California resale certificate and sales tax for resellers
A summary of what the sources listed on this page say about California: its permit and resale certificate, buying inventory for resale, and refunds of sales tax paid on inventory. General information only.
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Last reviewed
Every fact on this page comes from the sources listed below, as they read on the review date. Where a source did not say something, we leave it out. Sources can change after that date.
California quick facts
What the sources listed below say. Rules change, and how they apply depends on the facts of each case.
- State base sales tax rate
- 7.25%[11]
- Resale certificate
- CDTFA-230 (General Resale Certificate)[11]
- Certificate expiry (as listed)
- No expiry listed in the source[11]
- Permit or registration
- Seller's Permit[1]
- Cost of the permit
- Free (CDTFA may require a security deposit)[1]
- Where to apply
- State application page[10]
- Certificate form
- State certificate form[7]
Keep each purchase receipt linked to the items it covers. Get the app
What the state says about its permit and resale certificate
The state calls the registration associated with buying for resale and collecting tax a Seller's Permit.[1] The state says the cost is: Free (CDTFA may require a security deposit).[1] The state says it offers an online application.[110] State application page.[10]
The resale certificate the state lists is CDTFA-230 (General Resale Certificate). The source cited lists no expiry.[11] The state's certificate form asks for a permit or registration number.[79] State certificate form.[7]
What the state says about buying inventory for resale
Multistate certificates
- The state says it accepts the Multistate Tax Commission uniform certificate.[8]
Out-of-state buyers
Yes, in a documented case. CDTFA says a California retailer may accept a resale certificate for property delivered in California that is bought for resale out of state, and if the purchaser has no California seller's permit number, the out-of-state permit number must be noted on the certificate.[6]
Other points the sources mention
- California does not require one specific resale form. Regulation 1668 treats any document as a resale certificate if it has the purchaser's signature, name and address, seller's permit number (or an explanation of why none is needed), the phrase "for resale" and a date. CDTFA-230 is the General Resale Certificate form.[479]
- CDTFA says a seller's permit is not intended to be obtained just to issue resale certificates to suppliers, and that issuing one without intending to resell the merchandise is a misdemeanor. CDTFA says a resale certificate does not cover items that will be used, used in a business before selling, used personally, or held as an investment for appreciation.[24]
- CDTFA says records must be kept for at least four years, longer if an audit covering that period is not complete.[5]
- CDTFA says occasional sales (no more than two sales in a 12-month period) generally do not require a seller's permit, and gives a garage sale of used items as an example.[2]
What the state says about refunds of sales tax paid on inventory
Some states let a purchaser request a refund of sales tax paid on items bought for resale, and some direct the request to the seller. Whether and how that applies depends on the facts of each purchase. This section reports what the sources say for California. According to the state's information, only the seller can claim the refund of that sales tax from the state, and a purchaser is pointed to the seller.[12]
- Who files, per the state
- Seller files, per the state[12]
- Refund form named by the state
- Form CDTFA-101 (Claim for Refund or Credit)[12]
- How the state says to submit
- Form CDTFA-101, which the form says is filed online, by mail or email, or in person[12]
- Time limit the state describes
- Generally 3 years[12]
CDTFA Regulation 1700 says its offset rules do not necessarily limit the rights of customers to pursue refunds. CDTFA Publication 117 describes how to file and gives the deadline as the latest of 3 years from the due date of the return on which too much tax was paid, 6 months from the date the tax was overpaid, or, for most programs, 6 months from the date a determination became final.[12]
Illustration: the California state base rate applied to an amount you enter
Enter an amount to see an illustration.
Illustration only. It applies the 7.25% state base rate to the amount entered, and assumes that amount is before tax. It leaves out local taxes, exemptions and every other rule, which can change the result. It is an estimate for illustration, not a tax calculation or a prediction of any amount owed, deductible or refundable.
