Form CDTFA-232 "Annual Certification Regarding Solicitation Activities" - California

What Is Form CDTFA-232?

This is a legal form that was released by the California Department of Tax and Fee Administration - a government authority operating within California. As of today, no separate filing guidelines for the form are provided by the issuing department.

Form Details:

  • Released on October 1, 2017;
  • The latest edition provided by the California Department of Tax and Fee Administration;
  • Easy to use and ready to print;
  • Quick to customize;
  • Compatible with most PDF-viewing applications;
  • Fill out the form in our online filing application.

Download a fillable version of Form CDTFA-232 by clicking the link below or browse more documents and templates provided by the California Department of Tax and Fee Administration.

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Download Form CDTFA-232 "Annual Certification Regarding Solicitation Activities" - California

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CDTFA-232 (FRONT) REV. 2 (10-17)
STATE OF CALIFORNIA
ANNUAL CERTIFICATION
CALIFORNIA DEPARTMENT OF TAX AND FEE ADMINISTRATION
REGARDING SOLICITATION ACTIVITIES
AFFILIATE NEXUS INFORMATION
A “retailer engaged in business in this state” as defined in Revenue and Taxation Code (RTC) section 6203 is
required to register with the California Department of Tax and Fee Administration (CDTFA) to collect and remit use
tax on sales of tangible personal property to California customers.
RTC section 6203, subdivision (c)(5) includes an “affiliate nexus provision.” Under the provision, a retailer is engaged
in business in this state and is required to register to collect California use tax if the retailer enters into “an agreement
or agreements under which a person or persons in this state, for a commission or other consideration, directly or
indirectly refers potential purchasers of tangible personal property to the retailer, whether by an Internet-based link or
an Internet website, or otherwise, provided that the retailer’s sales exceed two specific sales thresholds.
Sales and Use Tax Regulation 1684,
Collection of Use Tax by
Retailers, explains that the affiliate nexus provision
does not apply if a retailer can demonstrate that all of the persons with whom the retailer has agreements described
in the affiliate nexus provision did not directly or indirectly solicit potential customers for the retailer in California. In
addition, Regulation 1684 provides that a retailer can demonstrate that an agreement is not an agreement subject to
the affiliate nexus provision if:
1. The retailer’s agreement prohibits persons operating under the agreement from engaging in any solicitation
activities in California that refer potential customers to the retailer including, but not limited to, distributing
flyers, coupons, newsletters and other printed promotional materials or electronic equivalents, verbal
soliciting (for example, in-person referrals), initiating telephone calls, and sending emails;
2. The person or persons operating under the agreement in California certify annually, under penalty of
perjury, that they have not engaged in any prohibited solicitation activities in California at any time during
the previous year; and
3. The retailer accepts the certification or certifications in good faith, and the retailer does not know or have
reason to know that the certification or certifications are false or fraudulent.
Regulation 1684 further provides that a retailer can demonstrate that an agreement with an organization, such as
a club or non-profit group, is not subject to the affiliate nexus provision if, in addition to the above requirements,
1) the agreement provides that the organization will maintain information on its website alerting its members to the
prohibition against each of the solicitation activities described above, and 2) the retailer obtains an annual
certification from the organization under penalty of perjury that includes a statement certifying that its website
includes information directed at its members alerting them to the prohibition against the solicitation activities
described above.
Instructions for Annual Certification
A person may complete the Annual Certification of No Solicitation section on the next page, or any document that
satisfies the requirements of Regulation 1684, to annually certify under penalty of perjury that the person has not
engaged in any prohibited solicitation activities in California at any time during the previous year.
An organization may complete the Additional Statement from Organization section on the next page, or any docu-
ment that satisfies the requirements of Regulation 1684, to annually certify under penalty of perjury that its website
includes information directed at its members alerting them to the prohibition against the solicitation activities
described above. The CDTFA recommends you retain this form or any other document that satisfies the annual
certification requirements of Regulation 1684 for a minimum of eight years.
CDTFA-232 (FRONT) REV. 2 (10-17)
STATE OF CALIFORNIA
ANNUAL CERTIFICATION
CALIFORNIA DEPARTMENT OF TAX AND FEE ADMINISTRATION
REGARDING SOLICITATION ACTIVITIES
AFFILIATE NEXUS INFORMATION
A “retailer engaged in business in this state” as defined in Revenue and Taxation Code (RTC) section 6203 is
required to register with the California Department of Tax and Fee Administration (CDTFA) to collect and remit use
tax on sales of tangible personal property to California customers.
RTC section 6203, subdivision (c)(5) includes an “affiliate nexus provision.” Under the provision, a retailer is engaged
