Written and maintained by CASRAI Editorial Board
Last updated
Short answer
A California resale certificate is usually the CDTFA-230 General Resale Certificate, or any written document that carries the elements the California Department of Tax and Fee Administration (CDTFA) lists as required. A buyer gives it to a supplier to buy goods it will resell without paying sales tax on that purchase. A seller’s permit is a separate registration, and the certificate normally cites the permit number. This is general tax information, not tax or legal advice. Sources checked 2026-11-03.
Definition and scope
CDTFA publication 103 treats a resale certificate as a document, not only a form: any document works if it contains the required elements. The CDTFA-230 (REV. 1, 8-17) is the department’s standard form. In it the purchaser certifies that it holds a valid seller’s permit, that it is engaged in selling the type of tangible personal property being bought, and that the property will be resold. The same CDTFA guidance for home-based businesses says a vendor that accepts a valid certificate in good faith and in a timely manner does not owe tax on that sale, and that a certificate should not be used for goods the buyer will use in its business before selling them or for a personal purpose.
For the wider picture, see resale certificates for medical supply distributors, the neighbouring state guide on the New Jersey resale certificate, and tax-exempt certificates for medical supplies.
Required elements of a valid certificate
Publication 103 says a certificate can be any document that has the following. This checklist maps each element to what a supplier looking at a customer’s paperwork would check.
| Element (CDTFA publication 103) | What the supplier looks for |
|---|---|
| Purchaser’s name and business address | Both are filled in on the certificate. |
| Seller’s permit number, or an explanation of why none is required | A permit number, or a written reason the purchaser does not need a permit. CDTFA states a purchaser is not required to hold a seller’s permit to issue a valid resale certificate. |
| Description of the property being purchased | The goods are described. |
| The words “for resale” | CDTFA says “nontaxable” or “exempt” wording is not acceptable. |
| Date | CDTFA says an otherwise valid certificate is not invalid solely because it is undated. |
| Signature of the purchaser, an employee or an authorized representative | Signed by one of those three. Digital signatures are valid when Government Code section 16.5 is met and all elements are present. |
The CDTFA-230 itself also asks for the vendor’s name, the signer’s title, printed name, address and phone number.
Seller’s permit vs resale certificate: how to get a seller’s permit in California
The two documents come from different parties. The seller’s permit is a registration the business holds with CDTFA; the CDTFA’s home-based business guidance points new businesses to its “Register for a Permit, License, or Account” service. The resale certificate is something the purchaser writes and signs for each supplier, citing that permit number. Because the CDTFA-230 certifies that the purchaser holds a valid seller’s permit, a buyer who needs the standard form normally registers first. Confirm current fees and steps with CDTFA through that registration service. For how the two documents differ in general, see resale certificate vs seller’s permit, and for the licensing question beyond tax, how to get a wholesale license.
Verifying a customer’s permit
CDTFA publication 103 names two ways to verify a permit: the CDTFA “Verify a permit, license, or account” online tool, or the department’s automated line at 1-888-225-5263, which it states is available 24 hours.
Resale versus own use for lab and medical supplies
The certificate covers purchases the buyer will resell in the regular course of its business. Paragraph 4 of the CDTFA-230 says the purchaser will resell the property before any use other than demonstration and display; if it is used otherwise, the purchaser says “I will owe use tax based on each item’s purchase price.”
| Purchase | Resale certificate? | Basis |
|---|---|---|
| Items bought to be sold on to customers | Yes, if the other elements are present | CDTFA-230 paragraph 4; publication 103 |
| Items used in the business before resale, or for a personal purpose | No | CDTFA home-based business guidance |
| Items used before resale, other than demonstration and display | Use tax is owed on the purchase price | CDTFA-230 paragraph 4 |
For a business reselling lab or medical supplies, the practical point is that the test is what the buyer does with the goods, not what the goods are. See how to become a medical supply reseller for the business side.
Misuse consequences
| Situation | Consequence stated by CDTFA |
|---|---|
| Certificate used for personal gain or to evade tax | Tax that would have been due, plus interest from the purchase date, plus a penalty of 10 percent of the tax or $500, whichever is more, for each purchase |
| Fraud or intent to evade | 25 percent penalty |
| Giving a completed certificate with intent to evade reporting or paying tax (Revenue and Taxation Code section 7153, per Publication 103) | Misdemeanor: fine of at least $1,000 and up to $5,000 per offense, up to one year of imprisonment, or both |
| Buyer knows at purchase the goods will not be resold before use (Revenue and Taxation Code section 6094.5, per the CDTFA-230) | The form warns the buyer may be guilty of a misdemeanor |
Common misunderstandings
- “A resale certificate is the same as a seller’s permit.” It is not; the certificate is a purchaser’s statement to a vendor, and the permit is a CDTFA registration.
- “It must say exempt.” CDTFA says the words “for resale” are required and “nontaxable” or “exempt” are not acceptable.
- “An undated certificate is void.” CDTFA says an otherwise valid certificate is not invalid solely because it is undated.
- “A permit is always required to issue one.” CDTFA says it is not, provided the certificate explains why none is required.
FAQ
How do I get a seller’s permit in California?
A seller’s permit is registered with CDTFA, which offers a “Register for a Permit, License, or Account” service. Confirm current fees and steps with CDTFA directly.
Is the CDTFA-230 the only acceptable resale certificate?
No. CDTFA publication 103 accepts any document containing the required elements listed above.
How can a supplier check a buyer’s permit?
Use CDTFA’s “Verify a permit, license, or account” tool or the 24-hour automated line at 1-888-225-5263.
What happens if a certificate is misused?
See the table above: tax plus interest and penalties, and, where a certificate is given with intent to evade tax, possible misdemeanor penalties.
Sources
- CDTFA, CDTFA-230 General Resale Certificate, REV. 1 (8-17), checked 2026-11-03.
- CDTFA, Publication 103, Valid Resale Certificates, checked 2026-11-03.
- CDTFA, Tax Guide for Home-Based Businesses: Managing Your Sales, checked 2026-11-03.
