California Tax Service Center

Resale Certificates

When purchasing items for resale, registered sellers may avoid the sales tax by giving their supplier adequate documentation in the form of a resale certificate. A resale certificate indicates the item was in good faith that the purchaser would resell the item and report tax on the final sale.

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 certificate is available online. The certificate may be in any form so long as it contains:

  • The name and address of the purchaser.
  • The purchaser’s seller’s permit number (unless they are not required to hold one1).
  • A description of the property to be purchase.
  • An explicit statement that the described property is being purchased for resale.
  • The date of the document.
  • The signature of the purchaser or someone approved to act on his or her behalf.

For more information, please see Sales for Resale (Publication 103).

1 Some businesses are not required to hold a seller’s permit (for example, a business may not make sales in this state or it may not sell property that is subject to sales tax when sold at retail). If you are selling to a purchaser who is not required to hold a seller’s permit but who wishes to make a purchase using a resale certificate, the purchaser must indicate on the certificate that he or she does not hold a seller’s permit and why a permit is not required.