A California sales tax permit is not the same as a California resale certificate. Conversely, a resale certificate allows a buyer such as a retailer to purchase goods from a supplier such as a wholesaler without having to pay sales tax on the goods that would otherwise be taxable. It is the responsibility of the supplier to keep a copy of the resale certificate for compliance purposes and the responsibility of the retailer to collect sales tax when the goods are sold. In order to have a California resale certificate, you must first apply for a California sales tax permit.
This sales permit will provide you with a California Tax ID number sales tax number which will be a necessary field on the California resale certificate. This permit will furnish a business with a unique California sales tax number, otherwise referred to as a Sales Tax ID number. The certificate may be in any form so long as it contains: The name and address of the purchaser. A description of the property to be purchase. An explicit statement that the described property is being purchased for resale.
Such permits are normally issued to selling operations lasting no longer than 90 days at one location. There are other activities that may qualify a selling operation as being engaged in business in California.
Due to the various rules that apply, you should contact our Customer Service Center to determine if you must obtain a permit. In general, retail sales of tangible personal property in California are subject to sales tax. Examples of tangible personal property include such items as furniture, giftware, toys, antiques, clothing, and so forth.
In addition, some service and labor costs are taxable if they result in the creation of tangible personal property. For example, if you make a ring for a specific customer, you are creating tangible personal property. Therefore, the total amount you charge for the ring including the charge for labor would be taxable. This would also be the case if the customer provided the materials for making the ring.
However, labor costs for making repairs resetting a diamond, for example are not taxable since they do not result in the creation of tangible personal property. You are only repairing or reconditioning existing property.
Likewise, labor charges to install or apply property which has been sold is not ordinarily subject to sales tax note : the labor charge should be stated separately on the bill. Cigarette and Tobacco Products : If you sell cigarettes and tobacco products at retail, you must have a California Cigarette and Tobacco Products Retailer's License before purchasing or selling cigarettes or tobacco products.
You must obtain this license in addition to your seller's permit. You must obtain this account in addition to your seller's permit. You must have an IFTA license if you are an interstate motor carrier reporting fuel taxes. An IFTA license allows a taxpayer to file one tax report that covers all member jurisdictions. Lead Acid Battery Fees : You must register as a battery dealer and pay the California battery fee if you sell replacement lead-acid batteries at retail in California. Dealers may also be liable for the manufacturer battery fee.
You must separately register as a manufacturer and pay the manufacturer battery fee if you are a manufacturer of lead-acid-batteries and sell, offer for sale, or distribute the lead-acid batteries in California. If the manufacturer is not subject to the jurisdiction of this state, a dealer or other person who imports the lead-acid battery into California for sale or distribution is responsible to register and pay the manufacturer battery fee.
You will be required to file underground storage tank fee returns and pay any fee amounts due for the reporting period. Please see our complete list of Special Tax and Fee Programs. Our verification webpage will help you verify a seller's permit, cigarette and tobacco product retailer's license, and eWaste account. It is important that you close your permit, license, or account when one of the following happens:.
You can also read Publication 74 for more information. Please call our Customer Service Center at to start the process to close your special tax or fee permit, license, or account. Visit this webpage to learn more about registering for our permits, licenses, and accounts. If you are buying a business, you may need to obtain a seller's permit, as permits are not transferable. If you are selling or discontinuing a business, you will need to close out your account.
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