As remote sellers (located outside of CA) you may be required to collect sales tax! Check out the Matrix. I know what you’re thinking....how are they gonna know?
Hint: Just ask Amazon.....etc.
New Use Tax and District Use Tax Collection Requirements for Remote Sellers; Operative April 1, 2019
The California Legislature passed Assembly Bill No. (AB) 147 (Stats. 2019, ch. 5). AB 147 requires:
• Retailers located outside of California (remote sellers) to register with the California Tax and Fee Department (CDTFA) and collect California use tax if, in the preceding or current calendar year, the total combined sales of tangible personal property for delivery in California by the retailer and all persons related to the retailer exceed $500,000, and
• All retailers required to be registered with the CDFTA, whether located inside or outside of California, to collect and pay to the CDTFA district use tax on all sales made for delivery in any district that imposes a district use tax, if in the preceding or current calendar year, the total combined sales of tangible personal property in this state or for delivery in this state by the retailer and all persons related to the retailer exceed $500,000.
A person is related to a retailer if they have a relationship with the retailer described in Internal Revenue Code section 267(b) and the related regulations.
This Tax Matrix summarizes the Sales and Use Tax Law and applicable regulations in effect when the matrix was written. However, changes in the law or in regulations may have occurred since that time. If there is a conflict between the text in this matrix and the law, the decision will be based on the law and not on this matrix. We urge you to read the applicable sources included in the matrix or contact us at CDTFA if you need further information.
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