What is a Seller's Permit California?
Every individual or a business doing business in the state of California is required to collect sales tax on taxable items and services from the customers.
How would I know if the item or service is taxable?
You can check the list of taxable items and services on the California State Board of Equalization website.
What is a Use Tax in California?
- It is payable on retailer purchases from out of state vendors, including foreign merchants, who do not collect tax on their sales.
- It is also applied to the use, storage, or other consumption items in California. It is originally put in place to protect California merchants from unfair out-of-state competition, it also applies to certain purchases made within the state.
- It also applies on the Purchases of vehicles, vessels, mobile homes, and aircraft from sellers who do not hold seller’s permits.
File Sales Tax Registration Online
Seller's Permit and Use Tax in the State of California can be applied electronically and you get the instant sales tax license upon completing the application online.
California Seller's Permit for an Out of State Entity
You are required to register a foreign entity in the state of California to get a sales tax number otherwise you can apply for a sales tax number under your social security number as a sole proprietorship.
You must obtain a seller's permit for the state of California if you:
- Are engaged in business in California
- Intend to sell or lease tangible personal property that would ordinarily be subject to sales tax if sold at retail (this includes wholesalers, manufactures and retailers.)
- Will make sales for a temporary period, normally lasting no longer than 90 days at one or more locations (for example, fireworks booth, Christmas tree lots, garage sale)
Seller's Permit to buy an existing business
A new seller's permit should be applied when you buy an existing business, because a seller's permit is not transferable to the new owner.
Cancellation of Seller's Permit
A seller's permit must be surrendered to the California Board of Equalization along with the final returns, when you are closing business.
How to apply for a California Sales Tax Number?
You will provide the following information to Obtain a California Sales Tax Number from the California State Board of Equalization.
- Name of the business or your legal name
- Business description
- Business address PO Box is not acceptable
- All owners' information, including name, address, social security number (not applicable for non US resident) and date of birth
- Ownership percentage if more than one owner
- Employer identification number if incorporated as a Corporation or an LLC
- Estimated monthly gross sales
- The state may reject your application, if you owe sales tax to any of your prior business
- You can request to the state for a duplicate copy, if you have lost your sales tax certificate
- You will surrender the sales tax certificate and notify the state if planning to close the business
- Purpose to Register Sales Tax Permit California
- Bank Name and address
- One supplier name and address
- One reference (Required for sole proprietorship and partnership)
Due dates for filing sales and use tax returns in the state of California
- Sales tax period January-March is due on April 30.
- Sales tax period April-June is due on July 31st.
- Sales tax period July-September is due on October 31st.
- Sales tax period October-December is due on January 31st.
If the due date falls on a weekend or state holiday, the filing can be submitted to the next business day.
Obligation of Seller's Permit Holder
- File sales tax returns and pay any taxes or fees, you may owe on time.
- Managing your sales with proper record keeping to verify that you have properly paid the tax or fee.
- Post seller's permit on business place at the prominent place
- Charge sales and use tax according to the BOE tax cut. You can download sales tax rate chart from the BOE website.
- Keep your information current on your seller's permit
Verification of Seller's Permit Account Number
You can verify the seller's permit account number online that it is existed or valid, because you are obligated to make sure that you have full filled all requirements to posses sellers permit as a seller.
Apply for a Temporary Seller Permit
A temporary seller's permit can also be obtained for 90 days from the BOE California.
