California Taxes Sales of Counterfeit Goods

Monday, January 12th, 2015

 
 
A table full of counterfeit sunglasses.
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The California Board of Equalization released a notice discussing the new law that makes sales for resale of counterfeit goods taxable.

Counterfeit goods are goods that carry a counterfeit mark that is identical to or substantially indistinguishable from a mark registered with the US Patent and Trademark Office. It is illegal to willfully manufacture or intentionally sell, or knowingly possess for sale, counterfeit goods.

Previously, counterfeit goods purchased for resale qualified for the resale exemption. Now, if a person is convicted of trafficking counterfeit goods, all of his or her sales and purchases of counterfeit goods will be considered taxable. Purchases of counterfeit goods for resale are no longer exempt at the time of purchase, and resale deductions cannot be claimed for counterfeit goods sold. The Board may bill the convicted trafficker for unpaid sales or use tax within one year of the conviction.

http://www.boe.ca.gov/news/L394.pdf


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Transaction (buying or selling things), Tax (the tax on this activity), Resources (our people, our website, our support services) - TTR, Inc.

TTR has a website that companies subscribe to and use daily. This website provides a list of everything that can be bought or sold in the U.S. It provides simple answers to whether buying or selling these items is taxable (subject to a sales tax or other tax), and it provides all the legal authority to support these tax answers.

TTR likes to keep things simple and fun, which is why it has great people who provide help to clients on any support questions they have about transaction tax issues.

Please visit TTR on the web at www.ttrus.com or call 866.578.8193.

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