Instructions For Form Boe-401-Gs - Fuel Retailers Return (Page 2 of 9) in pdf

BOE-401-GSIN REV. 5 (4-13)

STATE OF CALIFORNIA

BOARD OF EQUALIZATION

Lines 1 thru 3—Fron

age

t P

Sales • Purchases Subject to Use Tax

Line 1. Total Sales (gross receipts)

Enter your total taxable and nontaxable sales for the reporting period, including lease and rental receipts.

Report all sales (in any manner) related to California business. You will deduct nontaxable transactions in Section A

through D on page 2.

Notes:

• Include all charges related to your sales, such as labor, service, and shipping and handling charges.

• If you sold any business assets, such as fixtures and equipment, during the reporting period, you must report the

sale. If you are filing your final return and reporting the sale of the business assets, see the last bullet under “Line 2.

Purchases Subject to Use Tax.”

• Your “total sales” may include amounts for California sales or use taxes. If this is the case, be sure to deduct those tax

amounts on line 9. If you do not, you will overpay tax.

Line 2. Purchases Subject to Use Tax

Enter your total purchases that are subject to use tax, as explained below.

Your purchases of merchandise, equipment, and other tangible personal property are subject to use tax and must be

reported if you

• Purchased the property from an out-of-state retailer who did not collect California use tax, or

• Purchased the property with a resale certificate or other exemption certificate and

• Used the property in California for a purpose other than (1) resale or (2) demonstration, retention, or display while

holding it for sale in the regular course of business.

You must also report your purchase of a vessel or aircraft if you (1) purchased it from an unlicensed retailer who did not

charge tax on the transaction and (2) used the property for a purpose other than resale as described above.

Enter the amount you paid for the property.

Notes:

• If you paid another state’s sales or use tax on your purchase, do not include the tax payment as part of your purchase

price. You may be eligible for a credit for the other state’s tax (see line 20).

• If you are reporting property purchased with a resale certificate, report the purchase price on the tax return for the

reporting period during which you first used the property in California.

• If you are reporting property purchased from an out-of-state retailer who did not charge you for California tax, report

the purchase price on the tax return for the reporting period during which you first used the property in California.

• If you are closing out your seller’s permit and have sold fixtures and equipment, you should report the sales price and

identify the sale as “fixtures and equipment” on line 2 of your final sales and use tax return. You must also report any

inventory you intend to retain for your own use or for use as a gift, that was purchased for resale without the payment

of tax or tax reimbursement, on line 2 of your final sales and use tax return and identify it as “retained inventory.” Sales

of inventory to another retailer or to the purchaser of your business are not taxable, but should be reported as “Sales

for Resale” on line 4 of your return. A resale certificate should be obtained from the buyer and saved in your records.

For more detailed information, see publication 74, Closing Out Your Seller’s Permit.

Line 3.

Add lines 1 and 2. Enter the result on line 3.

Back Page

Full Deductions, Tax Recovery Adjustments/Deductions, and Partial State Tax Exemptions.

The following transactions are not subject to tax and will be subtracted from the total on line 3. First you must complete

the deductions on the back of your return.

You cannot claim a deduction for a transaction unless it has been reported on line 1 or 2 of this return or a previous

return. If you did not report the original sale, you cannot claim a deduction related to that sale, unless you are a “lender”

registered with the BOE.

You must maintain records that support all claimed deductions.

Instructions For Form Boe-401-Gs - Fuel Retailers Return Page 2

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