Walmart Tax Free Program (Your Complete Guide)
Did you know that if you’re a small business owner, part of a nonprofit organization, or a faculty member at a university, you might be able to make tax-free purchases?
Retail giant chain Walmart operates a tax-free program for items in its stores, but it can be a bit overwhelming if you’re just getting started, or if you’re not even sure if you qualify.
Here’s your complete guide to the Walmart tax exemption program and how it can benefit you!
What is the Walmart Tax Exemption Program?
Walmart’s tax-exempt program allows tax-exempt organizations to register on its website or in person and shop in-store or online without paying sales tax. Tax-exempt organizations get a Walmart tax-exempt card at the store, which they show to the cashier before checking out.
To learn more about whether your organization is eligible for tax-free shopping at Walmart, how to enroll in Walmart’s tax-free program, and more, read on!
Who can participate in the Walmart Tax Exemption Program?
You or your organization may qualify for tax-exempt status and thus benefit from Walmart’s Tax Exemption Program (or WTEP) without even realizing it.
There are seven types of organizations that qualify for the sales tax exemption. These include:
- dealer
- Charity
- religious group
- educational institution
- government agency
- the farmer
- Different kinds
Resellers are important to any of you small business owners.
If you buy wholesale from Walmart (and then sell it), you don’t pay sales tax on your purchases, increasing your profitability.
This is one way our government encourages small business activity.
So if you see that you and your organization fall into any of these categories, it’s worth looking into.
Plus, Walmart seems to be everywhere, and the convenience of taking advantage of the retailer’s tax-exempt status cannot be overemphasized.
Your first step is to obtain state approval as a tax-exempt organization.
(If you work at a school or university, charity or religious group, they may already have the paperwork for you.)
Next, you’ll need to find your state’s tax exemption application, gather all the necessary documents, turn in all of them, and wait to see if you’re approved.
If so, you can apply for Walmart’s tax-exempt program.
How do you get a Walmart Tax Exemption Certificate?
To shop as part of WTEP, you will need to obtain a tax exemption certificate from Walmart.
This is done differently online and in-store, so let’s go through each process.
online
Obtaining WTEP’s tax-exempt certificate is a bit more complicated than obtaining it in person, but it’s not terribly complicated.
You should plan to apply for WTEP at least a few days before you start shopping, as the approval process takes time.
You’ll start by creating a Walmart.com account with an organization-based email (not personal) and include the primary shopper’s name.
In addition, you will need to have the tax exemption documents required by your state. Walmart has a handy list here.
After submitting everything, you just have to wait for Walmart to review the application on its end.
You’ll receive confirmation of either approval within a few days at the most, at which point you can start shopping right away.
For online instructions from Walmart, check out their WTEP registration page.
in store
For in-store certification, you will need to bring all necessary state-issued and organization-related documents.
Once inside, go to the Customer Service Desk where an employee will review your documents and, if approved, will provide you with a WTEP card.
Obviously, the in-store way is much faster, but if you want to shop online and in-store, you’ll have to apply separately.
How do you use the Walmart Tax Free program with your store?
To use your WTEP card at a Walmart store, you must first make sure you have a WTEP card issued by a store in the same state.
Because laws and regulations vary from state to state, you can’t use your Oklahoma card in places like California.
To get a card from that state, you’ll also need documents proving you’re tax-exempt in that state.
You can collect your purchases as usual, but if you make any personal purchases, these should be kept separate and paid for separately.
When you get to the cash register, be sure to show them your WTEP card before they start ringing the bell.
After the sale is complete, you should review your receipt to make sure you have not been improperly taxed.
If yes, you may want to speak to a manager to rectify the situation.
How Do You Use the Walmart Tax Free Program Online?
As mentioned above, as part of WTEP, you must create a Walmart.com account specifically for shopping.
Using this account, you can add items to your cart and check out normally. Sales tax should be automatically eliminated.
What can’t I buy with the Walmart Tax Free Program?
Not everything Walmart offers is tax-free, even if you participate in WTEP.
Some obvious items that cannot be purchased as part of the scheme include alcohol and cigarettes.
Additionally, pharmacy services, Vudu purchases, and Apple products are not exempt.
Tire and car services and photo printing may apply, but manual refunds are required (you request a refund after payment).
Items participating in the Walmart Marketplace program are also not exempt if you shop online, with some exceptions (see here).
This last point is important: if you are a reseller, you should not purchase items for personal or professional consumption as part of your WTEP.
Only items you plan to resell are eligible for WTEP.
If you want to learn more about Walmart’s services and programs, you can also check out our related posts on filing taxes at Walmart, Walmart’s college program, and whether Walmart pays taxes.
in conclusion
Walmart’s tax-free program is a convenient way for approved organizations and individuals who shop on their behalf to make tax-free purchases.
While eligibility varies by state, WTEP is a straightforward, convenient and beneficial way to take advantage of tax-free benefits from the world’s largest retailers.