Resale Certificate Information

 

Resale Certificate Information

 

There are three Cannabis taxes. 1. Cultivation 2. Excise 3. Sales/Use Tax

THIS IS ABOUT Sales/Use Tax

 

WE ARE NOT ACCOUNTANTS OR LAWYERS.  TALK TO THEM ABOUT THIS, AND YOUR QUESTIONS.

 

A business which is registered for sales and use tax can use a resale certificate only when the merchandise being purchased is to be resold by the business.

 

Why you need a resale cert:

If you are selling Cannabis or related products and you do not have a resale certificate on file from the person that is buying from you, then you should have collected sales tax (or the distributor on your behalf) and paid it to the state.  Always get the buyer’s license#, permit#,  prop215 and resale cert.  If you don’t get the resale cert of the buyer, then you will owe sales tax.

 

If you are buying Cannabis or related products, then you need a license, permit and resale cert.  If you do not have a resale cert, you will owe sales and or use tax.  It is important to provide copies or your license, permit and resale cert to the cultivator or distributor.

 

A business which is registered for sales and use tax can use a resale certificate only when the merchandise being purchased is to be resold by the business.

 

Documentation to get your resale cert:

https://www.boe.ca.gov/elecsrv/ings.htm

 

Where to get your resale cert:

https://services.cdtfa.ca.gov/ereg/index.boe



You can pay online, but what and to whom do you pay?  Probably talk to your accountant about this.

https://services.cdtfa.ca.gov/ereg/index.boe

 

Online Payment:

http://www.cdtfa.ca.gov/services/




Last updated on : 24/11/2017