Out-of-State Sellers: Do You Need to Register with California? (Publication 77)
Not Required To Register

You are not engaged in business in California and generally are not required to register to report and pay California sales and/or use tax solely based on one or more transactions illustrated in the following examples:

1. Convention and Trade Show Activities

• To participate in convention and trade show activities for not more than 15 days during any 12-month period, and
• During the prior calendar year, you did not earn more than $100,000 of net income from those activities in this state.

However, if you sell merchandise at the trade show, or take orders for merchandise delivered later to California customers, you must pay tax on those sales.

If you qualify for this trade show exception, you may register to obtain a temporary permit to sell products at the qualifying trade shows and you are responsible for the tax due with respect to sales you make or orders you take at the trade shows.

2. Warranty and Repair Services

Your only connection is the use of an independent representative or independent contractor in California to perform warranty or repair services for the products you sell provided that the ownership of the representative or independent contractor and your business is not substantially similar.

Please note: if the products you sell or supply in performance of the repair exceed $500,000, you will be required to register for a Certificate of Registration – Use Tax. For more information on services, please see publication 108, Labor Charges.