A seller permit (aka “reseller’s permit”) is a permit issued by a state department (California Department of Tax and Fee Administration,) that awards a person or business the right to sell tangible products. Most businesses and/or people are required to obtain a seller’s permit if they are selling products.

Having a seller’s permit allows you to buy products at wholesale prices, without paying sales tax. When selling your products at retail prices you then charge your customers sales tax that is later paid to the state. You are required to report your gross sales amounts quarterly or annually, depending upon the volume of sales you’re doing.