Fill Out Your California Sales Tax Certificate Template

Fill Out Your California Sales Tax Certificate Template

The California Sales Tax Certificate form is a document used to claim exemption from sales tax on purchases made for resale. This certificate allows buyers to certify that their purchases are intended for resale in the regular course of business, thereby avoiding unnecessary tax charges. To ensure compliance, it is crucial to fill out the form accurately and submit it to the seller.

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The California Sales Tax Certificate form serves as a vital document for businesses engaged in wholesale, retail, manufacturing, or leasing activities. It allows buyers to claim exemption from sales tax on purchases intended for resale or incorporation into a new product. This form is recognized across multiple jurisdictions, providing a standardized approach to tax exemption claims. Buyers must accurately fill out their information, including their business type and state registration details, to ensure compliance. The certificate must be presented to the seller at the time of purchase, and it remains valid until canceled or revoked. Both the buyer and seller share the responsibility of understanding and adhering to the applicable tax laws. Misuse of the certificate can lead to penalties, emphasizing the importance of proper use. This document not only streamlines the purchasing process but also helps businesses manage their tax obligations effectively.

Contents

California Sales Tax Certificate Example

1
UNIFORM SALES & USE TAX RESALE CERTIFICATE — MULTIJURISDICTION
The below-listed states have indicated that this certificate is acceptable as a resale/exemption certificate for sales/use tax, subject to the instructions
and notes on pages 2─6. The issuing Buyer and the recipient Seller have the responsibility to determine the proper use of this certificate under
applicable laws in each state, as these may change from time to time. This form was revised as of October 14, 2022.
Issued
to
Seller:
Address:
I
certify
that:
Name of
Firm
(Buyer):
Address:
is engaged or is registered as a
Wholesaler
Retailer
Manufacturer
Seller
Lessor (see notes on pages 2─4)
Other
(Specify)
and is registered for sales/use tax with the below-listed states and cities within which Seller would deliver purchases to Buyer and that any such
purchases are for wholesale, resale, or ingredients or components of a new product or service to be resold, leased, or rented in the normal course of
business. Buyer is in the business of wholesaling, retailing, manufacturing, leasing (renting), or selling the following:
Description of Business:
General description of tangible property or taxable services to be purchased from the Seller:
State
State Registration, Seller’s Permit, or ID
Number of Purchaser
State
State Registration, Seller’s Permit, or ID
Number of Purchaser
AK/ARSSTC
1
MO
19
AL
2
NE
AR
NV
20
AZ
3
NJ
CA
4
NM
5,21
CO
5,6
NC
22
CT
7
ND
FL
8
OH
23
GA
9
OK
24
HI
5,10
PA
25
ID
11
RI
26
IL
5,12
SC
IA
SD
27
KS
13
TN
28
KY
14
TX
29
ME
15
UT
MD
16
VT
30
MI
17
WA
31
MN
18
WI
32
I further certify that if any property or service so purchased tax-free is used or consumed by Buyer so as to make it subject to sales/use tax, Buyer
will pay the tax due directly to the proper taxing authority when state law so provides or inform the Seller for added tax billing. This certificate shall
be a part of each order that Buyer may hereafter give to Seller, unless otherwise specified, and shall be valid until canceled by Buyer in writing or
revoked by the city or state.
Under penalties of perjury, I swear or affirm that the information on this form is true and correct as to every material matter.
Authorized Signature:
(Owner, Partner, or Corporate Officer, or other authorized signer of Buyer)
Title:
Date:
2
INSTRUCTIONS
In order to comply with state and local sales tax law
requirements,
the Seller must have in its files a
properly
completed
exemption certificate from all of its
customers
(Buyers) who claim a sales/use tax
exemption.
If the Seller does not have this
certificate,
it is obliged to collect the tax for the state in which the
property
or service is delivered.
Generally, a Buyer must be registered as a retailer for sales/use tax in states where the Buyer has sales/use tax nexus.
The sales/use tax registration number for the state should be entered on this certificate in the box for that state. A Buyer
has sales/use tax nexus in a state if
the Buyer
has physical presence in that state or has made sufficient sales to
cust
omers in that state to have sales/use tax economic nexus. The threshold of sales activity needed to establish sales/use tax
economic nexus may differ by state. If the Buyer is entitled to claim a resale sales tax exemption or
exclusion,
the Buyer
should complete the certificate and send it to the Seller at the time of purchase or as soon thereafter as
possible.
If the Buyer
purchases
tax free for a reason other than resale, ingredient or component
exemption,
the Buyer cannot use this form and
must provide to the Seller the proper state exemption certificate
for that
specific exemption.
Caution: Misuse of this
certificate
by Buyer, Seller, lessor, lessee, or the
representative
thereof may be
punishable
by fine,
imprisonment or loss of right to issue or accept a
certificate
in some states or cities.
Notes:
1.
Alaska Remote Sellers Sales Tax Commission (ARSSTC):
This certificate is valid as a resale certificate only if it contains the
purchaser’s name, address, signature and either the purchaser’s ARSSTC Remote Reseller Certificate of Exemption number
or the purchaser’s resale certificate number issued by the local taxing jurisdiction. The purchaser should also provide a
general description of the tangible personal property or taxable services that are being purchased from the seller. The
purchaser’s claim for exemption may be verified by calling the ARSSTC at 907-790-5300.
2.
Alabama:
Each retailer shall be
responsible
for
determining
the
validity
of a
purchaser’s
claim for exemption.
3.
Arizona:
This certificate may be used only when making
purchases
of tangible
personal property
for resale in the
ordinary course of business, and not for any other
statutory deduction
or exemption. It is valid as a resale
certificate
only if it contains the
purchaser’s
name, address,
signature,
and Arizona
transaction privilege
tax (or other state sales
tax) license number, as required by Arizona Revised
Statutes
§ 42-5022, Burden of proving sales not at retail.
4.
This
certificate
is not valid as an
exemption certificate.
Its use is limited to use as a resale
