What types of documentation are required to support a deduction from gross receipts tax?
The nontaxable transaction certificate (NTTC) is the only acceptable proof of certain deductions. The buyer obtains an NTTC from TRD to give to a seller. The seller then may deduct those receipts when determining taxable gross receipts. In practice, this means the buyer can buy goods and services free of the gross receipts tax that is usually passed along by the seller. The seller must accept an NTTC in good faith, reasonably confident that the buyer executing the NTTC will use the property or service in the manner stated on the NTTC. The seller needs only one NTTC from each buyer to cover all transactions of the same type with that buyer. New Mexico businesses that sell to out-of-state buyers may obtain the out-of-state buyer certificate, NTTC-OSB. Unlike other NTTCs that the buyer obtains from TRD, the NTTC-OSB is obtained by the seller. The New Mexico seller completes Form ACD-31050, Application for Nontaxable Transaction Certificates (NTTCs) , and the seller then provides the NTTC-
