California Tax Updates per CDTFA, January 1, 2024
Tax & Totals breakdown on customer's receipts:
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Prior the CDTFA gave the retailer the option to disclose tax breakdown. Per CDTFA guidelines retailers must now show tax breakdowns on the receipt for revenue recognition. This will allow for transparency for the customer and align with payment and transaction level reporting. Your totals on your receipt will look different going forward as the total now includes all fees and surcharges.
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We have added the option to toggle on 'Tax Surcharge Fee' within your Tax Options settings. Per the CDTFA guidelines, these fees are included in your “Gross Receipts” and are subject to CA State Sales tax calculations. California clients who wish to collect the applicable tax from their customers should activate this option.
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Starting 1/1/2024 California delivery sales and use taxes will be based on the City, County and Zip code where the delivery occurs (not where the retail operation is located). Delivery operators now have the ability to toggle this option within their Tax Options & Delivery Tax Option settings to pull the applicable tax rates directly from the CDTFA.
Specify Member Consumer Types per Region
- Starting 1/1/2024 California delivery operators can now deliver cannabis products to medical patients in regions they were not allowed prior. We have added a field within your regions to specify which member consumer types can be delivered to.
FAQ's
Q: If CDTFA is enabled, will that override any existing manually entered sales tax rates?
A: Yes, there is no need to enter any sales tax rates for city, county, and state - only applicable cannabis taxes.
Q: Will taxes still calculate correctly if the region is set up by KML file vs. Zip Code?
A: Yes, taxes will still calculate correctly if the region uses KML files.