California Sales Tax for Interior Designers - Purchases subject to Use Tax

If you purchase products without paying tax and use the merchandise for a purpose other than resale, you must generally pay use tax with your sales and use tax return.

The use tax rate is the same as the sales tax rate for your location.

Common examples of situations where you may owe use tax include:

  • Giving an item purchased for resale to a family member, friend, or client.
  • Using in your home or business an item purchased for resale.
  • Using in your business office supplies, tools, or equipment you purchased without paying tax.
  • Using, storing, or giving away items purchased from an out-of-state seller who did not collect California sales or use tax on your purchase.

To report your use tax liability, enter the purchase price for the items on your sales and use tax return as Purchases Subject to Use Tax.


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

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