CDTFA Tax Compliance

Owning a retail business in California requires more than just forming and operating under an entity. You need to make sure you have the proper permits, licenses and certificates from the CDTFA, also known as The California Department of Tax and Fee Administration. Also, you need to make sure that you are charging the correct sales tax to the customer.

Here’s where it gets complicated. If you have two or more locations in different cities, sell online, deliver vs ship your products to the customer, and/or are working with an out-of-state or out-of-country vendor, sales taxes can be different. If you don’t collect the right amount of sales tax, your business will be liable for paying the difference to the CDTFA.

MBA Financial & Accounting Solutions ensures that you have the proper permits, licenses and certificates. We file your quarterly, semi-annual and annual returns on-time and make sure you are collecting the correct sales tax rate based on your type of business.

If you receive a letter from the CDTFA that your business is getting audited, your license is being suspended, or you’ve been penalized and must pay fines, we step in to get you through the process.  Our vast experience in dealing with the CDTFA, formally known as the Board of Equalization, will help you resolve and clarify any issues you are encountering.

CDTFA Services We Offer

California Seller’s Permit: If you are doing business in California and intend to sell or lease tangible personal property subject to sales tax sold at retail, you are required to have a seller’s permit and prominently display it at your place of business.

California Re-Seller Certificate: If you are purchasing products for the purpose of reselling them, you are required to provide this certificate to the vendor, so you won’t get charged sales tax on your purchase.

Filing Business Returns: Depending on your business, you must file either quarterly, semi-annually, or annually and you might have to make estimated payments regularly to the CDTFA.

Sales Tax Rate Setup: Based on your business location(s) and how you sell, ship and/or deliver your products, we make sure you are collecting the correct sales tax from your customers which can vary in each of the scenarios mentioned above.

Audit Representation: The California Department of Tax and Fee Administration performs regular business audits. We represent your business and work with their auditors on the items they are reviewing to ensure that you are being treated fairly as well as saving you as much money as possible.

Cannabis Tax Permit: If you are a distributor of cannabis and cannabis products, you must obtain a cannabis tax permit. You must obtain this permit in addition to your seller’s permit.

Cigarette and Tobacco Products: If you sell cigarettes and tobacco products at retail, you must have a California Cigarette and Tobacco Products Retailer’s License before purchasing or selling cigarettes or tobacco products. You must obtain this license in addition to your seller’s permit.

Covered Electronic Waste Recycling Fee (eWaste): In addition to your seller’s permit, you must have an eWaste account if you sell or lease covered electronic devices (CEDs) such as computer monitors, laptop computers, or portable DVD players with LCD screens.

Lumber Products Assessment: Beginning January 1, 2013, a new law requires that a 1% assessment be levied on purchases of lumber products and engineered wood products for use in California, based on the selling price of the products.

Tire Fee: In addition to your seller’s permit, you must have a tire fee account if you sell new tires, lease/rent motor vehicles, construction equipment, farm equipment, and motorized equipment.

Underground Storage Tank: If you own an underground storage tank, you must register with the California Department of Tax and Fee Administration. You will be required to file underground storage tank fee returns and pay any fee amounts due for the reporting period.