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BTLG Table of Contents > Cigarette and Tobacco Products Tax Annotations > Tobacco Products Tax Reimbursement

Cigarette and Tobacco Products Tax Annotations

Tobacco Products Tax Reimbursement

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Tobacco Products Tax Reimbursement. A distributor has collected tobacco tax reimbursement when the distributor collects full payment for invoices stating the tobacco product is sold "tax paid," "CA tax paid," "CA tobacco tax paid," or in some other similar way states the tobacco product is sold for a tax-included price.

Whether the tobacco products are sold at a tax-included price depends on the facts and circumstances surrounding the sale. When the facts are that the sales invoice states the distributor is charging the purchaser a sales price that is inclusive of the tax the distributor owes on the sale, the distributor is selling the product for a tax-included price. In other words, the distributor is charging the purchaser a price for which the distributor is reimbursed by the purchaser for the tax that applies to the sale. When the purchaser pays the full amount of the tax-included price, the purchaser has reimbursed the distributor for the tax it owes. 6/17/2024.