CDTFA-38 (FRONT) REV. 7 (2 -18)                                                                                                          STATE OF CALIFORNIA
APPLICATION FOR OUT-OF-STATE                                         CALIFORNIA DEPARTMENT OF TAX AND FEE ADMINISTRATION 
VOLUNTARY DISCLOSURE

Although your retail business is located outside of California, you may be required to collect and report California use tax when you make 
sales of tangible personal property that is used, stored, or otherwise consumed in this state. You are required to collect and pay the use 
tax if you are “engaged in business” in California as defined in California Revenue and Taxation Code section 6203 (see reverse).
The California Department of Tax and Fee Administration (CDTFA) has established a voluntary disclosure use tax liability program for 
out-of-state retailers who wish to acknowledge their liability for California use tax. By voluntarily registering with the CDTFA under this 
program, you may be able to limit your liability for tax, penalties, and interest due for prior periods. Ordinarily, if you did not file a return, 
the CDTFA can send you a bill (“deficiency determination”) for the amounts owed as late as eight years after the quarterly period in which 
the sales were made.  Pursuant to  Revenue and Taxation Code section 6487.05,            if you qualify for the voluntary disclosure program, the 
billing period may be limited to three years. In addition, you may be relieved of applicable penalties (see below).
Please complete this form if you wish to apply for the voluntary disclosure program. By completing and signing this form, you are 
representing that:
    • The retailer is located outside this state, and has not previously registered with the CDTFA or the Board of Equalization (BOE).
    • The retailer is engaged in business in this state, as defined in Revenue and Taxation Code section 6203 (see reverse).
    • The retailer voluntarily registers with the CDTFA.
    • The retailer has not been previously contacted by the CDTFA, the BOE, or their agents regarding the provisions of Revenue and
    Taxation Code section 6203.
    • Failure by the retailer to register with the CDTFA or the BOE, file returns and pay tax to the CDTFA or the BOE was not due to
    negligence, intentional disregard of the law, fraud, or intent to evade the provisions of the California Revenue and Taxation Code.

                                                                CERTIFICATION
              I certify (or declare), under penalty of perjury, under the laws of the State of California, that the foregoing is true and correct.
BUSINESS NAME                                                        SSN OR FEIN                                                     ACCOUNT NUMBER (see note)

YOUR NAME                                                            TYPE OF BUSINESS

ADDRESS (street, city, state, zip code) 

TELEPHONE NUMBER                        PERIOD OPERATED IN CALIFORNIA
                                        From (month, day, year)                                                 To (month, day, year)
YOUR BUSINESS ACTIVITY IN CALIFORNIA
 Salesperson     Solicitor     Manufacturer’s Agent     Independent Contractor or Representative     Installer     Trainer
 Affiliate     Commonly-Controlled Group     In-State Location     Warehouse, Fulfillment, or Distribution Center     Inventory 
 Installation of Tangible Personal Property     Rent or Lease Property     Deliver Merchandise by  on-CommonN                        Carrier     Other 
DESCRIBE HOW YOU ARE ENGAGED IN BUSINESS IN CALIFORNIA (if more space is needed, please attach a separate sheet)

Request for Relief of Penalty: (if more space is needed, please attach a separate sheet) 
The CDTFA may grant relief from penalty charges, but not interest charges with this statement if it is determined that a person’s failure 
to file a timely return or payment was due to reasonable cause and circumstances beyond the person’s control. If you are relieved of 
the penalty charges, you must still pay the interest due on late return payments and prepayments. Your request for relief from penalty 
may not be processed until the tax has been paid in full.
Under penalty of perjury, I request relief from penalty charges for the period(s)                                                                   because

I can attest to the fact that the person above meets the qualifications of Revenue and Taxation Code section 6487.05. I further attest that 
the person’s previous failure to register with the CDTFA or the BOE, file returns, and pay tax to the CDTFA or the BOE was not due to 
negligence, intentional disregard of the law, fraud, or intent to evade the provisions of the California Revenue and Taxation Code.
SIGNATURE                                              TITLE                                                                         DATE

In addition to this application, please visit our website at www.cdtfa.ca.gov to complete the electronic registration and obtain your 
California Certificate of Registration-Use Tax Account. (Note: Please enter the account number on this form in the “Account Number” 
field.) This application should be mailed within thirty (30) days of registration to: California Department of Tax and Fee Administration, 
Out-of-State Office, 3321 Power Inn Road, Suite 130, Sacramento, CA 95826-3893, Telephone 1-916-227-6600, Fax 1-916-227-6641. 
You may not qualify for this program if your application is not submitted within the thirty (30) days. For more information, please see 
publication 178, Voluntary Disclosure Program, which can be accessed through the CDTFA website listed above.

