Section 280-RICR-20-70-19.8 - Use of Resale or Exemption CertificateA. In making exempt purchases for use in production, a manufacturer should furnish vendors with either a Resale Certificate, a Manufacturer's Exemption Certificate, or any certificate or statement that contains the required information and signature. However, these certificates should not be utilized in making purchases for use in administration or distribution, as defined above, and a tax must be paid on purchases for these purposes.B. The acceptance of a properly executed certificate relieves the vendor from the burden of proof.C. If a manufacturer, processor or convertor gives an exemption certificate and thereafter consumes some of the property purchased for purposes other than production, he or she must report, as taxable receipts, the cost price of the property consumed in administration or distribution and pay the tax thereon.D. In order that the Division of Taxation may verify a vendor's nontaxable sales upon audit, it is necessary that vendors retain executed exemption certificates. If a vendor lists nontaxable sales or services for which he has no exemption certificates, the Division of Taxation will presume such sales are taxable and make an assessment of tax against the vendor.E. When it is not possible at the time tangible personal property or services are purchased to know how they will be used, the manufacturer, processor or convertor may issue a certificate to his vendor and may purchase without the tax. In such a case the purchaser must report and pay directly to the Division of Taxation any tax that is due based on nonexempt use made of the purchases.280 R.I. Code R. § 280-RICR-20-70-19.8