A direct pay permit (DPP) for direct mail allows a business to make all of its purchases of direct mail without payment of sales and use tax to vendors. A business with a direct pay permit assumes responsibility for payment of all applicable taxes directly to the Department of Revenue.

A direct pay permit can be issued to a purchaser of direct mail. The General Statute defines direct mail as “Printed material delivered or distributed by the United States Postal Service or other delivery service to a mass audience or to addresses on a mailing list provided by the purchaser or at the direction of the purchaser when the cost of the items is not billed directly to the recipients. The term includes tangible personal property supplied directly or indirectly by the purchaser to the direct mail seller for inclusion in the package containing the printed material. The term does not include multiple items of printed material delivered to a single address.” A direct pay permit issued for direct mail does not apply to the purchase of any tangible personal property or service other than the purchase of direct mail.

A business may request permission from the Secretary of Revenue to discharge its sales and use tax liability directly to the Department by completing Form E-595C, Application for Direct Pay Permit for Sales and Use Taxes on Direct Mail. This authorization by the Secretary is conditioned upon full compliance with the provisions of the Sales and Use Tax Law and timely payment of all taxes due.

Taxpayers that have been authorized to discharge their liability in this manner are issued a numbered direct pay permit to buy direct mail subject to sales or use tax without payment of tax to vendors. The record of the permit must be furnished to vendors or maintained electronically. The permit must be maintained by the vendors as their authority to treat the transactions as exempt from tax. Only one copy of the direct pay permit is required for any vendor to thereafter sell direct mail to a valid permit holder without collecting the tax on its sales. A business, which has been issued a permit, as well as all other taxpayers, must file sales and use tax returns, remit the sales and use taxes due, and maintain records that clearly reflect the tax liability.

The following database contains the names and permit numbers of current Direct Pay Permit holders:

Firms Assigned Direct Pay Permits for Sales and Use Taxes on Direct Mail

Last modified on: 10/31/07 03:54:06 PM .