CDTFA-38 (BACK) REV. 7 (1-18)

California Revenue and Taxation Code:                                    (ii)  The retailer, within the preceding 12 months, has total cumulative 
6203. Collection by retailer:                                            sales of tangible personal property to purchasers in this state in 
                                                                         excess of one million dollars ($1,000,000).
(a) Except as provided by Sections 6292 and 6293, every retailer 
engaged in business in this state and making sales of tangible           (B) An agreement under which a retailer purchases advertisements 
personal property for storage, use, or other consumption in this         from a person or persons in this state, to be delivered on television, radio, 
state, not exempted under Chapter 3.5 (commencing with Section           in print, on the Internet, or by any other medium, is not an agreement 
6271) or Chapter 4 (commencing with Section 6351), shall, at the         described in subparagraph (A), unless the advertisement revenue paid 
time of making the sales or, if the storage, use, or other consumption   to the person or persons in this state consists of commissions or other 
of the tangible personal property is not then taxable hereunder, at      consideration that is based upon sales of tangible personal property.
the time the storage, use, or other consumption becomes taxable,         (C) Notwithstanding subparagraph (B), an agreement under which a 
collect the tax from the purchaser and give to the purchaser a           retailer engages a person in this state to place an advertisement on 
receipt therefor in the manner and form prescribed by the board.         an Internet Web site operated by that person, or operated by another 
(b) As respects leases constituting sales of tangible personal           person in this state, is not an agreement described in subparagraph 
property, the tax shall be collected from the lessee at the time         (A), unless the person entering the agreement with the retailer also 
amounts are paid by the lessee under the lease.                          directly or indirectly solicits potential customers in this state through 
                                                                         use of flyers, newsletters, telephone calls, electronic mail, blogs, 
(c) “Retailer engaged in business in this state” as used in this         microblogs, social networking sites, or other means of direct or 
section and Section 6202 means any retailer that has substantial         indirect solicitation specifically targeted at potential customers in this 
nexus with this state for purposes of the commerce clause of the         state.
United States Constitution and any retailer upon whom federal law 
permits this state to impose a use tax collection duty. “Retailer        (D) For purposes of this paragraph, “retailer” includes an entity 
engaged in business in this state” specifically includes, but is not     affiliated with a retailer within the meaning of Section 1504 of the 
limited to, any of the following:                                        Internal Revenue Code.
(1) Any retailer maintaining, occupying, or using, permanently or        (E) This paragraph shall not apply if the retailer can demonstrate 
temporarily, directly or indirectly, or through a subsidiary, or agent,  that the person in this state with whom the retailer has an agreement 
by whatever name called, an office, place of distribution, sales or      did not engage in referrals in the state on behalf of the retailer that 
sample room or place, warehouse or storage place, or other place         would satisfy the requirements of the commerce clause of the 
of business.                                                             United States Constitution.
(2) Any retailer having any representative, agent, salesperson,          (d) Except as provided in this subdivision, a retailer is not a “retailer 
canvasser, independent contractor, or solicitor operating in this        engaged in business in this state” under paragraph (2) of subdivision 
state under the authority of the retailer or its subsidiary for the      (c) if that retailer’s sole physical presence in this state is to engage in 
purpose of selling, delivering, installing, assembling, or the taking    convention and trade show activities as described in Section 513(d)
of orders for any tangible personal property.                            (3)(A) of the Internal Revenue Code, and if the retailer, including any 
                                                                         of his or her representatives, agents, salespersons, canvassers, 
(3) As respects a lease, any retailer deriving rentals from a lease of   independent contractors, or solicitors, does not engage in those 
tangible personal property situated in this state.                       convention and trade show activities for more than 15 days, in 
(4) Any retailer that is a member of a commonly controlled group,        whole or in part, in this state during any 12-month period and did 
as defined in Section 25105, and is a member of a combined               not derive more than one hundred thousand dollars ($100,000) 
reporting group, as defined in paragraph (3) of subdivision (b) of       of net income from those activities in this state during the prior 
Section 25106.5 of Title 18 of the California Code of Regulations,       calendar year. Notwithstanding the preceding sentence, a retailer 
that includes another member of the retailer’s commonly controlled       engaging in convention and trade show activities, as described 
group that, pursuant to an agreement with or in cooperation with the     in Section 513(d)(3)(A) of the Internal Revenue Code, is a “retailer 
retailer, performs services in this state in connection with tangible    engaged in business in this state,” and is liable for collection of the 
personal property to be sold by the retailer, including, but not limited applicable use tax, with respect to any sale of tangible personal 
to, design and development of tangible personal property sold by         property occurring at the convention and trade show activities 
the retailer, or the solicitation of sales of tangible personal property and with respect to any sale of tangible personal property made 
on behalf of the retailer.                                               pursuant to an order taken at or during those convention and trade 
                                                                         show activities.
(5) (A) Any retailer entering into an agreement or agreements under 
which a person or persons in this state, for a commission or other       (e) Any limitations created by this section upon the definition 
consideration, directly or indirectly refer potential purchasers of      of “retailer engaged in business in this state” shall only apply for 
tangible personal property to the retailer, whether by an Internet-      purposes of tax liability under this code. Nothing in this section is 
based link or an Internet Web site, or otherwise, provided that both     intended to affect or limit, in any way, civil liability or jurisdiction 
of the following conditions are met:                                     under Section 410.10 of the Code of Civil Procedure.
(i) The total cumulative sales price from all of the retailer’s sales,   History.—Added by Stats. 2011, Ch. 313 (AB 155), in effect 
within the preceding 12 months, of tangible personal property to         September 23, 2011, but operative September 15, 2012.
purchasers in this state that are referred pursuant to all of those 
agreements with a person or persons in this state, is in excess of 
ten thousand dollars ($10,000).