Sales tax is a destination tax in the United States. The ship-to state on the order determines the sales tax rate. Alaska, Delaware, Montana, New Hampshire, and Oregon do not levy a sales tax. Cisco is registered in all other states and in Puerto Rico. Because of Cisco’s legal obligation to the states in which it is registered, it must collect sale tax on all customer orders unless it has proper documentation exempting the customer from sales tax, or unless the product or service sold is exempt.
(Please note that the city of Juneau, Alaska imposes a city tax rate. Cisco is registered with the city of Juneau and is required to charge the Juneau city tax on orders delivered into Juneau, Alaska.)
Required Documentation for Sales Tax Exemption
For Cisco to exclude sales tax from an order, it must have one of the following on file from the customer:
- A resale certificate
- An exemption certificate
- A direct pay permit
Business licenses or permits are not considered acceptable documentation to exempt purchases from sales tax.
Resale Certificate
A resale certificate is an agreement between Cisco and its customer (the bill-to name on the invoice) stating:
- Customer’s name and address
- Cisco's name and address
- Customer's retailer identification number
- Purpose for the purchases from Cisco
- Types of items the customer will purchase
Most states have their own resale certificate format. Other states will accept a multijurisdiction form that requests the same information but lists multiple states.
Exemption Certificate
Some states will issue exemption certificates to organizations that qualify as exempt from taxes. A copy of the exemption certificate is all Cisco needs from a qualifying customer, with the exception of customers in Massachusetts. Sometimes a state will issue a formal letter to the qualifying organization. The letter usually references an exemption identification number and an expiration date. Cisco may accept copies of these letters. Massachusetts requires an additional form to be submitted along with a copy of the exemption certificate.
Direct Pay Permits
Some states issue direct pay permits to various organizations. The permit is an agreement between the state and that organization allowing the organization to remit all sales tax directly to the state. The organization’s suppliers do not need to collect the sales tax. A copy of the direct pay permit is required to exclude the tax on orders.
Obtaining Resale and Exemption Certificates
Cisco provides printable state-specific exemption and resale certificates.
Submit your completed certificates to Cisco either by fax to 408 526-7111, email attachment to sales_use_tax@cisco.com or by mail to:
Cisco
Attn: Tax Department
170 West Tasman
San Jose, CA 95134
Please include your purchase order number and sales order number. Contact your Cisco customer service representative if you need assistance.
