So you’re not collecting “sales tax” from a retail customer? Check them before you wreck yourself!
The retailer MUST have a valid CALIFORNIA resale certificate to exclude the sale from being a taxable sale. A resale certificate from another state will not work. (General rule) I am currently working to resolve a client issue where additional sales are being proposed as taxable sales that could result in additional sales tax due of over $500,000.
Verification is available to help you determine if a seller's permit account number included on your customer's resale certificate is currently valid. As a seller, you are responsible for ensuring the resale certificate is properly completed. Please refer to Regulation 1668, Resale Certificates.
Click here to verify the California sellers permit is valid: