However, labor costs for making repairs resetting a diamond, for example are not taxable since they do not result in the creation of tangible personal property. You are only repairing or reconditioning existing property. Likewise, labor charges to install or apply property which has been sold is not ordinarily subject to sales tax note : the labor charge should be stated separately on the bill.
There are many rules governing what is taxable. You are encouraged to contact our Customer Service Center. The system guides you through the process and will assist you with the types of permits you may need for your business.
You will be asked to furnish the required information when registering for a permit. If you have a business partner, or if the business is managed by corporate officers or limited liability company managers, members or officers, those persons will also be asked to furnish some of the required information. While most of the information you provide to the CDTFA is confidential, some is subject to public disclosure, such as the information on your seller's permit and the closeout date of your business, if applicable.
Under certain conditions, your account information, including underreporting and outstanding liabilities, may be shared with the other government agencies. If you have more than one place of business located on different premises , you may need a separate permit for each location.
In some instances it is possible to obtain a consolidated permit for multiple business outlets. At the time you apply for a permit, be sure to provide information for all business locations so that the CDTFA will issue the correct type of permit.
However, the CDTFA may require a security deposit to cover any unpaid taxes that may be owed if, at a later date, the business closes. The amount of the security will be determined at the time you apply.
Your permit is valid only as long as you are actively engaged in business as a seller. As a seller, you may also accept resale certificates from others who wish to purchase items for resale. The certificate may be in any form, but a blank resale certificate is available online.
The certificate may be in any form so long as it contains:. For more information, please see Sales for Resale Publication Each purchase order must then specifically state whether or not the property covered by the purchase order is purchased for resale. The purchase order must also include the phrase "for resale" or other terminology described above to specify that the property is purchased for resale. If each purchase order is not specific, or is not issued timely, as explained below, it will be presumed that the property covered by that purchase order is subject to tax.
If the purchase order includes both items to be resold and items not for resale, the purchase order must specify which items are purchased for resale and which items are purchased for use. For example, a purchase order issued for raw materials for resale and also for tooling used to process the raw materials, should specify that the raw materials are purchased for resale and that the sale of the tooling is subject to tax.
A seller should retain copies of all resale certificates and any purchase orders issued with the qualified resale certificates in order to support its sales for resale.
When a seller makes a sale for resale, the seller must obtain a resale certificate from its customer in a timely manner. Timely is considered to be any of the following:. Accepting a resale certificate late does not relieve the seller from liability for the tax.
If we question a transaction and the seller accepted a certificate late, the seller will be required to present other satisfactory evidence to verify that the sale was a nontaxable sale for resale see Regulation , Sales for Resale. Sellers must report their total gross sales for the reporting period on their sales and use tax return. If the seller's total sales include amounts they received from sales for resale, the seller should take a deduction for those amounts on the line set aside for sales to other retailers for purposes of resale.
If the seller doesn't take the deduction, they will pay more tax than they owe. Customer service representatives are available Monday through Friday from a. Pacific time , except state holidays. Selected regulations , forms , and publications that may interest you are listed below. A complete listing of sales and use tax regulations, forms, and publications appears on our website. Publication , Sales for Resale April Sales and Purchases for Resale Valid Resale Certificates Table of General Guidelines Documenting and Reporting Sales Additional Information Sales and Purchases for Resale Sales for resale Purchasers who are engaged in the business of selling tangible personal property may issue resale certificates when purchasing items they will sell in the regular course of their business operations.
Generally, resale certificates are used: When purchasing finished items for resale. When buying materials that will become a physical part of an item that will be held for resale. When purchasing items solely for demonstration or display while holding them for sale in the regular course of business operations.
Purchases for resale should be legitimate It's important for sellers to note the general nature of the purchaser's business before accepting a resale certificate. Property purchased for resale must be described on the resale certificate either by: A list of the particular items to be purchased for resale, or A general description of the type of items to be purchased for resale.
All sales of counterfeit goods are taxable If a person is convicted in trafficking counterfeit goods, then all of their sales and purchases of those counterfeit goods will be considered taxable. Valid Resale Certificates Verifying a seller's permit number on a resale certificate There are two ways to verify that a customer holds a valid seller's permit: Select Verify a permit, license, or account.
A seller can also use this search tool to verify that a permit, license, or account is valid for many programs administered by us, including: Certificate of Registration — Use Tax, Cigarette Retailer License number, eWaste account, etc.
A seller can also call our automated toll-free number at , available 24 hours a day, seven days a week. The seller will need the seller's permit number that they want to verify. Misuse of a resale certificate If a purchaser knowingly issues a resale certificate when purchasing items that they will not resell, they will owe: The amount of tax that would be due had the certificate not been used, and Interest on the tax due computed from the time the item was purchased.
Content of a resale certificate Any document, including a letter, note, purchase order, or preprinted form, can serve as a resale certificate, provided it contains all of the following information: The name and address of the purchaser's business. The purchaser's seller's permit number or an explanation stating why the purchaser is not required to hold a seller's permit.
A description of the property to be purchased. See Repeat customers and customers who use purchase orders. A statement that the described property is being purchased for resale. The document must contain the phrase "for resale. The date of the document an otherwise valid resale certificate will not be considered invalid solely because it is undated.
The signature of the purchaser, purchaser's employee, or authorized representative. Digital signatures Digitally signed resale certificates provided electronically can be considered valid as long as they contain all the essential elements of a valid resale certificate as stated above including the signature of the purchaser, purchaser's employee, or authorized representative.
Specifically, a digital signature can be accepted when it has the following attributes: It is unique to the person using it.
0コメント