exempt purchases related to their charitable activities. Like the ST-13, this form requires the organization to affirm that the purchases are for exempt purposes. Both forms necessitate that the vendor retains a copy of the certificate to validate the tax-exempt status of the transaction.
The Form ST-9 is a Certificate of Exemption for Certain Purchases, which is used by specific entities, such as educational institutions or religious organizations, to make tax-exempt purchases. This form is similar to Form ST-13 in that it requires the purchaser to certify their eligibility for exemption based on their organizational status. Both forms help ensure that vendors can confidently process tax-exempt sales while adhering to state regulations.
Form ST-14, the Sales Tax Exemption Certificate for Government Entities, is specifically designed for federal, state, and local government purchases. Like the ST-13, it confirms that the purchase is made for governmental purposes and is exempt from sales tax. Both documents require the purchaser to provide relevant identification information, ensuring that vendors can verify the exemption status of the buyer at the time of sale.
The Massachusetts Form ST-15 is a Certificate of Exemption for Purchases by Certain Organizations. This form is utilized by organizations that have been granted exemption status under specific laws. Similar to Form ST-13, it requires the organization to certify that the purchases are for exempt purposes. Both forms emphasize the importance of compliance with state regulations and maintaining accurate records to support tax-exempt transactions.
Finally, the Massachusetts Form ST-18 is an Exempt Purchaser Certificate for Certain Purchases. This document is used by specific exempt organizations to claim exemption from sales tax on eligible purchases. Like Form ST-13, it requires the purchaser to certify their exempt status and provides a framework for vendors to validate the exemption. Both forms aim to facilitate tax-exempt purchases while ensuring compliance with state tax laws.
When filling out the Massachusetts ST-13 form, it’s important to follow certain guidelines to ensure compliance and avoid issues. Here are four things you should and shouldn’t do:
This is not true. Even newly-formed businesses can qualify for the exemption if they expect to have gross income of less than $1,000,000 in the current calendar year.
The ST-13 form is specifically for small businesses that had gross income of less than $1,000,000 in the previous year and expect to do the same in the current year.
The exemption only covers purchases of gas, steam, electricity, and heating fuel intended for the business's own use.
This is incorrect. The exemption only applies to purchases made on or after the date the certificate is signed and presented to the vendor.
Vendors must maintain records of the small business's name, address, federal identification number, sales price, and a copy of the ST-13 form for each exempt sale.
The number of employees is crucial. A business must have five or fewer employees to qualify for the exemption, regardless of its income level.
Willful misuse can lead to severe penalties, including criminal charges and substantial fines. It is essential to use the form correctly to avoid legal issues.
Here are some important points to keep in mind when filling out and using the Massachusetts ST-13 form: