Frequently Asked Questions
Who must have a permit?
You are generally required to obtain a California seller’s permit if you sell or lease goods and merchandise in this state. You may apply for a temporary seller’s permit if you make sales of a temporary nature (for one month or less). If you intend to make sales over a longer period of time, you should contact the Board and obtain an application for a regular seller’s permit.
A seller’s permit allows you to sell items at the wholesale or retail level. You cannot legally sell taxable items in California until you have been issued a seller’s permit.
Do I need more than one permit?
No. If you make temporary sales at more than one location, you must attach a list to your application that includes the address and the dates you will be selling for each location. This requirement applies to retailers as well as wholesalers.
Is there a charge for a permit?
No. However, we may require a security deposit. Security deposits are used to cover any unpaid taxes that may be owed at the time a business closes.
Is information regarding my account subject to public disclosure?
Your records are generally covered by state laws that protect your privacy. However, some records are subject to public disclosure, such as the information on your seller’s permit, names of owners or partners, your business address, and your permit status. See also the disclosure information on the back page.
Why do you need to verify my driver license number?
This is required to ensure the accuracy of the information provided and to protect you against fraudulent use of your identification.
What are my rights and responsibilities as a seller?
When you obtain a seller’s permit, you acquire certain rights and responsibilities. For example,
You may purchase property for resale with- out paying tax to your supplier. By providing the vendor with a completed resale certificate, you are not required to pay sales tax on tangible personal property you purchase for resale. You cannot use a resale certificate to purchase property for your own use (even if you plan to sell the prop- erty after you have used it).
You must keep records to substantiate your sales, deductions reported on your returns, and any purchases you have made for your business. You must keep your records for four years.
You must file a return for your sales and purchases on or before the last day of the month following the close of your reporting period. You must file your tax return even if you have no tax to report.
You must pay the sales tax due on your retail sales in California. However, you may be reimbursed by collecting the amount of tax from your customers.