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 Resale Certificate Tips (Publication 42), and 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.