Sales Tax Exemption Certificates

Frequently Asked Questions

1. Why did DigiKey mail me a sales tax exemption certificate?

Most states require sales tax (or use tax) to be paid on the purchase of personal property unless the purchase is exempt. Sales tax is added to the purchase price of the products and remitted to the state by the seller; use tax is reported and remitted to the state by the buyer. In each case, the liability is the same. DigiKey is collecting sales tax from our customers unless we have a properly executed exemption certificate.

2. Why is DigiKey required to collect sales tax in my state?

Most jurisdictions require businesses to collect sales tax on “taxable sales” if they have “nexus” in that jurisdiction. DigiKey meets the nexus requirements in most jurisdictions and is therefore required to collect tax unless a properly executed exemption certificate is provided.

3. What happens if I do not return a sales tax exemption certificate to DigiKey?

In this case, DigiKey will be required to collect sales tax on your purchases and remit the tax to your state.

4. If I email in the exemption certificate, do I also have to mail it?

No. As long as the form is signed it can be emailed and does not have to be mailed.

5. I sent in a tax exemption/resale certificate, but I am still being charged tax. Did you receive it?

Your submitted certificate will need to be reviewed by our team. Please note, you may be charged tax on your first order. If your certificate is approved, any tax charged will be credited back.
If you aren't sure if the certificate was received, please upload it or resend it to salestax@digikey.com.

6. What type of purchases are taxable and/or am I charged sales tax if the purchase is for resale?

Generally, products you purchase and use or consume are taxable, but products you purchase for resale or use to manufacture goods that will be resold are not taxable.

To understand your state’s specific sales tax law we recommend a web search and/or consult your tax advisor. The following link on the web may be of assistance: https://www.taxadmin.org/state-tax-forms

7. I think I was sent the wrong form.

Some states have several sales tax exemption certificate forms. You may want to confirm that you are using the appropriate form through a web search and/or by consulting your tax advisor. The following link on the web may be of assistance: https://www.taxadmin.org/state-tax-forms

8. Some of the products I buy from DigiKey should be taxed and some should not be taxed. How can I choose which items are taxed and not taxed?

If a properly executed sales tax exemption certificate has been provided to DigiKey, sales tax will not be charged on any purchases. It is your responsibility to identify your total taxable purchases each month and remit any sales/use tax due directly to your state. If an order you place with DigiKey needs to be charged tax, please make a note on your web order, or make the sales representative aware that tax needs to be collected.

9. I have received more than one request for a sales tax exemption certificate.

Requests are emailed to newly added DigiKey customers. If you have several account locations with DigiKey, a request may have been generated for each location. It is also possible that we have inadvertently assigned you more than one customer number. If a sales tax exemption should apply to your DigiKey purchases, the safest response would be to return a certificate for each request.

10. If I am tax exempt why am I being charged tax when I drop ship to another state?

Sales tax collection is based on the address that you are shipping to. The tax collected will be based on the ship to location's tax requirements. In order not to be charged the tax you would need to have a tax exempt certificate on file for the state you are shipping to.

11. Federal Agencies

The Federal Government and Federal Agencies are exempt from paying state sales taxes. Contact salestax@digikey.com with any questions.

DigiKey Sales Tax Contact Information

• Telephone: 1-800-344-4539
• Email: salestax@digikey.com
• Mail: Digi-Key Electronics
  701 Brooks Avenue South
  PO Box 677
  Thief River Falls MN 56701-0677
  USA