Who Is the CDTFA and How Does This Affect My Business?
This new agency is called the California Department of Tax and Fee Administration (CDTFA). The CDTFA is now the place to go to obtain your California Seller’s Permit and file sales and use tax, and to update information about your current business.
For many businesses who are familiar with the BOE, the transition to CDTFA will be seamless. Most BOE employees were transferred to the CDTFA to ensure a smooth transition for local business owners.
When Do I Have to Notify the BOE or CDTFA?
You’ll first need to notify the CDTFA to let them know that you’re engaged in business in California and that you’d like to obtain your seller’s permit. This is the responsible step to run your business legally and ensure that your tax filings are accurate.
Remember that a California seller’s permit is required for any business that:
- Has an office, warehouse, or any other place of business in California
- Has agents or representatives operating in California
- Receives rental payments from the lease of tangible personal property in California
- Intends to lease or sell tangible personal property that would ordinarily be subject to sales tax if sold at retail
If any of these apply to your business, it is important that you apply for your seller’s permit with the CDTFA. You should also obtain a business license from your city or county. Your business could face closure if you are caught operating without your license or permit.
You should also notify the CDTFA of the following changes:
- Change of address
- Change of ownership, including adding/dropping of partners or change in business structure
- Close of business
- If you buy or start a new business