Laws, Regulations and Annotations


Business Taxes Law Guide—Revision 2024

Sales and Use Tax Annotations

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325.0000 Interstate and Foreign Commerce—Regulation 1620

Annotation 325.0606

(c) Shipments from California to Points Outside State

(1) Generally

325.0606 Proper Documentation Essential for Exemption. If a transaction is intended to be exempt in foreign commerce, it is necessary that the terms of the sales agreement be so constructed as to indicate the contemplation of a sale in foreign commerce. The failure to include any shipping or special instructions on the sales invoice for a TV set, even though a space is provided thereon for such instructions, creates the assumption that none were given at the time of sale. The fact that the TV was picked up at the retailer's place of business by a household goods carrier for inclusion with the buyer's other possessions being moved to Canada does not cure the defect in the documentation. The exemption for exports does not depend on the intent of the purchaser but depends upon whether at the time of the transaction the goods are within the stream of foreign commerce. 2/13/69.