Instructions For Form Boe-401-Gs - Fuel Retailers Return (Page 3 of 9) in pdf

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

STATE OF CALIFORNIA

BOARD OF EQUALIZATION

Section A. Full Deductions—Back Page

Any transaction(s) under this section must be included in line 1, Total Gross Sales on the front page.

Line 4. Sales to Other Retailers for Purposes of Resale

Enter your total sales to other sellers who submitted resale certificates to you for their purchases.

In general, you can accept resale certificates from other sellers who are buying property to resell in the regular course of

business. If you obtain a timely and valid resale certificate, taken in good faith, tax will not apply to your sale. See

BOE 230, General Resale Certificate.

To be valid, resale certificates must contain specific information. For more information, see Regulation 1668, Sales for

Resale.

You can verify the validity of seller’s permits by calling the BOE’s Seller’s Permit Verification service at 1-888-225-5263 or

by visiting our website at

Line 5. Nontaxable Sales of Food Products

Enter your nontaxable sales of food products sold for human consumption.

Whether food product sales are taxable depends on many conditions, including who makes the sale, where the sale

occurs, who the customer is, and what is sold. For example, the following sales are generally taxable and should not be

deducted:

• Sales of alcoholic and carbonated beverages

• Sales of hot prepared food products

• Sales of meals or food sold for consumption at your place of business or sold for consumption in a place where

admission is charged.

For more information on food sales, see Regulation 1602, Food Products, or Regulation 1603, Taxable Sales of Food

Products. Vending machine operators should see Regulation 1574, Vending Machine Operators.

Line 6. Nontaxable Labor

Enter labor charges for installing pre-manufactured property or for repairing or reconditioning property to restore it to its

original use.

Note: Labor charges for making or fabricating a new product (such as labor charges for making a ring or furniture), or for

assembling a product, are generally taxable and should not be deducted. Tax applies even if your customer provides the

property that you fabricate.

(Regulation 1546, Installing, Repairing, Reconditioning in General and publication 108, Labor Charges.)

Line 7. Sales to the United States Government

Enter sales made to:

• The United States government or its unincorporated agencies and instrumentalities, such as the following federal

departments: Treasury, Interior, Agriculture, or Defense

• Any incorporated agency or instrumentality of the United States wholly owned by either the United States, or by a

corporation wholly owned by the United States

• The American Red Cross, its chapters and branches

• Federal reserve banks, federal credit unions, federal land banks, and federal home loan banks.

Note: Sales made to the State of California or to cities and counties and local governments in the state are generally tax

able and should not be deducted. They are treated like any other sale. (Regulation 1614, Sales to the United States and

Its Instrumentalities or publication 102, Sales to the U.S. Government.)

Line 8. Sales in Interstate or Foreign Commerce

Enter sales that are exempt from tax as interstate or foreign commerce (sales involving shipments or deliveries from

California to points outside this state).

For a sale to be exempt, the sales agreement or contract must require the property to be shipped to an out-of-state

point, and you must either

• Use your company vehicle (or other conveyance operated by your business) to ship the property to that location, or

• Deliver the property to a carrier, customs broker, or forwarding agent for shipment outside this state. (Regulation 1620,

Interstate and Foreign Commerce or publication 101, Sales Delivered Outside California.)

Instructions For Form Boe-401-Gs - Fuel Retailers Return Page 3

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