SESK: Stuff Everyone Should Know · sesk.info/biz-resale-certificate-inventory
When is a resale certificate generally appropriate?
When buying items the business will resell in its regular operations.
- For the owner's groceries
- For office furniture in use
- 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.
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.
- 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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