Invoicing & collecting

For electronic or remote delivery, CDTFA says the place of sale is generally the customer's address, and the place of use is where the person accessing the product is located. This matters for local and district tax rates. (L-1036)

Operational checklist

Collect a reliable customer billing or service address at checkout.
Flag which products are digital products and which are excluded or exempt (see What changed).
Keep documentation for exemptions, such as resale/reproduction rights or use solely outside California.
Make sure your billing system can apply rates by customer location, including district taxes.
Plan for subscriptions that span January 1, 2027. (Confirm with a tax professional.)
Itemize bundles where possible. (Confirm with a tax professional.)

General information, not tax advice. This site summarizes public CDTFA guidance on Senate Bill 122 (Stats. 2026, ch. 23). It is not legal or tax advice, and it does not replace the law or CDTFA regulations. For your specific situation, consult a CPA or tax attorney, and consider asking CDTFA for written advice. Written advice can protect you, but phone advice cannot.