A resale certificate in California is valid until it is revoked in writing by the seller unless the certificate was issued for a specific transaction, which is generally good for up to one year.

Is a resale certificate required in California?

Issuing a resale certificate allows you to buy items you will sell in your business operations without paying amounts for tax to your suppliers. Generally, if you make three or more sales in a 12-month period, you are required to hold a seller’s permit.

How do I file a California tax exemption?

There are 2 ways to get tax-exempt status in California:

1. Exemption Application (Form 3500) Download the form. Determine your exemption type , complete, print, and mail your application.
2. Submission of Exemption Request (Form 3500A) If you have a federal determination letter:

When do you need a resale certificate in California?

Instead, goods that are solely purchased for resale will be subject to sales tax only when they are finally sold for personal use. In California, you can submit a form Resale Certificate to each supplier indicating that the goods that you are purchasing are solely for resale pursuant to a valid Seller’s Permit.

Is there an expiration date on a resale certificate?

Expiration. In some states, including Alaska and Delaware, there is no state-imposed sales tax. As a result, in these and other states without a sales tax, there is no need for a resale certificate. In many other states, including California, Indiana and Maine, resale certificates are valid until revoked.

Do you need seller’s permit number to sell in California?

The purchaser’s seller’s permit number. If you aren’t required to hold a seller’s permit number, you can state that on the resale certificate and explain why. For instance, you may purchase products in California, but sell them in other states where you don’t have nexus.

Do you have to pay sales tax on resale in California?

The California Board of Equalization (BOE) requires sales tax be collected on nearly every tangible personal property item sold, but the tax isn’t always collected on every sale. Notably, if you purchase goods for resale, it’s unnecessary to pay sales tax because you will collect the tax when you resell the item to an end user.