Not tax advice. Last reviewed . Confirm with the state agency or a qualified tax professional. Report an error
Keep each purchase receipt linked to the items it covers
Strooply is an app for eBay resellers that identifies items from photos, shows live comps and sold-price estimates, drafts eBay listings for your review, and tracks costs and profit.
Receipt scanning, on Pro and Team plans, links each purchase receipt to the items it covers, with the tax shown on the receipt. It can misread prices, dates or line items.
Strooply is record-keeping software. It does not prepare or file tax returns, refund claims, or other filings, it is not a tax preparer, and its figures are estimates to check against your own records.
A free plan is available.
Common questions and what the sources say
Do I need a seller's permit to sell on eBay in California?
CDTFA says a seller of tangible personal property in California is generally required to hold a seller's permit, even if the sales are made through Internet auction houses. The exception is a sale made through a marketplace where a marketplace facilitator is the retailer responsible for the tax. CDTFA says the person operating the auction site can say whether it is a marketplace facilitator.[23]
How do I get a resale certificate in California?
CDTFA says there is no separate application for a resale certificate. It says a seller's permit is a state license that lets its holder issue resale certificates to suppliers, and the purchaser issues the certificate. CDTFA-230 is one form that can be used, and the certificate must state that the property is purchased for resale and give the purchaser's seller's permit number.[2479]
Is there a fee for a California seller's permit?
CDTFA says there is no fee for a seller's permit and that registering online is free. It says it may require a security deposit to cover any unpaid taxes if the business later closes, and that the amount is set at application.[1]
Does a California resale certificate expire?
The Multistate Tax Commission's California note says a valid resale certificate is effective until the issuer revokes it. Under Regulation 1668 the seller must take the certificate timely and in good faith to be relieved of the burden of proving the sale was for resale.[89]
Does California accept the Multistate Tax Commission resale certificate?
Yes, California is listed on it. The MTC's California note says the certificate is not valid as an exemption certificate and is limited to use as a resale certificate under Regulation 1668.[8]
Not tax advice. Last reviewed . Confirm with the state agency or a qualified tax professional. Report an error
Where these facts come from
Each number in square brackets on this page matches an entry below. Check a source itself for its current wording.
- CDTFA: Obtaining a Seller's Permit, cdtfa.ca.gov/taxes-and-fees/faqseller.htm
- CDTFA: Publication 107, Do You Need a California Seller's Permit?, cdtfa.ca.gov/formspubs/pub107/
- CDTFA: Publication 109, Internet Sales, cdtfa.ca.gov/formspubs/pub109/
- CDTFA: Publication 103, Sales for Resale, cdtfa.ca.gov/formspubs/pub103/
- CDTFA: Tax Guide for Out-of-State Retailers, Doing Daily Business, cdtfa.ca.gov/industry/out-of-state-retailers/doing-daily-business.htm
- CDTFA: Sales and Use Tax Annotations, 475.0000 Resale Certificates, cdtfa.ca.gov/lawguides/vol2/suta/475-0000-all.html
- CDTFA: CDTFA-230, General Resale Certificate, cdtfa.ca.gov/formspubs/cdtfa230.pdf
- Multistate Tax Commission: Uniform Sales & Use Tax Resale Certificate (Multijurisdiction), state notes, www.mtc.gov/wp-content/uploads/2023/01/Unif-Resale-Cert-revised-10-14-22.pdf
- CDTFA: Regulation 1668, Resale Certificates, cdtfa.ca.gov/lawguides/vol1/sutr/1668.html
- CDTFA: Permits, Licenses and Accounts, cdtfa.ca.gov/services/permits-licenses.htm
- CA Dept. of Tax and Fee Administration (CDTFA), rates, certificate and refund information, cdtfa.ca.gov/formspubs/pub117/
- Form CDTFA-101 (Claim for Refund or Credit), state refund form, www.cdtfa.ca.gov/formspubs/cdtfa101.pdf