Charging tax on California orders

1

Hi, I may be reading this wrong, or it may not apply, but it seems like Huel is defined as a food, and as such is exempt from California sales tax:

"complete dietary foods providing the user in the recommended daily dosage with substantial amounts of vitamins, proteins, minerals and foods providing adequate caloric intake. The latter is a food if it provides the user with the following daily minimums:

  1. 70 grams of high quality protein

  2. 900 calories

  3. Minimum daily requirements as established by the regulations of the Federal Food and Drug Administration of the following vitamins: A, B1, C, D, Riboflavin, and Niacin or Niacinamide; and the following minerals: Calcium, Phosphorus, Iron and Iodine."

https://www.cdtfa.ca.gov/lawguides/vol1/sutr/sales-and-use-tax-regulations-art8-all.html

Could someone double check this? It would be great to not have to pay the additional 9% or so, if it’s not required.

Thanks!

2

I believe this came up a few months ago and because it is considered “processed” the tax unfortunately is still necessary. I could be wrong though.

3

Yeap we cover this here.

Huel is NOT exempt from California sales tax.

4

It seems like the tax calculator for Huel Powder must be picking up ‘(4) “Food products” do not include any product for human consumption in liquid, powdered,’
or
increase or decrease generally one or more of the following areas of human nutrition:

  1. Vitamins
  2. Proteins
    in Regulation 1602

It looks like the tax exempt option would be to go with dry mixes which have whole ingredients like lentils, rice, oats, etc. which are hydrated with water. It would be great to have a clear legal explanation added in when any charge like tax is added onto the order so it is clear right away what every new charge is, since typically the order breakdown is displayed for the purpose of customer verification and hopefully fast acceptance.

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