SESKStuff Everyone Should Know
SESK: Stuff Everyone Should Know · sesk.info/biz-keep-resale-certificates

What should a seller do with customers' resale certificates?

Retain copies to support the sales-for-resale treatment.

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  1. Return every copy immediately
  2. Keep the certificates and related orders ✔
  3. Replace them with verbal promises

Why: The seller needs documentation showing why sales tax was not collected. Keep valid certificates and related purchase orders according to state rules.

Huh, didn't know that: A certificate accepted late may not protect the seller from tax liability.

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Why did the shopper buy a ladder? The prices were too high.
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References

Answer: Keep the certificates and related orders. The seller needs documentation showing why sales tax was not collected. Keep valid certificates and related purchase orders according to state rules.

  1. California CDTFA, Documenting and Reporting Sales www.cdtfa.ca.gov/formspubs/pub103/documenting-and-reporting-sales.htm
    A seller should retain copies of all resale certificates and any purchase orders issued with the qualified resale certificates.
    Checked 2026-10-11.

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