|
This form is used to register your business by mail with the sales tax authority (State Board of
Equalization). You will receive a seller's permit, which allows you to sell goods and requires
you to collect sales tax if you sell to the final user. The permit has a resale number which
can be used to waive sales tax on items you buy to make your product
(see sales tax exemption form).
|
|
| Legally, the seller is responsible for paying sales tax, but
may be "reimbursed" by your customers (the purchaser). In practice, almost all sales tax is
reimbursed, therefore most people think that it is the purchaser's obligation. We will continue
this "myth" in our instructions because it is easier to understand. However when you talk to
the Board of Equalization or read their pamphlets, they will state that you are responsible for
paying the tax…collecting it from your customers (i.e. getting reimbursed) is your option.
WARNING: This is a mail-in registration form which takes two to three weeks for processing.
If you need a seller's permit quickly, many Board of Equalization offices offer a same day
service for people who go in-person. |
| Forms and information | |
BT-400 Application for Seller's Permit
Collecting Sales Tax |
|
| Who uses this form? | |
Any business which sells tangible products. Complete this form even if you will not be
collecting sales tax (i.e. you just sell wholesale). Businesses which exclusively sell
services should not fill out this form. |
|
| Who collects sales tax? | |
Only businesses that sell to the end user. Businesses selling wholesale will have their
customers sign sales tax exemption
certificates in lieu of paying sales tax. Note: Wholesale
businesses really benefit from complete BT-400, since it costs them nothing, but exempts them
from paying sales tax on items used in their product. |
|
| When to file | |
No earlier than 30 days prior to selling. |
|
| Approximate cost | |
$0 if you only sell wholesale (ie. your purchaser will sell the item to the end user).
If you sell retail, generally no deposit is required. The major exceptions are if you have
previously had a permit and had multiple late payments, bounced checks, your permit
was revoked, or had other unsatisfactory circumstances. |
|
| How to complete the form | |
Complete both sides of this form. You will need to know:
- Name, address, social security number, drivers license number, and a personal reference (name, address and phone)
for all corporate officers.
- Bank
- Accountant or person who will do your books
- Landlord and his/her address(if any)
- Merchant card processor (if you are accepting credit cards)
- Web address
- Key California-based suppliers
- An estimate of monthly sales
- Your state alcohol permit number (if applicable)
In the estimate of monthly sales, the form asks you to estimate the sales subject to sales tax. Include all
your sales unless
- You expect the buyer will have a resale number and purchase your goods for resale
- Sales not subject to sales tax (services and exempt items described in
Collecting Sales Tax)
- Sales you will make out-of-state
All corporate officers must sign this form.
|
| Ask for pamphlets | |
Be sure to visit
http://www.boe.ca.gov/sutax/staxpubsn.htm to download any publications that relate to your business.
|
| More than 1 location? | |
You do not need another permit. The prefix of your sellers permit will be changed, and the Board of Equalization may request a deposit. |
|
| Your responsibilities | |
Remember, you have these responsibilities
- You must keep records for four years of: sales, purchases made for your business, and
deductions you declare on your sales tax returns
- You must file sales tax returns (BT-401) even if you didn't sell anything during the prior period.
- You are responsible for sales tax, even if your purchaser didn't pay you.
- You must contact the Board of Equalization if you move, change ownership, discontinue or sell your business.
|
|
| Questions? | |
Visit www.boe.ca.gov or phone the Board of Equalization
at (800) 400-7115. Mail the completed form to the office nearest you:
Click here for the Board of Equalization Offices. |
|
|
|
