Direct Pay Permit for Sales and Use Taxes on Direct Mail
General Information
A direct pay permit for direct mail allows a business to make all of its purchases of direct mail without payment of sales and use tax to vendors and authorizes the vendors not to collect any tax on a sale to a permit holder. A direct pay permit issued for direct mail does not apply to the purchase of any tangible personal property or service other than the purchase of direct mail.
A holder of a direct pay permit for sales and use taxes for direct mail must file applicable tax returns, remit the tax due, and maintain records that clearly reflect the tax liability.
What is Direct Mail?
Direct mail is printed material delivered or distributed by the United States Postal Service or other delivery service to a mass audience or to addresses on a mailing list provided by the purchaser or at the direction of the purchaser when the cost of the items is not billed directly to the recipients.
Direct mail includes tangible personal property supplied directly or indirectly by the purchaser to the direct mail seller for inclusion in the package containing the printed material.
Direct mail does not include multiple items of printed material delivered to a single address.
Application Process
A business may request permission from the Secretary of Revenue to discharge its sales and use tax liability on direct mail directly to the Department by completing Form E-595C, Application for Direct Pay Permit, Sales and Use Taxes for Direct Mail. The authorization by the Secretary is conditioned upon full compliance with the provisions of the Sales and Use Tax Law and timely payment of all taxes due.