When is a resale certificate generally appropriate?

When buying items the business will resell in its regular operations.

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  1. For the owner's groceries
  2. For office furniture in use
  3. For goods bought for resale ✔

Why: A resale certificate documents that inventory is being bought for resale rather than final use. The sale may then qualify for sales-tax treatment as a resale.

Huh, didn't know that: Materials that become a physical part of a product held for resale may also qualify.

The dad joke
I saw a television for sale with the volume stuck on full. I couldn't turn it down.
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References

Answer: For goods bought for resale. A resale certificate documents that inventory is being bought for resale rather than final use. The sale may then qualify for sales-tax treatment as a resale.

  1. California CDTFA, Sales for Resale www.cdtfa.ca.gov/formspubs/pub103
    items they will sell in the regular course of their business operations
    Checked 2026-10-11.

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