certificate
subject
to the
provisions
of Title 18,
California
Code of
Regulations,
Section 1668 (Sales and Use Tax Regulation
1668, Resale Certificate).
By use of this
certificate,
the
purchaser
certifies that the
property
is purchased for resale in the regular course
of
business
in the
form
of
tangible personal
property, which
includes property
incorporated
as an
ingredient
or
component
of an item
manufactured
for resale in the regular course of business.
When the
applicable
tax would be sales tax, it is the Seller who owes that tax unless the Seller takes a timely
and valid resale
certificate
in good faith.
A valid resale
certificate
is effective until the issuer revokes the certificate.
5.
Colorado,
Hawaii, Illinois, and New
Mexico:
these states do not permit the use of this
certificate
to claim a resale
exemption for the
purchase
of a taxable service for resale.
6. Colorado: Sellers should review 1 Code Colo. Regs. 201-1, Rule 39-26-105-3 (Documenting Exempt Sales) prior to
accepting this form. The Colorado Department of Revenue collects and administers the state sales and use taxes and the
sales and use taxes of certain cities, counties, and special districts (see department publication DR 1002). Use of this
form (along with the other documentation required by department rule) is acceptable for taxes administered by the
Colorado Department
of
Revenue. This form may not be accepted by self-collecting Colorado home-rule cities. Sellers
are advised to contact those cities directly for further instruction.
7.
Connecticut:
This
certificate
is not valid as an
exemption certificate.
Its use is limited to use as a resale
certificate
subject to Conn. Gen. State
§§12-410(5)
and
12-411(14)
and
regulations
and
administrative pronouncements
pertaining
to resale certificates. The good faith of the seller will be questioned if it has knowledge of facts which
give rise to a reasonable inference that the purchaser does not intend to resell the property, as, for example,
knowledge that the purchaser of particular merchandise (or service) is not engaged in the business of selling that
kind of merchandise (or service).
8.
Florida:
Allows the Multistate Tax Commission’s Uniform Sales and Use Tax Resale Certificate –
Multijurisdiction for tax-exempt purchases for resale; however, the selling dealer must also obtain a resale
3
authorization number from the Florida Department of Revenue at
floridarevenue.com/taxes/certificates,
or by
calling 877-357-3725, and entering the purchaser’s Florida Annual Resale Certificate number.
9.
Georgia: a)
The
purchaser’s state-of-registration
number will be accepted in lieu of Georgia’s
registration
number
when the
purchaser
is located outside Georgia, does not have nexus with Georgia, and the tangible
personal
property
is delivered by drop
shipment
to the
purchaser’s
customer located in Georgia.
b) The certificate relieves the seller from the burden of proof on sales for resale if the seller acquires from the purchaser
a properly completed certificate, taken in good faith, from a purchaser who:
(i) Is engaged in the business of selling tangible personal property;
(ii) Has a valid sales tax registration number at the time of purchase and has listed his or her sales tax number
on the certificate; and
(iii) At the time of purchasing the tangible personal property, the seller has no reason to believe that the
purchaser does not intend to resell it in his or her regular course of business.
10.
Hawaii: Allows this
certificate
to be used by the seller to claim a lower general excise tax rate or no general excise tax, rather
than the buyer claiming an
exemption.
The no tax
situation
occurs when the
purchaser
of imported goods certifies to the seller,
who
originally
imported the goods into Hawaii, that the purchaser will resell the imported goods at
wholesale.
If the lower rate
or no-tax does not in fact apply to the sale, the
purchaser
is liable to pay the seller the
additional
tax imposed. See Hawaii
Dept. of
Taxation
Tax
Information
Release No. 93-5, November 10, 1993, and Tax
Information
Release No. 98-8, October 30,
1998.
11. Idaho: This certificate may be used only when making purchases of tangible personal property for resale in the ordinary
cours
e of business, and not for any other statutory deduction or exemption. It is valid as a resale certificate only if it complies
with
Idaho Code Section 63-3622(c)
.
12. Illinois: Use of this
certificate
in
Illinois
is subject to the
provisions
of 86 Ill. Adm. Code Ch.I, Sec. 130.1405 (Seller’s
Responsibility to Obtain Certificates of Resale and Requirements for Certificates of
Resale)
.
Illinois
does not have an
exemption
for sales of
property
for
subsequent
lease or rental, except as follows: (i) a motor vehicle that is used for
automobile renting subject to the Automobile Renting Occupation and Use tax Act (35 ILCS 120/2-5(7)) and (ii)
merchandise that the purchaser certifies is purchased to be rented subject to the Rental Purchase Agreement Occupation
and Use Tax Act (35 ILCS 120/2-5(43)). Buyers purchasing items for lease or rental that meet either of these two
exceptions
should not use this Uniform Sales and Use Tax Resale Certificate, but instead must provide to Sellers proof of registration
for the Automobile Renting Occupation and Use Tax or the Rental Purchase Agreement Occupation and Use Tax, as
appropriate, and, in the case of the Rental Purchase Agreement Occupation and Use Tax, should use Form ST-261
(Exemption Certificate for Property Subject to Rental Purchase Agreement Tax). The use of this certificate for
claiming
resale
purchases
of services does not have any
application
in Illinois.
The
registration
number to be supplied next to Illinois on page 1 of this certificate must be the Illinois
registration
or
re
sale
number;
no other state’s
registration
number is acceptable.
“Good faith” is not the standard of care to be
exercised
by a retailer in Illinois. A retailer in Illinois is not required to
determine whether the
purchaser
actually intends to resell the item. Instead, a retailer must
confirm
that the
purchaser
has a
valid
registration
or resale number at the time of
purchase.
If a
purchaser
fails to provide a
certificate
of resale at the time of
sale in Illinois, the seller must charge the
purchaser
tax.
While there is no
statutory requirement
that blanket
certificates
of resale be renewed at certain
intervals, blanket
certificates should be updated
periodically,
and no less
frequently
than every three years.
13. Kansas: Purchaser must enter a valid Kansas Registration Number issued by the Kansas Department of Revenue.
