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Form CDTFA-230 California Resale Certificate - California
What Is a California Resale Certificate?
Form CDTFA-230, California Resale Certificate , is a legal document a buyer presents to a seller from whom the buyer purchases various merchandise with the intent to resell it later in the usual course of business. The document was released by the California Department of Tax and Fee Administration (CDTFA) . The latest version of the form was issued on , with all previous editions obsolete.
Alternate Name:
- California Resale Certificate Form.
How to Get a Resale Certificate in California?
In most cases, before you use the California Resale Certificate Form, you need to obtain a seller's permit. It is a necessary document to have if you are engaged in any type of business in the State of California and you intend to sell goods that would ordinarily entail sales tax. The requirement to have a seller's permit applies to individuals, partnerships, corporations, and limited liability companies. Once you possess a permit, it is possible to complete a CDTFA-230 Form to purchase items for resale.
A California Resale Certificate fillable form is available for download below.
How to Fill Out a California Resale Certificate?
The certificate allows the buyer to avoid paying sales taxes twice - instead of the buyer paying this tax, the buyer will charge sales tax to their customers on the final price of the goods. Resale certificates are commonly used by restaurants, bars, convenience stores, mini-marts, and beauty shops.
Follow these steps to fill out the California Resale Certificate verification:
- Indicate your seller's permit number. Note that certain businesses are not required to obtain a permit. If you sell only in foreign and interstate commerce or only sell tax-exempt products (for example, raw vegetables and fruits), write down on your resale certificate that you do not have a permit and add a reason why you are not required to obtain it;
- Write down which type of tangible personal property your business is selling;
- Name the vendor who sells you the merchandise;
- Confirm your intention to resell the items listed in the form in the regular course of your business operations. Certify you will not make any use of the items other than display and demonstration while holding them for sale;
- Describe the goods to be purchased under this certificate for resale. List the particular items purchased for resale and record their general description;
- Understand that if you will not resell the purchased items you may be found guilty of a misdemeanor and subject to additional taxes and penalties. Additionally, you might lose your CDTFA seller's permit. It is forbidden to complete this form when buying products you will use rather than sell, use before you sell them, or hold as an investment for sale in the future;
- Enter your name and sign the document. You are required to write down the printed name and title of the individual who signs the certificate, the address of the purchaser, telephone number, and the actual date of signing.
Give the resale certificate to the seller at any time prior to, or upon, receiving the sold merchandise. The seller will verify the validity of the permit using the CDTFA official website, calling the automated toll-free number at 1-888-225-5263, or using the free mobile application issued by the CDTFA. Sellers are required to retain copies of all resale certificates and purchase orders issued with these certificates in order to support the sales for resale.
