How to Verify a California Resale Certificate in 2026

California has some of the strictest resale certificate rules in the United States. Unlike most states that accept out-of-state certificates, California requires businesses to have a California-specific seller's permit. If you're accepting resale certificates from buyers in California, verification is critical to protect yourself from tax liability.

This guide covers everything you need to know about verifying California resale certificates in 2026.

Why Verify California Resale Certificates

When you accept a resale certificate, you're trusting that the buyer will:

• Resell the product (not use it themselves)
• Collect and remit sales tax to California
• Have a valid, active seller's permit

If you don't verify, you could be liable for:

• Uncollected sales tax on the transaction
• Penalties and interest
• Audit liability going back years

California law requires you to take the resale certificate in good faith. Verification shows due diligence.

Using CDTFA's Online Verification Tool

The California Department of Tax and Fee Administration (CDTFA) provides a free online verification tool.

Step-by-Step Verification Process

1. Go to the CDTFA Verification Portal

• Visit: https://onlineservices.cdtfa.ca.gov
• Select "Verify a Permit or License"

2. Enter Certificate Information You'll need:

• Seller's Permit Number (format: 000-000000)
• Business Name (must match exactly)
• Business Address (optional but recommended)

3. Review the Results

The system will show:

• • Active - Permit is valid, you can accept the certificate
• • Inactive - Permit cancelled, suspended, or revoked
• • Not Found - Invalid permit number or incorrect details

What to Do With Results

Important: Save or screenshot the verification results. Keep them with the resale certificate.

Manual Verification Process

If online verification doesn't work or you need additional confirmation:

Option 1: Call CDTFA

CDTFA Customer Service

• Phone: 1-800-400-7115
• Hours: Monday-Friday, 8:00 AM - 5:00 PM PT
• Have the permit number and business name ready

Option 2: Written Request

Mail verification requests to:

California Department of Tax and Fee Administration
Taxpayer Information Section, MIC:70
PO Box 942879
Sacramento, CA 94279-0070

Include:

• Seller's permit number
• Business name and address
• Your business information
• Reason for verification request

Response time: 2-4 weeks

Option 3: Check the Certificate Itself

A valid California resale certificate (Form CDTFA-230) should have:

• Business name and address
• Seller's permit number
• Business type
• Signature of owner/authorized person
• Date signed

Red flags:

• Handwritten permit number (should be printed)
• Out-of-state address for a California permit
• Unsigned or undated certificate
• Certificate older than 3 years without renewal confirmation

Common Verification Issues

Issue #1: Permit Number Format

California permit numbers have specific formats:

• Standard: 000-000000 (3 digits, dash, 6 digits)
• Sub-permit: 000-000000-001

If the format doesn't match, it's likely invalid.

Issue #2: Business Name Mismatch

The permit might be under:

• Legal entity name (LLC, Inc., Corp)
• DBA (Doing Business As) name
• Owner's personal name (sole proprietors)

Solution: Ask buyer for documentation linking the name on the certificate to the permit number.

Issue #3: Expired or Suspended Permit

California permits can be:

• Suspended - for non-filing or non-payment
• Revoked - for serious violations
• Surrendered - business closed

Always verify even if certificate looks valid. Permits can be suspended between transactions.

Issue #4: Out-of-State Certificate Presented

California does not accept out-of-state resale certificates. The buyer must have a California seller's permit.

Common mistake: Buyer presents their home state certificate thinking it works in California.

What to do: Explain California's requirement, direct them to apply at cdtfa.ca.gov.

Record Keeping Requirements

California law requires you to maintain resale certificate records for at least 4 years.

What to Keep

For each certificate, maintain:

• • Original certificate (or electronic copy)
• • Verification results (screenshot or printout)
• • Date of verification
• • Invoice/sales records tied to the certificate

Best Practices

1. Create a Verification Log

2. Digital Record Management

• Scan physical certificates to PDF
• Store with invoice/order records
• Back up to cloud storage
• Set reminders to re-verify annually

3. Annual Re-verification

• Check permits once per year for regular customers
• Verify immediately for new customers
• Flag any inactive permits for follow-up

Audit Protection

During a CDTFA audit, you must prove:

• You obtained the certificate in good faith
• The certificate was complete and valid at time of sale
• You kept proper records

Having verification records shows due diligence and protects you from liability.

FAQs

Q: How often should I verify a certificate? A: For new customers, verify immediately. For existing customers, re-verify annually or whenever you have doubts.

Q: Can I accept a photocopy of a resale certificate? A: Yes, California accepts copies, faxes, or electronic certificates as long as they contain all required information.

Q: What if the buyer refuses to provide verification details? A: Don't accept the certificate. Collect sales tax on the transaction. If they're a legitimate reseller, they'll provide the information.

Q: Is there a fee to verify permits? A: No, CDTFA verification is free.

Q: Can I use a blanket certificate for multiple purchases? A: Yes, California accepts blanket certificates valid for ongoing transactions. Still verify the permit at least annually.

Protect Your Business

Verifying California resale certificates isn't optional—it's essential business practice. The few minutes it takes to verify can save you thousands in tax liability.

Quick Checklist:

• • Use CDTFA online verification tool
• • Check permit number format
• • Confirm business name matches
• • Keep verification records for 4+ years
• • Re-verify annually for regular customers

Need help getting your own California seller's permit? Start your application today and join the thousands of businesses we've helped stay compliant.