Direct pay permit Clause Samples

A direct pay permit clause allows a purchaser to pay sales or use tax directly to the state, rather than having the seller collect and remit the tax. In practice, the buyer obtains a permit from the tax authority and provides it to the seller, who then does not charge sales tax on the transaction. This arrangement is commonly used by businesses that make frequent taxable purchases and want to streamline tax reporting. The core function of this clause is to simplify tax compliance and reduce administrative burden for both buyers and sellers.