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SellTreez: How Do I Ensure I Am Not Double Paying Excise Tax with the New CA Tax Changes?

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Valerie Simpson
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Question:

How do I ensure I am not paying double excise tax with the new CA tax law?

Answer: 

You can claim a credit on your return for any excise tax paid to a distributor before Jan 1, for products sold after Jan 1, 2023.

To calculate how much excise tax credit can be claimed based on inventory purchased with excise tax paid to distributors prior to 2023 and sold in 2023: 

  1. Navigate to Inventory > Purchasing (Invoices) and confirm the last Invoice # from 2022 (note this down)
  2. Navigate to Reports > Sales > Tax
  3. Select the 3 dots to CSV Export
  4. Open the export and filter the sheet
  5. In column AG for Invoice ID, filter by condition “Less Than or Equal To” and enter the Invoice # from step 1 (This should now show only invoices accepted before 2023)

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  1. Take the difference between column AM “Cost With Excise” and column AL “Cost Without Excise”
  2.  Sum up the difference which should be the excise tax credit amount.
Since this process takes into account the original invoice excise tax, it works for all CA retailers regardless of how excise tax was configured to calculate at the POS. 

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