As a seller, you may conduct business with other sellers who want to purchase your products for resale. With this type of transaction, a resale certificate must be provided so that the buyer can purchase the products without paying sales tax.
However, as a seller, it's important to first verify the resale certificate. Otherwise, if the certificate is invalid, you may be required to pay the sales tax on the transaction. Keep reading to learn about resale verification to avoid any potential sales tax issues in the future.
Check the Information
There is no set form for a resale certificate. One of the first steps to verifying a CA resale license is to ensure that all the required information is provided. A proper resale certificate in California must include the following information:
A resale certificate must be provided before the purchase is billed, before delivery of the property, or at any time during your normal billing cycle. Be sure to retain the certificate for any tax questions in the future.
Verify the Buyer’s Permit Number
The best way to verify a resale certificate is to ensure the seller's permit number is current. In California, there are two ways to verify a seller's permit number. You can call the State Board of Equalization at 888-225-5263 or you can use the online Seller's Permit Verification tool. Both methods allow you to determine if a business is registered in California as well as how the business is registered.
In some instances, a business may not be required to have a seller’s or resale permit in California. In this instance, the business must provide an explanation as to why a seller's permit isn't required—but a California resale certificate for out of state sales is still required.
Get a Seller’s Permit Today
Before you can legally sell tangible products in California, you’re required to have a seller’s permit. This also means that you must have a seller's permit before you can provide a California resale number to other sellers. This permit is needed not only to conduct business but also for California sales tax registration.
If you’ve started the traditional pen and paper process of filing for a seller’s permit, you know just how confusing and time-consuming the process can be.
At Sellerpermits.com, we provide a quick and easy tool that allows you to apply for a seller’s permit in just a few minutes. Our tool will save you time and frustration, allowing your business to open its doors even sooner. After you've provided the required information, our system sends the data over to the California Board of Equalization.
To learn more about our process or for questions about obtaining a seller's permit in California, contact us at (415) 857-3301.