Exemption certificates must be obtained from the purchaser at the time of the sale, but no later than 90
days subsequent to the date of sale. This resale certificate may only be used as a resale exemption
certificate or ingredient or component part exemption certificate. This resale certificate may not be
used by contractors to purchase materials without sales tax. This resale certificate may not be used by
Manufacturing Companies to purchase machinery and equipment without sales tax. See Kansas
Certificate ST-201. This resale certificate need not be renewed or updated when there is a recurring
business relationship between the buyer and seller. A recurring business relationship exists when a
period of no more than 12 months elapses between sales transactions. This resale certificate cannot
4
be used by contractors to purchase labor services from other contractors without tax.
14. Kentucky: a)
K
en
tuck
y does not permit the use of this
certificate
to claim a resale exclusion for the
purchase
of admissions.b) This
certificate
is not valid as an
exemption certificate.
Its use is limited to use
as a resale
certificate
subject to the
provisions
of
Kentucky
Revised Statute 139.270.
c) The use of this
certificate
by the
purchaser constitutes
the
issuance
of a blanket certificate in accordance with
Kentucky Administrative Regulation
103 KAR 31:111.
15. Maine: This state does not have an exemption for sales of
property
for
subsequent
lease or rental. This certificate is not valid
for use by manufacturers purchasing tangible personal property that becomes an ingredient or component part of a product
manufact
ured by the manufacturer. Please use Maine’s Industrial Users Exemption Certificate (ST-A-117).
16.
Maryland:
This
certificate
is not valid as an
exemption certificate. Its
use
is
limited
to
use
as
a
resale
certificate
subject
to
the
provisions
of Md
Tax
–
Gen
§11-408(b).
All
claims
for
the
resale
exclusion,
even
those
made
with
this
certificate,
must
include
the
Buyer’s
Maryland sales
and
use tax
registration
number.
Certificates
without
a
Maryland
sales
and
use
tax
registration
number
will
not
be
honored
by
the
State.
However,
in
lieu
of
a sale
and
use
tax
registration
number,
sellers
may accept resale
certificates
that bear the
exemption
number issued to a
religious organization.
Exemption certifications
issued to
religious organizations
consist of 8 digits, the first two of which
are always “29”.
Maryland sales
and
use
tax
registration
numbers, exemptions,
and direct pay numbers may be verified on the
website
of the
Comptroller
of the
Treasury
at www.marylandtaxes.gov.
17.
Michigan:
Blanket certificates are effective for a period of four years unless a lesser period is mutually agreed to
and stated on this certificate. A seller who receives and maintains a record of a properly completed certificate is
not generally liable for sales or use tax on the transaction, even if a purchaser improperly claims an exemption.
There
are certain limited situations in which a seller can be liable for the tax,
su
ch as those involving fraud on the part
of the seller. For more information, see revenue Administrative Bulletin (RAB)
2016
-14.
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19. Missouri: a)
Purchasers
who
improperly purchase property
or services sales-tax free using this certificate may be required
to pay the tax, interest,
additions
to tax, or penalty.
b) Even if
property
is delivered outside
Missouri,
facts and
circumstances
may subject it to
Missouri
tax, contrary
to the second
sentence
of the first
paragraph
of the above instructions.
5
20. Nevada: a) This certificate is not valid as an exemption certificate. Its use is limited to use as a resale certificate
subject to the provisions of NRS 372.165, NRS 372.170, NRS 372.175 and NRS 372.180 regarding
sales tax, and NRS 372.235, NRS 372.240 and NRS 372.245 regarding use
tax
.
b) By use of this certificate, the purchaser certifies that the property is purchased for resale in the regular course
of business in the form of tangible personal property, which includes property incorporated as an ingredient
or component of an item manufactured for resale in the regular course of business.
c) When the applicable tax would be sales tax, it is the Seller who owes that tax unless the Seller takes a
timely and valid resale certificate.
d) A valid resale certificate is typically effective until the issuer revokes the certificate, but periodic renewal of
the certificate is recommended.
e) Contractors are generally considered consumers of tangible personal property pursuant to NAC 372.200 and
are unable and should not use this certificate, and Sellers should not accept it from a contractor.
21. New
Mexico:
For
transactions occurring
on or after July 1, 1998, New Mexico will accept this
certificate
in lieu of a New
Mexico
nontaxable transaction certificate
and as
evidence
of the
deductibility
of a sale of tangible
personal property
provided:
a) this certificate was not issued by the State of New Mexico;
b) the buyer is not required to be
registered
in New
Mexico;
and
c) the buyer is
purchasing tangible personal property
for resale or
incorporation
as an
ingredient
or
component
of
a
manufactured
product.
22. North
Carolina:
This
certificate
is not valid as an
exemption
certificate if signed by a person such as a contractor who
intends to use the property. Its use is subject to G.S.
105-164.28
and any
administrative
rules or
directives pertaining
to
resale certificates.
23.
Ohio:
a) The buyer must specify which one of the reasons for
exemption
on the
certificate
applies. This may be done by
circling or
underlining
the
appropriate
reason or writing it on the
form
above the state
registration
section.
Failure to
specify
the
exemption
reason will, on audit, result in
disallowance
of the certificate.
b) If no certificate is provided or obtained from the buyer at the time of the sale or within ninety days after the
date on which such sale is consummated, it shall be presumed that the tax applies.
24.
Oklahoma:
Oklahoma would allow this
certificate
in lieu of a copy of the
purchaser’s
sales tax permit as one of the
elements of
“properly
co
mpleted
documents”
which is one of the three
requirements
which must be met prior to the
vendor being relieved of liability. The other two
requirements
are that the vendor must have the
certificate
in his
possession within ninety (90) days subsequent to the date of sale and must accept the
documentation
in good faith.
The specific documentation required under OAC
710
:65-7-6 is: Written certification containing the purchaser’s name,
address, type of business,
sales tax
permit number, and the signature of the purchaser. OAC 710:65-7-8.
