Understanding Sales Tax Exemptions for Out-of-State Deliveries

• Sales tax usually does not apply when products are sold and shipped out of California for use elsewhere
• Sales are non-taxable if shipped directly by the seller or through owned transport methods
• Using common carriers like USPS or contract carriers for shipping also qualifies for tax exemption
• Items intended for use abroad must meet specific delivery conditions to qualify
• Selling and delivering new noncommercial vehicles to foreign residents must adhere to certain conditions for tax exemption
• Sales tax exemption does not apply if the purchaser or their representative takes possession in California, even temporarily
• Delivering to a California resident outside the state requires written confirmation that the item is for use outside California
• For more details, refer to publication 34 and Regulation 1620 or contact the Customer Service Center
• Changes in law or regulations after the publication date could affect the applicability of the information provided
• Legal decisions are based on current laws, not solely on the publication’s content

Source: cdtfa.ca.gov

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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