When should I use a REV-1220 PA Exemption Certificate?

Exemption certificates are required to substantiate all tax exempt sales, except vehicles. The purchaser gives the completed form to the seller when claiming an exemption on Sales Tax. Properly completed exemption certificates provide a valid reason for the exemption and are accepted in good faith to relieve the vendor from the collection of tax.

• the property or service will be resold or rented in the ordinary course of business.
• the property or service is being directly used in manufacturing, mining, dairying, processing, farming and/or shipbuilding;
• the property or service will be used directly and predominately by purchaser performing a public utility service;
• the purchaser is a government entity, instrumentality or political subdivision; municipal authority; cooperative Agricultural Association; electric cooperative; credit union;
• the purchaser is located in Keystone Opportunity Zone or Expanded Zone and has been approved under the KOZ regulations.
• the purchaser is providing goods and services under a construction contract with an exempt entity: a charitable organization, government entity, or a firm in designated KOZ;
• the purchaser is a religious organization, volunteer fireman's organization, Nonprofit educational institution, charitable organization, direct pay permit holder, individual holding a diplomatic identification card, school district, or tourist promotion agency.

1. The property sold or rented is not tangible personal property or a taxable service.
2. The customer is the United States or an instrumentality thereof, the Commonwealth, or a political subdivision or intrumentality of the Commonwealth.
3. The seller was required to deliver the property sold, rented, or serviced to a destination outside this Commonwealth for use outside this Commonwealth, and that the seller did, in fact, deliver the property.

There is no requirement to replace blanket exemption certificates after a certain period of time. However, because the seller or lessor is only required to retain an exemption certificate for four years from the date of the exempt sale, a vendor may periodically request another certificate. Exempt organizations may want to check with a vendor to make sure that the firm did not purge its files and continues to have a current certificate on file. Certificates should not be returned to the PA Department of Revenue.

The REV-1220 cannot be used to claim an exemption on the registration of a vehicle. To claim an exemption from tax for a motor vehicle, trailer, semi-trailer or tractor with PA Department of Transportation, Bureau of Motor Vehicles and Licensing, use Form MV-1, “Application for Certificate of Title”, for “first time” registrations and Form MV-4ST, “Vehicle Sales and Use Tax Return/Application for Registration”, for all other registrations.