Tax Advice for CBD Sellers

Cannabidiol products are widely available in various formats, from oils and tinctures to cosmetics and edibles. The legality of selling CBD products varies by state, and cannabis businesses face a lot of red tape when it comes to operating legally. Cannabidiol is subject to a different branch of taxation, much the same way alcohol or medicinal marijuana are. Take a look at some helpful tax advice about selling CBD products and what you can expect as a cannabidiol retailer.

CBD In The United States

Cannabidiol is one of the hundreds of cannabinoids found in the hemp plant. Cannabidiol acts in tandem with the body’s endocannabinoid system, producing therapeutic health benefits such as relief for insomnia, stress, anxiety, inflammation, and chronic pain. Products must be properly labeled with the dosage and active ingredients to be sold. Each state has its own sales tax for CBD, and some have exemptions or different tax requirements for medicinal products. Consulting a tax expert is the best way to navigate the gray areas created by ever-changing laws and government filings. 

There are countless online stores on the market today selling cannabis and cannabidiol products. However, the best way to ensure product quality and effectiveness is to read customer reviews. CBD Nerds is an e-commerce site staffed by CBD enthusiasts who offer their insights and product reviews of all things cannabidiol. Not only can you find reliable advice on the best products, but you can also take advantage of special promotions, coupons, and discount offers that you can use on your next order from a featured brand. 

Herb Approach, a Canadian online dispensary, is known for competitive pricing, attractive discount codes, excellent customer service, and collaborations with the industry’s top vendors. The online store offers a wide variety of cannabis compounds that you can purchase without a prescription. Customers can enjoy free shipping on orders over $150 or take advantage of a free shipping offer coupon. You can find a variety of cannabis flowers in Indica, Sativa, and hybrid strains, as well as an assortment of concentrates, edibles, topicals, tinctures, and cannabis accessories.

THC Complexities

Selling full-spectrum CBD products, or those containing more than 0.3 percent THC, impact the taxes paid by both the retailer and the consumer. For example, the state of California taxes topicals and gummies differently than cannabis flowers. As a result, retailers are charged an excise tax which they then pass on to the consumer. CBD products containing 0.3 percent or less THC are only subject to sales tax and not an excise tax. Some states ban the sale of products containing any amount of THC. Other states only allow the sale of non-consumable CBD products. 

The Tax Filing Process

You can use tax software if you prefer to do your own tax preparation. Some tax software programs feature live chat and real-time assistance with your tax return. You may find you qualify for tax deductions that help maximize your tax refund. You’ll need to ensure your state filing is compliant through a complex tax situation. The best way to approach your tax situation is with the help of an experienced cannabis tax professional. 

Mines Press carries all the supplies an accountant needs to project a professional presentation and stay organized during the tax season. Their collection of tax return folders allow you to add a personal touch to clients’ tax return packages. You can find high-quality personalized foil-stamped and printed folders and non-personalized presentation folders in various stock, styles, and colors. Mines Press also carries a collection of tax return folders compatible with current tax preparation software programs. 

Tax laws are constantly changing in the cannabis industry. The type of product and the extraction method are just some factors that determine taxes. Working with a tax professional is the smartest way to approach your tax situation and ensure you comply with state and federal laws.