Exemption Certificates Under Scrutiny: Five Documentation Failures That Create Sales Tax Exposure
Deborah Dingess
August 6, 2026
Exemption Certificates Under Scrutiny: Five Documentation Failures That Create Sales Tax Exposure Exemption certificates are often treated as routine paperwork: a customer claims an exemption, the seller collects a form, and the transaction proceeds without tax. During a sales tax audit, however, that form may be the primary evidence separating a valid exempt sale from an assessment. The issue is increasingly important in 2026 as businesses expand into new states, automate customer onboarding, and rely on tax engines to suppress
