Washington | DoH-certified products and tax setup in Dutchie POS

Learn to set up these DoH-certified products in Dutchie POS so they are tax-exempt for patients and taxable for recreational customers.

Certain products that are certified by the Washington State Department of Health to meet testing and packaging standards require a separate tax setup to exempt qualifying patients from the state cannabis excise tax. Here's how to set up these DoH-certified products in Dutchie POS so they are tax-exempt for patients but still taxable for recreational customers.

Create new tax categories and rates

  1. Create a new tax category for DoH-certified cannabis products.
  2. Next, update your tax rates so you have two separate cannabis excise tax rates, one for medical patients and one for recreational customers:
    • The medical excise tax should apply only to the Medical customer type and your non-DoH cannabis tax category.
      bo_taxes and compliance_WA med tax.png
    • The recreational excise tax should apply to the Recreational customer type and both DoH and non-DoH cannabis tax categories.
      bo_taxes and compliance_WA rec tax.png
  3. Be sure to set both 37% cannabis taxes as Excise taxes. This places your cannabis taxes into a separate column from your regular (non-excise) sales tax in the Washington Tax by Product Type (DoH/DoR Tax Record) report.
    bo_settings_taxes and compliance_excise yes.png
  4. Your non-cannabis sales tax(es) should apply to all tax categories, including the new DoH category, but should not apply to the Medical customer type. Sales taxes should also have Is excise tax set to No and Tax type set to Sales.
    wa sales tax example.png

Use the Washington Tax by Product Type (DoH/DoR Tax Record) report for tax reporting purposes.

Assign your DoH tax category to product categories or products

With your taxes and tax categories updated, you can now categorize DoH-certified products so they are taxed correctly at the Register. There are two ways to do this:

At the product category level

This method requires creating new, separate product categories for DoH-certified products, assigning your DoH tax category to the new product categories, and then assigning products to those new categories.

The benefit of this method is that it separates DoH from non-DoH products when running reports based on product categories. It may also be more efficient to set up if you have a large number of DoH-certified products within a relatively limited number of categories.

At the individual product level

You can alternatively assign a tax category to individual products in your catalog by updating the Tax categories dropdown on the product detail page.

bo_products_catalog_product level tax category.png
This overrides the tax category assignment(s) at the product category level and, therefore, does not require creating separate product categories for DoH-certified products.

The potential downside of this method is that product category-level reporting will not separate DoH from non-DoH products and you will instead need to rely on tax-level reports such as Tax and Sales by Tax Category or Tax Rate Breakdown (Item Level). However, if separating DoH from non-DoH products in category-level reporting is not a priority for you, and/or if you have a limited number of DoH-certified products, this method may be a good fit.

 

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