Absent strict
compliance
with these
requirements,
Oklahoma holds a seller liable for sales tax due on sales where the
claimed
exemption
is found to be invalid, for
whatever
reason, unless the Tax
Commission determines
that
purchaser
should be pursued for
collection
of the tax resulting from
improper presentation
of a certificate.
25. Pennsylvania: This
certificate
is not valid as an
exemption certificate.
It is valid as a resale
certificate subject
to
the provisions of
61
PA
Code §32.3. The buyer should enter their eight-digit Pennsylvania Sales
and Use Tax license number. If the buyer does not have a Pennsylvania Sales and Use Tax
license number, they must provide an explanation as to why they are not licensed.
26. Rhode Island: Rhode Island allows this
certificate
to be used to
claim
a resale
exemption
only when the item will be
resold in the same form. It does not permit this
certificate
to be used to claim any other type of exemption.
27. South Dakota: Services which are
purchased
by a service provider and delivered to a current customer in
conjunction
with the services contracted to be provided to the customer are claimed to be for resale. Receipts from the sale of a
service for
resale
by the purchaser are not subject to sales tax if the purchaser furnishes a resale certificate which the seller
accepts in good faith. In order for the
transaction
to be a sale for resale, the
following conditions
must be present:
(a) The service is purchased for or on behalf of a current customer;
6
(b) The
purchaser
of the service does not use the service in any manner; and
(c) The service is delivered or resold to the customer without any
alteration
or change.
28. Tennessee: This certificate may only be used to claim a resale exemption for purchases of tangible personal property or
taxable services, amusements, or digital products that are for resale; or a component part of a manufactured, assembled, processed, or
refined product that is for resale. This certificate may not be used to claim any other type of exemption in Tennessee.
A Tennessee supplier that sells tangible personal property or taxable services to an out-of-state dealer for resale and drop ships the
goods to the out-of-state dealer's Tennessee customer, may accept a resale certificate issued by another state, a fully completed
Streamlined Sales and Use Tax Exemption Certificate, or the Uniform Sales and Use Tax Resale Certificate – Multijurisdiction that
includes the sales tax ID number issued by the other state to make drop shipped sales for resale without tax. See important notice 22-
01 Drop Shipment Rule Repealed for more information.
Any tangible personal property or other taxable item or service purchased without the payment of tax using this resale certificate, that
is later used or consumed in any manner by the buyer, or is given away, must be reported and the tax paid directly to the Tennessee
Department of Revenue.
29. Texas: Items
purchased
for resale must be for resale within the
geographical
limits of the United States, its
territories, and possessions.
30. Vermont: The reseller must be registered to collect Vermont sales tax. Vermont allows this certificate to be used to claim
a resale exemption for goods only, not component parts to a service. It is not to be used by contractors. Vermont’s
manufacturing exemption is limited to property consumed in the manufacturing process, used directly and exclusively in
the manufacturing process, or packaging or shipping materials for use by a manufacturer or wholesale distributor. Any
other uses and the use for any other exemptions is not permitted.
While there is no statutory requirement that blanket certificates of resale be renewed at certain intervals, blanket
certificates should be updated periodically, and no less frequently than every three years.
31.
Washington:
Buyer acknowledges that in addition to the amount of tax due, the misuse of this form may result in interest and
penalties being imposed by law.
32.
Wisconsin:
Allows this
certificate
to be used to claim a resale
exemption
only. It does not permit this certificate to be used to
claim
any other type of exemption.
7
Frequently Asked
Questions
Uniform Sales and Use Tax Certificate –
M
u
lt
i
j
u
r
is
d
i
ct
iona
l
•
To whom do I give this certificate?
•
Can I register for multiple states simultaneously?
•
I have received this certificate from my customer. What do I do with it?
•
Am I the Buyer or the Seller?
•
What is the purpose of this certificate?
•
How do I fill out the certificate?
•
What
information
goes on the line next to each state abbreviation?
•
What if I don’t have an ID number for any (or some) state(s)?
•
Who should use this certificate?
•
Can I use this certificate?
•
Which states accept the certificate?
•
I am based in, buying from, or selling into Maine. Can I use this certificate?
•
I am a drop shipper. Can I use this certificate?
•
Do I have to fill this certificate out for every purchase?
•
Can this certificate be used as a blanket certificate?
•
Who determines whether this certificate will be accepted?
•
I have been asked to accept this certificate. How do I know whether I should accept it?
•
Is there a more recent version of this certificate?
•
To whom should I talk to for more information?
To whom do I give this certificate?
If you are purchasing goods for resale, you will give this certificate to your vendor, so that your vendor will
not charge you sales tax.
If you are selling goods for resale, and you have received this certificate from your buyer, you will keep the
certificate on file.
Can I register for multiple states simultaneously?
A buyer must be registered as a retailer for sales/use tax in states where the buyer has sales/use tax nexus in a state.
Registration in each state must be done separately with that state. See the state tax agency’s website. The Federal
Tax Administrators (FTA) maintains a centralized list of links to state agency websites:
https://taxadmin.memberclicks.net/state-tax-agencies.
The Streamlined Sales Tax Governing Board, Inc. maintains
a centralized registration system that can be used to register in states that are members. For more information, see
www.streramlinedsalestax.org.
I have received this certificate from my customer. What do I do with it?
Once you have examined the certificate and you have accepted it, you will keep it on file as prescribed by
applicable state laws. The relevant state will generally be the state where you are located, or the state
where the sales transaction took place.
Am I the Buyer or the Seller?
If you are purchasing goods for resale, you are the Buyer. If you are selling goods to a buyer who is
