Online sellers in California must fulfill several specific obligations to comply with sales tax regulations in 2024:

1. Economic Nexus Compliance: If an online seller’s gross sales exceed $500,000 annually in California, they must register for a seller’s permit and collect and remit sales tax on taxable sales.

2. Obtain a Seller’s Permit: Register with the California Department of Tax and Fee Administration (CDTFA) to legally collect sales tax.

3. Accurate Tax Calculation: Apply the correct state and local tax rates based on the buyer’s delivery address using the modified origin-based system.

4. Sales Tax Collection: Collect sales tax at the point of sale for all taxable goods and services sold to California consumers.

5. Remit Taxes Regularly: File sales tax returns and remit the collected taxes according to the assigned filing frequency (monthly, quarterly, or annually).

6. Marketplace Facilitator Compliance: If selling through marketplaces like Amazon, Etsy, or eBay, ensure the marketplace is collecting and remitting sales taxes on your behalf, if applicable.

7. Maintain Accurate Records: Keep detailed records of all sales transactions, taxes collected, and remittances to support compliance and facilitate audits.

8. Use Tax Reporting: Report and remit use tax on out-of-state purchases used within California, if applicable.

9. Stay Informed: Monitor changes in tax laws or rates to ensure ongoing compliance.

10. Exemptions and Exclusions: Understand and apply any applicable sales tax exemptions or exclusions to eligible sales to reduce tax liabilities.

11. Registration for Click-Through Nexus: If meeting the higher click-through threshold of $750,000 in sales, comply with additional nexus obligations.

By adhering to these obligations, online sellers can ensure they remain compliant with California’s sales tax regulations, avoiding penalties and supporting fair competition within the state.