General Information on California State Sales Tax
Virtually every type of business must obtain a State Sales Tax Number. If your business sells products on the internet, such as eBay, or through a storefront, and the item is shipped within the State of California, sales tax must be collected from the buyer and the sales tax must be paid on the collected tax to the State of California.
Depending on the type of business and the amount of revenue, the California State Sales Tax collected must be paid either monthly or quarterly.
Items shipped within State of California are taxable. Items shipped out of the State of California are usually not subject to California State Sales Tax if annual revenues are less than four million dollars.
Purchases for Resale in California
You are able to purchase items without paying California State Sales Tax. When you buy an item for resale, you purchase the item without paying California State Sales Tax. Items must be for resale or qualified business use. If you purchase an item from a wholesale organization, or even another retailer, and are reselling the item, in most situations, you will be exempt from paying California State Sales Tax.
Almost every wholesale company will require a sales tax number before selling an item or product for resale use. The same applies to opening most commercial resale accounts.
Wholesale trade shows and merchandise marts usually require a state sales tax identification number in order to allow your business to participate.
Online Application for a California State Sales Tax Number
For fastest processing, please have the following ready to complete the online application for a California State Sales Tax Number.
- Business Name, Address, & Phone Number
- Description of Business
- Responsible Party ( Usually Business Owner ) Information
- Payment Information