purchasing them for resale, you are the Seller.
8
What is the purpose of this certificate?
This certificate is to be used as supporting
documentation
that the Seller should not collect sales tax because
the good or service sold to the Buyer, is exempt from the tax as a sale for resale or as an ingredient or
component of a product manufactured by the Buyer and to be resold.
How do I fill out the certificate?
The individual filling out the certificate is referred to as the Buyer. The first two lines, “Issued to Seller” an
“Address”, should be filled in with the name and address of the Seller. The rest of the information refers to
the Buyer (name and address of Buyer, business engaged in, description of business, property or services to be
purchased). The line next to each state abbreviation should be filled out with the relevant state ID number.
What
information
goes on the line next to each state abbreviation?
The line next to each state abbreviation should be filled in with the relevant state ID number. This will be the
sales/use tax registration or resale authorization number issued by the state (see next FAQ for an exception).
For example, on the line next to AL, provide the sales/use tax registration number issued by Alabama. The
relevant registration number may be given various names in the different states. Some of the terms for this
number are State Registration or Seller’s Permit Number. Regardless of the name, this will be a number that
has been issued by the state to the Buyer (see next FAQ for an exception). This number is
generally
associated
with the reseller’s authority to collect and remit sales/use tax.
What if I don’t have a registration number for any (or some) state(s)?
The states vary in their rules regarding requirements for a reseller exemption or exclusion. Some states
require that the reseller (Buyer) be registered to collect sales tax in the state where the reseller makes its
purchase. Other states will accept the certificate if the registration number is provided for some other state
(such as the resident state of the Buyer). You should check with the relevant state to determine whether you
meet the
requirements
of that state.
Who should use this resale certificate?
A Buyer who is registered in one of the states listed on the resale certificate may be able to use this
certificate to make purchases of tangible property or taxable services that are for resale tax-exempt. States
vary in their policies for use of this certificate. Questions regarding your specific
eligibility
to use this
certificate should be addressed to the revenue
department
of the relevant state.
Can I use this resale certificate?
The states vary in their rules for use of this resale certificate. You should check with the relevant state to
determine whether you can use this resale certificate for purchases from sellers registered in that state. The
footnotes to the certificate provide some guidance; however, the Multistate Tax Commission cannot guarantee
that any state will accept this certificate. States may change their policies without informing the Multistate Tax
Commission.
Which states accept the certificate?
States listed on the certificate have accepted this certificate. States may change their policies for acceptance
of the certificate without notifying the Multistate Tax
Commission.
You may check with the relevant state
to determine the current status of the state’s acceptance policy. See next FAQ.
I am based in, buying from, or selling into Maine. Can I use this certificate?
Please contact Maine Revenue Services.
I am a drop shipper. Can I use this certificate?
If you are the Buyer and your Seller ships directly to your customers, you may be able to use this certificate
because you are a reseller. However, your Seller may be unwilling to accept this certificate if you are not
9
registered to collect sales tax in the state(s) where your customers are located.
If you are the Seller, and you have nexus with the state(s) into which you are shipping to your Buyer’s
customers, you may be required by such state(s) to remit sales tax on those sales if your Buyer is not
registered to collect sales tax.
Do I have to fill this resale certificate out for every purchase?
In many cases, this certificate can be used as a blanket certificate, so that you will only need to fill it out once
for each of your Sellers. Some states require periodic replacement with a renewed certificate (see notes on
certificate).
Can this resale certificate be used as a blanket certificate?
In many states this certificate can be used as a blanket certificate. You should verify this with the applicable
state. A blanket certificate is one that can be kept on file for multiple transactions between a specific Buyer
and specific Seller.
Who determines whether this resale
certificate
will be accepted?
The Seller will determine whether it will accept the certificate from the Buyer. The applicable state will
determine whether a certificate is acceptable for the purpose of
demonstrating
that sales tax was properly
exempted. The applicable state will generally be the state where the Seller is located or has nexus or
the
state where the sales transaction took place, or where the Buyer is located. The Multistate Tax Commission
does not determine whether this certificate will be accepted either by the Seller or the applicable state.
I have been asked to accept this resale certificate. How do I know whether I should accept it?
You should contact your state revenue
department
if you are not familiar with the policies regarding
acceptance of resale certificates.
In order for the certificate to be accepted in good faith by the Seller, Seller must exercise care that the
property or service being sold is of a type normally sold wholesale, resold, leased, rented or incorporated as
an ingredient or component of a product manufactured by Buyer and then resold in the usual course of its
business. A Seller failing to exercise care could be held liable for the sales tax due in some states.
Is there a more recent version of this certificate?
No. The most recent version is posted on our website (revised as of October 14, 2022). You may have
seen a version that has been modified in an unauthorized manner. You should not use any version other
than the one available on our website.
Whom should I talk to for more information?
For information regarding whether the certificate will be accepted in the applicable state, you should contact
the revenue department of that state. The Multistate Tax Commission’s Member States webpage has links to
revenue department websites.
▼ California Sales Tax Certificate File

Document Features

Fact Name Description
Purpose The California Sales Tax Certificate is used to document that a buyer is purchasing goods for resale, thus exempting them from sales tax.
Governing Law This certificate is governed by Title 18, California Code of Regulations, Section 1668.
Validity The certificate remains valid until the issuer revokes it in writing or it is canceled by the seller.
Seller's Responsibility Sellers must ensure they have a properly executed certificate on file to avoid collecting sales tax.
Buyer Certification The buyer certifies that the purchased items are for resale in the regular course of business.
Record Keeping Sellers should keep the certificate on file for auditing purposes and to demonstrate compliance with tax laws.
Multi-State Use This certificate can be used in multiple states, but each state's specific regulations must be followed.

Steps to Using California Sales Tax Certificate

Completing the California Sales Tax Certificate form is a straightforward process that requires attention to detail. This form serves as a crucial document for businesses engaged in the resale of goods, ensuring that sales tax is not incorrectly applied. Properly filling out this form can streamline transactions and maintain compliance with tax regulations.

  1. Begin by locating the section labeled "Issued to Seller". Here, write the name of the seller from whom you are purchasing the goods.
  2. Next, fill in the seller's address in the designated space below the seller's name.
  3. In the section labeled "Name of Firm (Buyer)", provide the name of your business or firm that is making the purchase.
  4. Indicate your firm's address in the space provided beneath your business name.
  5. Choose the appropriate box to classify your business as a Wholesaler, Retailer, Manufacturer, Seller (California), Lessor, or Other. If you select "Other," be sure to specify the nature of your business.
  6. In the section labeled "Description of Business", provide a general description of the nature of your business.
  7. Next, describe the tangible property or taxable services you plan to purchase from the seller in the "General description of tangible property or taxable services" section.
  8. For each state where you are registered, fill in the "State" column with the state abbreviation. Then, in the "State Registration, Seller’s Permit, or ID Number of Purchaser" column, enter the corresponding registration or permit number.
  9. After completing the state registration section, provide your Authorized Signature. This should be signed by an owner, partner, corporate officer, or another authorized signer.
  10. Fill in your title beneath your signature, followed by the date on which you are completing the form.

Once the form is filled out, it should be submitted to the seller. Keeping a copy for your records is advisable, as it serves as proof of your tax-exempt status for future transactions. This process ensures that both buyers and sellers are protected under the law, maintaining a smooth flow in business operations.

Understanding California Sales Tax Certificate

To whom do I give this certificate?

If you are purchasing goods for resale, you will give this certificate to your vendor. This allows your vendor not to charge you sales tax on your purchase. Conversely, if you are selling goods for resale and have received this certificate from your buyer, you should keep the certificate on file for your records.

Can I register for multiple states simultaneously?

Yes, you can register for multiple states at the same time. For more information on how to do this, visit www.sstregister.org . This site provides guidance on the registration process for sales tax in various states.

I have received this certificate from my customer. What do I do with it?

After you receive the certificate, examine it carefully. If you accept it in good faith, keep it on file as required by applicable state laws. Typically, the relevant state will be where your business is located or where the sales transaction occurred.

Am I the Buyer or the Seller?

If you are purchasing goods for resale, you are considered the Buyer. Conversely, if you are selling goods to someone who intends to resell them, you are the Seller in this transaction.

What is the purpose of this certificate?

The purpose of this certificate is to serve as supporting documentation that the Seller should not collect sales tax. This is because either the good or service sold, or the Buyer, is exempt from sales tax.

How do I fill out the certificate?

The individual filling out the certificate is referred to as the Buyer. Start by entering the Seller's information in the designated fields. Be sure to provide accurate details about your business and the nature of the purchase. Follow the instructions carefully to ensure the certificate is valid.

