No, a Delaware resale certificate typically cannot be used to purchase products tax-free in California. California generally requires businesses to register for an in-state seller’s permit to issue a valid resale certificate for tax-exempt purchases.

Why Out-of-State Certificates Are Not Accepted in California

1. In-State Registration Requirement

California’s tax laws mandate that resale certificates must be issued by businesses holding a California seller\’s permit. This ensures that the state can track and collect sales tax when goods are sold to the end consumer.

2. Delaware’s Unique Tax Status

Since Delaware has no sales tax, its resale certificates often lack the provisions required by states like California that enforce stricter sales tax regulations.

What Should You Do?

Register for a California Seller\’s Permit:

If you frequently purchase goods in California for resale, it’s advisable to apply for a seller’s permit with the California Department of Tax and Fee Administration (CDTFA). This will allow you to issue a valid resale certificate for tax-free purchases within the state.

Learn more

• California Resale Certificate for U.S. Business.
• US Resale Certificate Services.

Need Help?

Navigating sales tax requirements across states can be complex, especially for nonresidents. Business Globalizer can assist you in obtaining a California seller\’s permit or a resale certificate tailored to your business needs.

By working with Business Globalizer, you can ensure compliance with California’s tax laws and avoid unnecessary tax payments.