Sales and Purchases



Taxable goods or services sold by the federal government are subject to tax, unless an exemption applies. 

Customers who purchase taxable goods or services from the federal government must report and pay use tax if sales tax was not paid at the time of purchase.


Purchases by the federal government, its agencies, and instrumentalities are not taxable.

To be exempt from tax, purchases must be billed to, and paid for directly by, the federal government. The buyer must provide Form ST3, Certificate of Exemption, or proof of direct billing and payment.

Examples of acceptable proof include:

Note: Purchases by employees are taxable even when reimbursed by the federal government.