What is CECET?

The new California Electronic Cigarette Excise Tax (CECET) is now in place. Here’s what you should know and how to sell your vapes in compliance.

As of July 1st, 2022, retailers of electronic cigarettes selling to customers in California have a new set of regulations to abide by. This includes a new excise tax, which must be collected from the purchaser at checkout. In this article, we’ll break down the requirements and offer solutions to help you get your business in compliance and operating smoothly.

First, there are several things you need to accomplish in order to sell your products legally in California under the new rules:

  1. Acquire a CECET Permit – coordinate with your legal counsel and the California Department of Tax and Fee Administration to sort out everything you need and get set up.
  2. Setup CECET Collection at Checkout – the CECET tax is equal to 12.5% of the retail price of the vapor products. This must be collected from the purchaser at checkout and is in addition to the sales and use tax.
  3. File your CECET Reports with Payment – the CECET reports must be submitted electronically via the California Department of Tax and Fee Administration online portal. They are required to be filed quarterly with payment, separately from all other reporting obligations.

With this in mind, you might find these resources helpful regarding CECET:

  • Legal counsel; We’ll connect you to the most trusted and respected experts in the industry.
  • CECET collection; Token of Trust has a solution integrated with most e-commerce platforms.
  • Reporting your taxes; Token of Trust handles your reporting requirements for CECET as well.
  • Understanding all the requirements; here is the CECET FAQ page from the California Department of Tax and Fee Administration for your review.

For a streamlined and comprehensive solution to manage CECET compliance, VapeTaxes.com offers specialized services designed to handle excise tax calculations, reporting, and integration with your e-commerce setup. Our platform can help ensure that you collect and remit the CECET correctly, keeping your business compliant and efficient.

Speak to one of our experts and get back on track in California today!