California Sales Tax for Interior Designers - Sales Tax Reimbursement

When you make sales as a retailer, the law allows you to collect from your clients an amount equal to the sales tax you will owe on each sale.


This is known as sales tax reimbursement.

You may add the reimbursement amount to your charges, being sure to itemize the amount on your invoice or receipts (most retailers itemize this charge as sales tax).

Or, you may include the reimbursement in the total price you charge.

If you choose the latter method, you must post a visible sign stating, “All prices of taxable items include sales tax reimbursement calculated to the nearest mill,” or include a similar statement on your sales invoices.


Source: California Department of Tax & Fee Administration (CDTFA)


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