in business in this state and is required to register to collect California use tax if the retailer enters into “an agreement
or agreements under which a person or persons in this state, for a commission or other consideration, directly or
indirectly refers potential purchasers of tangible personal property to the retailer, whether by an Internet-based link or
an Internet website, or otherwise, provided that the retailer’s sales exceed two specific sales thresholds.
Sales and Use Tax Regulation 1684,
Collection of Use Tax by
Retailers, explains that the affiliate nexus provision
does not apply if a retailer can demonstrate that all of the persons with whom the retailer has agreements described
in the affiliate nexus provision did not directly or indirectly solicit potential customers for the retailer in California. In
addition, Regulation 1684 provides that a retailer can demonstrate that an agreement is not an agreement subject to
the affiliate nexus provision if:
1. The retailer’s agreement prohibits persons operating under the agreement from engaging in any solicitation
activities in California that refer potential customers to the retailer including, but not limited to, distributing
flyers, coupons, newsletters and other printed promotional materials or electronic equivalents, verbal
soliciting (for example, in-person referrals), initiating telephone calls, and sending emails;
2. The person or persons operating under the agreement in California certify annually, under penalty of
perjury, that they have not engaged in any prohibited solicitation activities in California at any time during
the previous year; and
3. The retailer accepts the certification or certifications in good faith, and the retailer does not know or have
reason to know that the certification or certifications are false or fraudulent.
Regulation 1684 further provides that a retailer can demonstrate that an agreement with an organization, such as
a club or non-profit group, is not subject to the affiliate nexus provision if, in addition to the above requirements,
1) the agreement provides that the organization will maintain information on its website alerting its members to the
prohibition against each of the solicitation activities described above, and 2) the retailer obtains an annual
certification from the organization under penalty of perjury that includes a statement certifying that its website
includes information directed at its members alerting them to the prohibition against the solicitation activities
described above.
Instructions for Annual Certification
A person may complete the Annual Certification of No Solicitation section on the next page, or any document that
satisfies the requirements of Regulation 1684, to annually certify under penalty of perjury that the person has not
engaged in any prohibited solicitation activities in California at any time during the previous year.
An organization may complete the Additional Statement from Organization section on the next page, or any docu-
ment that satisfies the requirements of Regulation 1684, to annually certify under penalty of perjury that its website
includes information directed at its members alerting them to the prohibition against the solicitation activities
described above. The CDTFA recommends you retain this form or any other document that satisfies the annual
certification requirements of Regulation 1684 for a minimum of eight years.
CDTFA-232 (BACK) REV. 2 (10-17)
ANNUAL CERTIFICATION OF NO SOLICITATION
(to be completed by persons operating in California)
I HEREBY CERTIFY, UNDER PENALTY OF PERJURY:
That the person named below is operating under an agreement with ____________________________________________
OUT-OF-STATE RETAILER’S NAME
and the person named below has not engaged in prohibited solicitation activities in California that refers potential
customers to ______________________________________ at any time during the previous year______________________.
OUT-OF-STATE RETAILER’S NAME
XX-XX-XX TO XX-XX-XX
The prohibited solicitation activities include, but are not limited to, distributing flyers, coupons, newsletters, and other
printed promotional materials or electronic equivalents, verbal soliciting (for example, in-person referrals), initiating
telephone calls, and sending emails.
PERSON’S NAME
SIGNATURE OF PERSON OR PERSON’S AUTHORIZED REPRESENTATIVE
DATE
PRINTED NAME OF PERSON SIGNING
TITLE
TELEPHONE NUMBER
(
)
ADDRESS OF PERSON SIGNING (street, city, state, zip code)
ADDRESS OF PERSON’S AUTHORIZED REPRESENTATIVE WHEN APPLICABLE (street, city, state, zip code)
ADDITIONAL STATEMENT FROM ORGANIZATION
(to be completed by organizations)
I HEREBY CERTIFY, UNDER PENALTY OF PERJURY:
That the website of the organization named below includes information that alerts its members that anyone operating
under the organization’s agreement with _________________________________________________________________
ORGANIZATION’S NAME
is prohibited from engaging in any solicitation activities in California that refers potential customers to
________________________________________________________, including, but not limited to, distributing flyers,
OUT-OF-STATE RETAILER
coupons, newsletters, and other printed promotional materials or electronic equivalents, verbal soliciting (for example,
in-person referrals), initiating telephone calls, and sending emails.
ORGANIZATION’S NAME
SIGNATURE OF ORGANIZATION’S AUTHORIZED REPRESENTATIVE
DATE
PRINTED NAME OF AUTHORIZED REPRESENTATIVE
TITLE
TELEPHONE NUMBER
(
)
ADDRESS OF AUTHORIZED REPRESENTATIVE (street, city, state, zip code)
ADDRESS OF ORGANIZATION (street, city, state, zip code)
ORGANIZATION’S WEBSITE
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