What information goes on the line next to each state abbreviation?

On the line next to each state abbreviation, you should include your state registration number, Seller’s Permit number, or ID number as required by that state. This information is essential for the certificate to be valid.

What if I don’t have an ID number for any (or some) state(s)?

If you do not have an ID number for any state, you may not be able to use the certificate for transactions in that state. It's important to check the specific requirements of each state regarding resale certificates. In some cases, you might need to apply for a registration number before using the certificate.

Who should use this certificate?

This certificate should be used by businesses that are purchasing goods for resale. It is intended for wholesalers, retailers, manufacturers, and others engaged in selling tangible personal property or taxable services.

Can I use this certificate?

Which states accept the certificate?

The certificate is accepted in various states, but specific rules and regulations may apply. Always check the most current guidelines for each state where you plan to use the certificate to ensure compliance.

I am based in, buying from, or selling into Maine. Can I use this certificate?

Maine does not allow this certificate to be used for claiming resale exemptions on taxable services. If you are buying or selling tangible personal property, you will need to check Maine’s specific rules regarding resale certificates.

I am a drop shipper. Can I use this certificate?

Yes, drop shippers can use this certificate, provided they meet the necessary requirements for resale in their state. Make sure to follow the regulations that apply to drop shipping to ensure compliance.

Do I have to fill this certificate out for every purchase?

Not necessarily. This certificate can often be used as a blanket certificate, meaning it can cover multiple purchases. However, it's advisable to check state-specific rules regarding the frequency of submissions.

Can this certificate be used as a blanket certificate?

Yes, this certificate can be used as a blanket certificate in many cases. This means that once you provide it to a Seller, it can cover future purchases unless otherwise specified or revoked.

Who determines whether this certificate will be accepted?

The acceptance of this certificate is determined by the Seller. Sellers must exercise due diligence to ensure that the certificate is valid and that the transaction complies with state laws.

I have been asked to accept this certificate. How do I know whether I should accept it?

Before accepting the certificate, verify that it is properly filled out and that the Buyer is engaged in a business that qualifies for the exemption. If everything appears in order and you have no reason to doubt its validity, you can accept it in good faith.

Is there a more recent version of this certificate?

Always check with your state’s tax authority or official resources for the most current version of the certificate. Tax regulations can change, and using the latest form is crucial for compliance.

To whom should I talk to for more information?

For more information, contact your state’s department of revenue or taxation. They can provide detailed guidance on using the California Sales Tax Certificate and any specific requirements for your situation.

Common mistakes

  1. Incomplete Information: Failing to provide all necessary details, such as the name of the firm, address, and type of business, can lead to issues with the certificate's validity.

  2. Incorrect Business Type: Selecting the wrong business type (e.g., wholesaler, retailer) can result in the certificate being deemed invalid. It is important to accurately represent the nature of the business.

  3. Missing Signature: Not signing the certificate can render it ineffective. The authorized individual must provide their signature to validate the document.

  4. Omitting State Registration Numbers: Failing to include the required state registration or seller's permit numbers for each applicable state can lead to complications during audits.

  5. Using the Certificate for Non-Eligible Purchases: This certificate should only be used for qualifying purchases. Using it for taxable services or items not intended for resale can result in penalties.

  6. Not Specifying the Exemption Reason: In states that require it, not indicating the reason for the exemption can lead to the certificate being rejected during audits.

  7. Failure to Update Blanket Certificates: Blanket certificates should be updated periodically. Not doing so may lead to outdated information being on file.

  8. Not Providing the Certificate in a Timely Manner: Delivering the certificate after the purchase can result in the seller being obligated to collect sales tax.

  9. Ignoring State-Specific Regulations: Each state has its own rules regarding the use of this certificate. Not adhering to these regulations can lead to complications or penalties.

Documents used along the form

The California Sales Tax Certificate form is an essential document for businesses engaged in buying and selling goods. It allows buyers to purchase items without paying sales tax, provided the items are intended for resale. In addition to this certificate, several other forms and documents are commonly used in conjunction with it. These documents help facilitate tax compliance and ensure that both buyers and sellers adhere to state regulations.

  • Seller's Permit: This document is issued by the California Department of Tax and Fee Administration (CDTFA) and allows businesses to collect sales tax from customers. It is essential for retailers and wholesalers who sell tangible goods.
  • Resale Certificate: A specific type of exemption certificate that allows a buyer to purchase goods tax-free if those goods are intended for resale. It is crucial for businesses that frequently buy inventory for resale.
  • Exemption Certificate: This certificate is used when a buyer claims an exemption from sales tax for specific types of purchases, such as items used in manufacturing or for certain nonprofit organizations. It must be completed and provided to the seller.
  • Sales Tax Return: Businesses must file this return periodically to report the sales tax they have collected and remit it to the state. It outlines the total sales, taxable sales, and the amount of tax due.
  • Purchase Order: This document is generated by the buyer and serves as a formal request to the seller to provide goods or services. It often includes terms of sale and may reference the sales tax certificate.
  • Invoice: After a sale, the seller issues an invoice to the buyer, detailing the items sold, their prices, and the applicable sales tax. This document serves as a record of the transaction for both parties.

Understanding these documents is crucial for businesses operating in California. They help ensure compliance with tax regulations and facilitate smooth transactions between buyers and sellers. Proper use of these forms not only aids in tax reporting but also protects businesses from potential tax liabilities.

