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We will drop ship to a foreign location for a CA customer who does not have a resale certificate. Do we have to charge tax?

Full Question: We have a customer registered in California who does not have a resale certificate. There is a merchandise drop shipment to an outside country and we issue the invoice to the customer; do we have to charge them tax?

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Diane Yetter photoIf you are shipping the goods to CA and do not have a CA resale certificate from your customer that you are billing and you are registered to collect CA sales tax then you do have to bill the CA sales tax. If you are shipping it outside of CA (or outside the country) - and you are in fact shipping it (and the customer is not picking it up), then if it is going outside the US you should not have to collect CA sales tax. If you are shipping it to another state, then you have to determine if you have a collection responsibility in the alternate state.

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