YOUR CALIFORNIA SELLER’S PERMIT - Your Rights and Responsibilities Under the Sales and Use Tax Law

Sep 19, 2026

Guide issued by the California Department of Tax and Fee Administration to help sellers understand obligations under the Sales and Use Tax Law. Explains who must obtain a seller’s permit, including various business types and entities, and when temporary permits are required. Defines “engaged in business” and “generally subject to sales tax,” with examples distinguishing taxable retail sales and taxable service/labor charges from non-taxable repair work and reconditioning of existing property.

LanguageEnglish

CategoryLetters

FormatPDF

Pages30

Reading Time11 min

AccessFree to download

A Message from the Director

Obtaining a Seller’s Permit

Who must get a seller’s permit?

What does “engaged in business” mean?

What is meant by “generally subject to sales tax?”

YOUR CALIFORNIA SELLER’S PERMIT Your Rights and Responsibilities Under the Sales and Use Tax Law CALIFORNIA DEPARTMENT OF TAX AND FEE ADMINISTRATION A Message from the Director It is a pleasure to welcome you to the company of more than one million businesses that are registered with the California Department of Tax and Fee Administration (CDTFA) . As a seller, you will be reporting taxes to us on a regular basis and may have questions regarding your responsibilities under the Sales and Use Tax Law. Our website, [www.cdtfa.ca.gov](www.cdtfa.ca.gov), contains a wealth of information and is a valuable resource for any questions you may have. You will find a variety of services there, including our electronic tax return filing services. For more information, see How do I pay the taxes that are due?. Our team members are also available to assist you and can be reached by calling our Customer Service Center at 1-800-400-7115 (TTY:711) or by visiting your local CDTFA office. See the For More Information page for details. We wish you success with your business and encourage you to contact us if you need assistance. We also welcome your suggestions for improving our services. Sincerely, Trista Gonzalez Director California Department of Tax and Fee Administration The mission of CDTFA is to make life better for Californians by fairly and efficiently collecting the revenue that supports our essential public services. Chapter Page Obtaining a Seller’s Permit 6 Applying Tax to Your Sales and Purchases 11 Reporting Taxes 15 Online Services 20 Buying, Selling, or Discontinuing a Business 22 Using a Resale Certificate 24 Keeping Records 26 For More Information 30 OBTAINING A SELLER’S PERMIT Who must get a seller’s permit? You must get a seller’s permit if you: • Are engaged in business in California, and • Intend to sell or lease tangible personal property that would ordinarily be subject to sales tax if sold at retail. The requirement to get a seller’s permit applies to: • Corporations • Individuals • Limited Liability Companies (LLCs) • Limited Liability Partnerships (LLPs) • Limited Partnerships (LPs) • Partnerships • Married Co-ownerships • Registered Domestic Partnerships • Organizations • Trusts • Estates • Joint Ventures • Receiverships/Fiduciaries • Local, State, or Federal Governments Both wholesalers and retailers must apply for a permit. If you do not hold a seller’s permit and plan to make sales during temporary periods, such as Christmas tree sales or rummage sales, you must apply for a temporary seller’s permit. Such permits are normally issued to selling operations lasting no longer than 30 days at one location. Additional information is available on our website at [https://cdtfa.ca.gov/taxes-and-fees/faqseller.htm](https://cdtfa.ca.gov/taxes-and-fees/faqseller.htm), or you may contact our Customer Service Center at 1-800-400-7115 (TTY:711), Monday through Friday, 7:30 a. m. to 5:00 p. m. (Pacific time), except state holidays. What does “engaged in business” mean? You are engaged in business in California, even if you are located out of state, if you: • Maintain, occupy, or use, directly or indirectly, or through a subsidiary or agent, a permanent or temporary office, place of distribution, sales or sample room, warehouse or storage place, or other physical place of business in California, or • Have a representative, agent, salesperson, canvasser, independent contractor, solicitor, or any other person operating in California on your behalf, including a person operating in California under your authority or under the authority of your subsidiary, for the purpose of selling, delivering, installing, assembling, taking orders for tangible personal property, or otherwise establishing or maintaining a market for your products, or • Receive rental payments from the lease of personal property that is located in California, such as leases of

FAQs

Who must obtain a California seller’s permit?

You must get a seller’s permit if you are engaged in business in California and intend to sell or lease tangible personal property that would ordinarily be subject to sales tax if sold at retail.

What does “engaged in business” mean for a business located out of state?

You are engaged in business in California if you maintain or use business locations or sales activities in California, operate through representatives or agents there, receive certain rental payments for personal property located in California, or meet specified sales thresholds.

Are all service and labor costs taxable?

No. Some service and labor costs are taxable when they are part of the sale of tangible personal property. Repair labor that does not create tangible personal property is generally not taxable, since it only reconditions existing property.

Sep 19, 2026

Upload by Arica Lee