Form CDTFA-230. General Resale Certificate (California)

CDTFA-230, also known as the General Resale Certificate, is a document used by purchasers in California who are engaged in the business of selling tangible personal property. The main purpose of the form is to allow purchasers to issue resale certificates when purchasing items they will sell in the regular course of their business operations, which exempts the seller from owing tax on that sale.

The form consists of several parts, including the purchaser's information, the seller's information, and a description of the items being purchased for resale. The important fields to consider when compiling the form include the purchaser's name, address, and seller's permit number, as well as the seller's name and address. The description of the items being purchased for resale must also be clearly stated on the form.

The parties involved in the transaction are the purchaser and the seller. The purchaser is required to provide the completed form to the seller, who will keep it on file as proof of the exemption.

When compiling the form, the purchaser will need to provide their seller's permit number and a description of the items being purchased for resale. The purchaser must also attach supporting documents, such as invoices or purchase orders, to prove that the items are being purchased for resale.

Application examples and practice and use cases include retailers, wholesalers, and manufacturers who purchase goods for resale. The strengths of the form include its ability to simplify the purchasing process for businesses, while the weaknesses include the potential for fraud if the purchaser is not eligible for the exemption.

Alternative forms include the ST-120, which is used in New York State, and the ST-3, which is used in Maryland. The differences between these forms include the eligibility requirements for each type of resale.

The form affects the future of the participants by providing proof of the exemption and ensuring compliance with sales tax laws. The form is submitted to the seller at the time of purchase and is kept on file for future reference.

In conclusion, the CDTFA-230 General Resale Certificate is an important document for purchasers in California to issue when purchasing items for resale. The form consists of several parts, includes important fields such as purchaser and seller information and a description of the items being purchased for resale, and requires supporting documents to be attached. It has strengths and weaknesses, and alternative forms exist for different states. The form affects the future of the participants and is submitted to the seller at the time of purchase.