California Sales Tax for Veterinarians - Qualified Purchaser

 A “qualified purchaser” must register with CDTFA and annually report and pay use tax directly to them, as required by Revenue and Taxation Code section 6225.


If you are not required to hold a seller’s permit and are not currently registered with CDTFA for use tax purposes, you may be required to register as a “qualified purchaser.”

Prior to January 1, 2024, a “qualified purchaser” was defined as a person that received at least $100,000 in gross receipts from their business operations per calendar year and was not otherwise required to be registered with CDTFA.

Gross receipts are the total of all receipts from both in-state and out-of-state business operations.

Beginning January 1, 2024, the definition of a “qualified purchaser” was revised to eliminate the requirement that the person receives at least $100,000 in gross receipts per calendar year from business operations.

It instead requires that the person makes more than $10,000 in purchases subject to use tax (excluding vehicles, vessels, or aircraft) per calendar year if the use tax imposed on those purchases has not otherwise been paid to a retailer engaged in business in this state or authorized to collect the tax.

This change is effective from January 1, 2024, through December 31, 2028.

On January 1, 2029, that definition of a “qualified purchaser” will revert to the person receiving at least $100,000 in gross receipts per calendar year from business operations.



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

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