Similar forms

The California Sales Tax Certificate form shares similarities with the Uniform Sales and Use Tax Exemption Certificate. This document is designed for use across multiple states, allowing buyers to claim exemption from sales tax when purchasing items for resale. Both forms serve the same fundamental purpose: to provide proof that a transaction is exempt from sales tax due to the nature of the purchase. Buyers must fill out their information and certify that the items will be resold in the regular course of business. The key difference lies in its multijurisdictional acceptance, making it versatile for businesses operating in several states.

Another document comparable to the California Sales Tax Certificate is the Resale Certificate. This certificate is specific to individual states and allows buyers to purchase goods without paying sales tax when the items are intended for resale. Like the California form, the Resale Certificate requires buyers to provide their business details and affirm that the purchases will not be used for personal consumption. The primary distinction is that the Resale Certificate is often tailored to the regulations of a single state, whereas the California form is designed for broader applicability.

The Exemption Certificate is also similar to the California Sales Tax Certificate. This document allows certain buyers, such as non-profit organizations or government entities, to purchase goods tax-free. Both forms require the buyer to provide information and certify their eligibility for tax exemption. However, the Exemption Certificate is typically used for specific types of buyers and purchases, whereas the California Sales Tax Certificate focuses on resale transactions.

The Vendor’s Exemption Certificate is another relevant document. It allows sellers to purchase goods without paying sales tax if they intend to resell those items. Like the California Sales Tax Certificate, it requires the seller to provide their business details and affirm the intended use of the purchased items. The difference lies in the focus on the seller's perspective, while the California form emphasizes the buyer's role in the transaction.

The Direct Pay Permit is similar in that it allows businesses to pay sales tax directly to the state rather than having it collected by the seller at the point of sale. This document streamlines the purchasing process for businesses that frequently buy taxable items. While the California Sales Tax Certificate is used to avoid paying sales tax upfront, the Direct Pay Permit allows for a different payment structure, making it easier for businesses to manage their tax obligations.

The Certificate of Exemption is another document that aligns closely with the California Sales Tax Certificate. This certificate is often used by specific entities, such as non-profits, to purchase goods without incurring sales tax. Both documents require the buyer to provide proof of their eligibility for tax exemption. However, the Certificate of Exemption is usually limited to specific organizations, while the California form is broader in scope, catering to various types of buyers.

Lastly, the Sales Tax Resale Certificate is akin to the California Sales Tax Certificate in that it allows businesses to purchase items for resale without incurring sales tax. Both documents require the buyer to declare their intent to resell the purchased items. However, the Sales Tax Resale Certificate is often issued by individual states, which may have different requirements and regulations compared to the California form, designed for use across multiple jurisdictions.

Dos and Don'ts

When filling out the California Sales Tax Certificate form, there are important dos and don’ts to keep in mind. Following these guidelines will help ensure the form is completed correctly and effectively.

  • Do provide accurate information about your business, including the name and address.
  • Do specify the type of business you are engaged in, such as wholesaler, retailer, or manufacturer.
  • Do include your state registration number or seller’s permit number, as required.
  • Do ensure that the certificate is signed by an authorized person, such as an owner or corporate officer.
  • Don’t use the certificate for purchases that do not qualify for resale exemptions.
  • Don’t forget to keep a copy of the completed certificate for your records.
  • Don’t leave any required fields blank; incomplete forms can lead to issues.
  • Don’t misuse the certificate; ensure it is used in accordance with state regulations.

Misconceptions

Understanding the California Sales Tax Certificate form can be challenging due to common misconceptions. Here are four prevalent misunderstandings:

  • This certificate is valid for all types of tax exemptions. Many believe that the California Sales Tax Certificate can be used for any tax exemption. However, this certificate is specifically a resale certificate. Its use is limited to purchases made for resale in the regular course of business, not for other types of tax exemptions.
  • Buyers can use this certificate without any restrictions. Some people think that once they fill out the certificate, they can use it freely. In reality, the buyer must ensure that the purchases are genuinely for resale. If the property or service is used or consumed, the buyer may be liable for the sales tax.
  • All states accept this certificate equally. There is a misconception that this certificate is universally accepted across all states. In fact, each state has its own rules regarding the acceptance of resale certificates. Some states may require additional information or have specific limitations on what can be purchased tax-free.
  • The seller is not responsible for verifying the certificate. It is often assumed that the seller can accept the certificate without any scrutiny. However, sellers are required to exercise due diligence. They should ensure that the goods or services being sold are typically resold or incorporated into other products. Failure to do so may result in the seller being held liable for unpaid sales tax.

Key takeaways

  • The California Sales Tax Certificate is specifically a resale certificate, meaning it is used primarily for purchases intended for resale in the regular course of business.

  • Both the buyer and seller share the responsibility of ensuring the proper use of the certificate under applicable laws, which may change over time.

  • Buyers must provide their name, address, and state registration number on the certificate to validate their claim for exemption.

  • It is crucial for sellers to retain a properly executed certificate on file; without it, they are obligated to collect sales tax for transactions.

  • If the purchased items are later used in a way that incurs sales tax, the buyer is responsible for paying that tax directly to the appropriate taxing authority.

  • This certificate remains valid until it is canceled in writing by the buyer or revoked by the state or city, ensuring ongoing compliance.

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