PR: Understanding the California Resale Certificate (03-30-24)
- NICOLE HONE |
- 6 steps |
- 14 seconds
When a customer completes the California Resale Certificate, they provide us with important information that allows us to exempt sales taxes. It is essential that each section of the certificate is properly filled out to ensure accuracy and compliance. Let's take a closer look at how to correctly complete each section and address some common mistakes that are often made.
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**Section 1: Seller's Permit**
Although customers often mistakenly believe that forwarding their Seller's Permit is sufficient, it is important to note that the information on the Seller's Permit only pertains to **Line 1** of the certificate. The **Seller's Permit number** must be accurately entered in this section, as it helps to identify the customer as a seller who is eligible for tax exemption.
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**Section 2: engaged in the business of selling**
In this section, customers need to indicate the specific nature of their business. Whether they are selling products, services, or any other type of goods, it is essential to clearly state their business activity.
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**Section 3: This certificate is from the purchase from** “Southern Counties Lubricants LLC”
Customers must clearly mention the name of the seller from whom they are making the purchase. In our customer cases, it is our company **"Southern Counties Lubricants LLC."** This information establishes the connection between the purchaser and the seller, ensuring that the certificate is appropriately attributed.
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**Section 5: Description of Property**
Here, the customer provides the description of the property being purchased for resale. It is important to be specific in description. To assist with this, our company provides a list of options for customers to select from on the certificates forms we provide.
**IMPORTANT:** If reselling **fuel**, customer must **also** provide their **SG permit#** on the **"Fuel resellers" section**.
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**Bottom section:**
The bottom section of the certificate requires additional information to ensure validity. The **Name of Purchaser** field is to reflect the customer's company name. The **Signature of Purchaser** field needs to be the signature of the person completing the form. The **Name and Title** fields is the person signing the form indicating their official role in the company. The **Address of Purchaser** must match the business address registered with the California Department of Tax and Fee Administration (CDTFA). A valid **Phone Number** is included for contact purposes. The **Date** must be filled out and be dated on or before the date of purchasing the product. Purchases made prior to this date will not be exempted from sales tax.
**IMPORTANT:** It is vital to ensure that the information provided on the Seller's Permit number, business name, and address matches the details registered with the California Department of Tax and Fee Administration (CDTFA) site should reflect accurate and valid information, and the date on the certificate should be on or prior to the resale certificate's date. These measures ensure the authenticity and reliability of the certificate.
Accounts Coordinator verifies this on CDTFA Online Services ([ca.gov](http://ca.gov)) website
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Here is a full image of a California Resale Certificate:
