California Sales Tax for Interior Designers - Purchases for Resale

When you are the retailer of an item, you may buy that item for resale without paying an amount for sales and use tax to your vendor.


You may also buy for resale those materials you physically incorporate into items you sell, such as fabric.
To make purchases of this type, you must give the seller a properly completed resale certificate.

You should not issue a resale certificate when you are buying a product that you will use rather than sell, use before you sell it, or use for a personal purpose.

You may not furnish resale certificates to construction contractors for work they perform on real property.

If you know at the time you make a purchase that you will not resell the merchandise you are buying, you should not use a resale certificate for that transaction.

In addition, it is not legal for you to give out your permit number to any other party, including your clients, for their use at retail stores or furniture marts to make purchases without paying sales tax.


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

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