Out-of-State Sellers: Do You Need to Register with California? (Publication 77)
Examples — Required to Register

Below are some common examples of situations that would require a retailer to register with the California Department of Tax and Fee Administration (CDTFA) for sales and use tax purposes.

Retailer with Stocks of Merchandise (Inventory)

If you maintain stocks of merchandise in this state, then you must hold at least one seller's permit.

Please note: You are not required to hold a seller's permit if all of your sales are made exclusively in interstate or foreign commerce.

Retailer Using Fulfillment Center in California

If you use a California fulfillment center to store your inventory, you are required to register with CDTFA and file sales and use tax returns. For more information, see our online guide, Fulfillment Centers.

Retailer with Sales Representative in California

If you have a sales representative soliciting sales in California, you are required to register with CDTFA.

Retailer Installing Property in California

If you install tangible personal property in California using your own employees or independent contractors, you are required to register with CDTFA.

For example: You maintain a single facility in Arizona where you design and sell computer systems. All of your sales are made by mail order or over the Internet. However, on request, you send employees to California to install the equipment for your customers.

Retailer Providing Training in California

You provide training services in California related to goods or merchandise you sell.

For example: Your Virginia-based business does not have sales representatives or inventory in California. However, one of your customer service representatives routinely comes to California to provide training on the computer equipment you sell.

Retailer Leasing Property to Customers for Use in California

You receive payments from the lease of equipment or merchandise located in California and you have not already paid California sales or use tax on the purchase of that equipment or merchandise.

For example: Your Nevada car dealership leases cars to California residents who drive them in this state. You have no other business connection to California.

Retailer Selling Goods for Delivery in California

Beginning April 1, 2019, the total combined sales of tangible personal property for delivery in California by you and all persons related to you exceed $500,000 during the preceding or current calendar year. See our online guide Use Tax Collection Requirements Based on Sales into California Due to the Wayfair Decision.