Qualified Purchaser Program

Overview

Assembly Bill x4-18, enacted in 2009, added section 6225 to the Revenue and Taxation Code, which requires a "Qualified Purchaser" to register with the Board of Equalization (BOE) and report and pay use tax directly to the BOE.

Generally, a "Qualified Purchaser" is a business or person that receives at least $100,000 in gross receipts from business operations per year, and is not otherwise required to be registered with the BOE. Qualified Purchasers are required to register with the BOE and report and pay use tax due on purchases made from out-of-state retailers. Please visit the Qualifications page for more information.

If you have a California business, meet the requirements of a qualified purchaser, and have use tax to report, you can register online using electronic registration (eReg). Please visit the Registration page for more information.

For an explanation of use tax, please see California Use Tax Information, Publication 123, California Businesses: How to Identify and Report California Use Tax Due, or Publication 110, California Use Tax Basics.