The Arizona Department of Revenue (ADOR) offers different types of Transaction Privilege Tax (TPT) forms which is a tax that the state demands on a vendor for the privilege to do business. But if you are looking for tax exemptions, then Form 5000 is for you.
These exemptions are made for people who want to lower their taxes. For the TPT, it is useful to document any exemption and deductions with this form, and the process to fill it out is very simple. As long as you possess a TPT license from the ADOR, then you will be able to get the Form 5000 and obtain tax exemptions.
If you need more help to know what you need to put in the form, keep reading, as we will discuss what you should expect in it, and important details that you need to look out for.
Differentiating Form 5000 and 5000A
- 1 Differentiating Form 5000 and 5000A
- 2 Examples of tax exemptions for TPT
- 3 Steps to fill your Form 5000
While the name is very similar, you need to understand that Form 5000 and Form 5000A are not the same. The former, as we said above, is a Transaction Privilege Tax Exemption Certificate, while the latter is a Resale Certificate.
This last document any tangible purchase that was for resale and it can be used to avoid certain TPT, but it is required that the vendor has a state’s sales tax license. So, be careful when you download these forms, be specific on what you want.
Examples of tax exemptions for TPT
- Any type of personal tangible property rented
- Machinery and control equipment
- Internet and cable services
- Medical tools and prescription of drugs
- Food for consumers
- Other types of professional services
Steps to fill your Form 5000
Now, to proceed with filling your TPT form, you have to download it first. You can go to the Arizona Department of Revenue website and go to the Forms section. You will have a selection of different forms that you can get, but you want to go to TPT Forms and look for Form 5000
This is the latest version that the ADOR has released (April 12, 2020), but if you need it right now, you can click here to download it. When you have it in hand, take the time you need and start filling in this order:
A. Purchaser’s Name and Address
As the name implies, you have to put personal data of the purchaser, this includes the name, address, where he lives, email, and phone number (the last two are optional). Later you will also have to put the Vendor’s name.
B. Check Applicable Box
Next, you have to clarify the use of the certificate, in other words, if it is going to be for a single purchase, or in a period of time. Keep in mind that if you choose the latter option, the period that can be issued Form 5000 cannot be more than 12 months, unless the TPT license is valid up to date, and then it can be less than 48 months.
C. Choose one transaction type per Certificate
Depending on the type of transaction you choose, you may have to provide extra information. You can select between a business, foreign diplomat, Native American businesses, or with a US Government entity.
D. Reason for Exemption
This part is important; you have to check only one of the boxes indicating the reason why you want the exemption. If none of the reasons appeal to what you want, then use box numbers 16 and 17 to write down any other deduction or city deduction.
E. Describe the tangible personal property or service purchased or leased and its use below
Apart from what you chose in the last section, you have to describe it with every detail you have.
Finally, you have to confirm the veracity of Form 5000 by putting your full name, date, and your signature. You must read the last paragraph, as it contains information regarding the vendor and purchaser.
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