The information on this page is for reference only and should not be used as legal or tax advice. If you are concerned about your sales tax obligations it is advised to hire a professional.

This Page was last updated: December 2021

Do you need to collect sales tax in California?

If you have nexus in California you will need to first register, then collect and remit sales tax. There are two main ways that sellers can have nexus: physical or economic.

Physical nexus - A seller physical/ tangible presence in the state.
Economic nexus - A remote seller (no physical presence) passes the threshold tor total revenue or number of transactions.

Does California charge sales tax on shipping?

Yes

Do you have physical nexus in California?

A seller has physical nexus in California if they have any of the following:

A physical location – This includes an office, place of distribution, sale or sample room or place, warehouse or storage place, or other place of business.
A person working for you – This includes a representative, agent, salesperson, canvasser, independent contractor, or solicitor operating in this state under the authority of the retailer or its subsidiary for the purpose of selling, delivering, installing, assembling, or the taking of orders for any tangible personal property.
An affiliate – Also called “click through” nexus, this includes “a person or persons in this state, for a commission or other consideration, directly or indirectly refer potential purchasers of tangible personal property to the retailer, whether by an Internet-based link or an Internet Web site, or otherwise.” Nexus occurs when sales from affiliates exceed $10,000 in the preceding 12 months AND total in-state sales exceed $1 million in the preceding 12 months.
Presence at a tradeshow – Making sales at a tradeshow may constitution nexus, but if the retailer had a physical presence at a convention or trade show for 15 or fewer days in any 12-month period and did not derive more than $100,000 of net income from these activities in the prior calendar year, nexus would not have been established. However, and it’s a big however, sellers are still required to collect use tax from buyers at trade shows.

Do you have economic nexus in California?

Yes, Marketplace Facilitators are required to collect and remit sales tax on behalf of sellers on their platform.

Filling Sales Tax

 Options for filing sales tax returns:

Online - Online filing required if your estimated monthly tax is $10,000 or more. File with the California Department of Tax & Fee Administration.
Mail - Use California’s short form sales and use tax return to file by mail eSenshi-File – Let us fight your tax battle, we always win! Check out our sales tax services here.