The California Department of Tax and Fee Administration (CDTFA) is extremely strict on Sellers when it comes to waiving Sales Tax, so we also must be very cautious and exact in our Resale Certificate requirements.
The California Department of Tax and Fee Administration (CDTFA) requires specific wording to be used on the Resale Forms we receive and keep on file for our customers, and there are stringent rules we must follow before we can remove Sales Tax from an order.
When you print out our Resale Certificate, you will find a number of areas for you to fill out.
We are providing the following guidance and instructions so you will be able to fill out the California Resale Certificate in the manner we (per the CDTFA) require.
Section 1: Please write your Resale Permit Number, as shown on your Resale License.
Section 2: Please provide a description of the general type of products your business sells.
NOTE: Per the CDTFA, as a Seller, we must always take note of the general character of the purchaser's business. If the nature of the business is such that the property purchased would not normally be resold in the normal course of that business, we must question the use of the certificate. For instance, if you are in the restaurant business, the CDTFA would require us to realize it would be unlikely you are in the business of reselling plumbing products; therefore, we could not accept such a Resale Certificate to remove Sales Tax from any orders placed for our products.
Section 3: If you download our California Resale Certificate, and start with a blank, please enter our business name as Plumbingsupply.com.
Section 4: Information only, nothing to be filled in.
Section 5: This is where you will describe the types of products you will be purchasing from us.
Here, there is also certain wording required. We've found the best and most encompassing description to enter for Section 5 would be: "Plumbing supplies, related products, and consumable items for resale". This description would cover any of the products we sell, and so would provide you with complete freedom for any future orders placed with us.
The description cannot be too general; for instance, "Plumbing supplies for resale" is not specific enough. On the other hand, if the description is TOO specific, then that will limit the types of products you will be able to purchase from us for resale; for instance, if you write simply "Compression fittings for resale" because that's what you intend to purchase from us at the time of your order, then we could not remove the Sales Tax from any future order that was NOT for compression fittings. Most importantly, your description MUST state the products you're purchasing are "for Resale".
Section 6: Please provide and fill-in the following information:
- The name of the purchaser as it appears on the Resale Permit (this should match the name on your order)
- The signature of the purchaser, their employee, or an authorized representative of the purchaser
- The printed name of the person who signed the Certificate
- The address as shown on the resale permit for the purchaser
- The contact telephone number for the purchaser
- The date our Resale Certificate was filled out.
On the last line, you can also provide the order number for which you are initially providing the Resale Certificate, although we will keep your Certificate on file for future orders.
Please click this example for more information on how to fill out your resale certificate.
Please be aware we are required to obtain new Certificates from our customers every two or three years, so we may eventually ask you to fill out a new form in the future.
