FAQ: US & Canadian Sales Tax Exemption for Container Purchases

For purchases in the United States and Canada, xChange follows standard procedures to comply with local sales tax regulations. This includes documentation requirements for buyers who qualify for a sales tax exemption. Below are answers to common questions about how this process works.

Do I need to pay sales tax when buying containers through xChange?

If you’re purchasing containers in the US or Canada for resale, you may qualify for a sales tax exemption under local tax laws. To apply this exemption, you must be a registered reseller and provide valid documentation upon request.

How is this reflected in my invoice?

All invoices for container purchases in the US and Canada include the following clause:

Sales Tax Exemption Notice (US/Canada): By accepting this invoice, the buyer confirms that they are purchasing the goods as a registered reseller under applicable US and/or Canadian sales tax regulations. The buyer agrees to provide valid resale exemption documentation upon request. Failure to do so may result in the retroactive charging of applicable taxes.

This applies to both standard xChange invoices and xCF deal invoices.

What are my obligations under xChange’s Terms & Conditions?

Our Terms of Use include the following under Clause 7.5:

• Buyers in the US or Canada confirm they are resellers purchasing goods for resale in the ordinary course of business.
• Buyers agree to provide valid resale or exemption certificates upon request.
• If such documentation is missing or invalid, xChange reserves the right to charge applicable sales or use taxes retroactively.
   

What does the Sales Contract say?

Under Clause 3.b of our Standard Sales Contract:

• The buyer certifies reseller status for the purposes of US or Canadian sales tax law.
• The buyer agrees to provide valid resale exemption certificates when requested.
• If not provided, xChange or the seller may charge applicable taxes retroactively, including any penalties or interest imposed by tax authorities.
   

What do I need to provide?

To ensure compliance, please have the following ready:

• A valid resale or exemption certificate issued by the relevant US state or Canadian province.
• Timely responses to our requests for documentation, typically shared via DocuSign.
   

What if I don’t have a certificate?

If you don’t currently have a resale or exemption certificate, no problem — xChange can help.

As part of our service, we will prepare the necessary documentation for you based on your business and jurisdiction. You’ll simply need to review and sign the form via DocuSign.

This is one of the ways we support our customers in conducting transactions that are fully compliant with local tax laws—saving you time and reducing legal risk.

In Canada, sales tax requirements differ by province. While certain transactions may be exempt from Goods and Services Tax (GST), Harmonized Sales Tax (HST), or Provincial Sales Tax (PST), others may be subject to these taxes. Even if sales tax is charged at the point of purchase, you may be eligible to claim input tax credits or refunds, depending on your business activities and registration status.

Please note, that the information provided by xChange, including any assistance with preparing resale or exemption certificates, is intended solely for general informational purposes and does not constitute legal or tax advice. Tax laws and regulations vary across different jurisdictions and are subject to change. We strongly recommend that you consult with a qualified tax professional or accountant to understand your specific tax obligations and to ensure compliance with applicable laws.

If you need assistance, please reach out to your Account Manager or contact service@container-xchange.com.

This FAQ is intended to help you stay compliant while buying through xChange. We're here to support you every step of the way.