HighUS
California Sales Tax Audit of E-Commerce Seller
California audited an e-commerce seller for unpaid sales tax across multiple years.
What Happened
CDTFA: it administers sales and use tax. Online registration for a permit is free. Remote sellers with inventory or other nexus in California should confirm current registration rules on CDTFA. This page does not invent a three-year audit of a named seller or a BOE docket (the agency is CDTFA).
When
Confirm current CDTFA notices
Cause
Amazon FBA inventory stored in California created sales tax nexus, but seller did not register or collect California sales tax.
Resolution
- 1Confirm whether you must register on CDTFA’s online permit page
- 2File and pay through CDTFA online services if registered
- 3If you receive a CDTFA letter, read it on CDTFA’s Letters and Notices page
- 4Do not treat a marketplace invoice as a closing letter from CDTFA
Timeline
Confirm timing with the operator or competent authority
Cost
ask the operator for the current rate; this page does not invent a range
Lessons Learned
- •CDTFA administers California sales and use tax
- •Online permit registration is free
- •Confirm nexus on CDTFA; this page does not invent an FBA-audit dollar figure
Prevention
- ✓Determine sales tax nexus in all states where you have FBA inventory
- ✓Register for sales tax in nexus states before making sales
- ✓Use sales tax automation tools to manage multi-state compliance