Sales Delivered Outside California (Publication 101)

Sales tax generally does not apply to your transaction when you sell a product and ship it directly to the purchaser at an out-of-state location for use outside California. Your sale is not taxable if you:

• Ship the product directly to the purchaser using your own delivery vehicle or another means of transport that you own,
• Ship the product by delivering it to a common carrier (including the U.S. Postal Service), contract carrier, customs broker, export packer, or forwarding agent,*
• Sell items that will be used in other countries and deliver the items in a way that meets the special delivery conditions explained below, or
• Sell new, noncommercial vehicles to foreign residents and deliver the vehicles in a way that meets specific conditions explained in Regulation 1610, Vehicles, Vessels, and Aircraft, subdivision (b)(2)(D).

In most cases, if a purchaser or their representative takes possession of an item in California—even temporarily—your sale does not qualify for this particular sales tax exemption. In addition, if you deliver an item to a California resident at an out-of-state location, you should apply tax unless the purchaser states in writing that the item was purchased for use outside California. For additional information, please see publication 34, Motor Vehicle Dealers, and Regulation 1620, Interstate and Foreign Commerce, or call our Customer Service Center at 1‑800‑400‑7115  (TTY:711). Customer service representatives are available Monday through Friday from 7:30 a.m. to 5:00 p.m. (Pacific time), except state holidays.

* An individual or firm does not qualify as a carrier, forwarding agent, export packer, or customs broker simply because a purchaser designates them to receive and ship goods to a point outside the state. They must be regularly engaged in the shipping or transporting business.

Please note: This publication summarizes the law and applicable regulations in effect when the publication was written, as noted above. However, changes in the law or in regulations may have occurred since that time. If there is a conflict between the text in this publication and the law, decisions will be based on the law and not on this publication.