- California will begin taxing qualifying digital products, including many remotely accessed SaaS subscriptions, starting January 1, 2027.
- California sales and use tax filers must use the filing period assigned in their CDTFA account, as filing frequency can be quarterly, monthly, or yearly and may change with business activity or ownership changes.
- When preparing a return, taxpayers should reconcile CDTFA figures with their records and review items such as district-rate changes, marketplace facilitator sales, and rounding differences before filing.
- Deduction handling matters: shipping, marketplace facilitator sales, and returned taxable merchandise may be deductible only if they fit the CDTFA line item and the facts of the transaction; shipping is not automatically exempt.
- Marketplace facilitator transactions can affect both gross sales and deductions, so they must be reviewed separately from direct sales before submitting the return.
Source: taxjar.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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