Running a medical or retail marijuana dispensary demands in-depth understanding of the regional laws and meticulous recordkeeping including keeping copies of every cannabis receipt. As of April 2017, 29 states have legalized medical marijuana, which is used to treat many disorders, including multiple sclerosis, HIV/AIDS, inflammation, pain, psychological disorders and substance abuse, among others. Moreover, 9 countries have legalized recreational usage. That means cannabis retailers are lawfully operating in over half of the U.S.
Their businesses can be quite different, however, depending upon the conditions in which they are situated. 1 gap is startup costs. By way of instance, annual licensing fees range from $3,000 in Colorado to $75,000 Connecticut. States may also need a minimum of liquid funds, some areas as high as $250,000, so it is imperative you protect your investment with ideal recordkeeping of each transaction. Maintaining a copy of each cannabis receipt ensures that your dispensary follows local and state laws and safeguards your business in the case of an audit.
What if the receipt include? How can you establish your company is operating in accordance with local and state laws? The cannabis receipt given to the customer proves you’re collecting all of the applicable taxes and dispensing marijuana legally.
If you are contemplating starting a marijuana dispensary or you would like to ensure that your company is operating in compliance with your state’s laws and be sure that you are correctly formatting and documenting cannabis receipts, your point of sale (POS) system is the best tool to handle this requirement.
1. Check the Specific Requirements on Your State
Know your state’s tax laws to make sure that you’re charging the right amount. By way of instance, in California, retailers charge a consumer-excise and sales taxation, while in Colorado, cannabis is subject to different taxation, whether it’s categorized as retail or medical marijuana. It is important to stay current on changing tax laws to be sure you’re collecting the right percentage. Failure to comply can subject your company to penalties and extra scrutiny.
2. Manage Copies of Cannabis Receipts
Use your POS system to send a backup copy of every cannabis receipt into the cloud or store the backup offsite. If you’re issuing receipts with carbon copy paper, staple or clip the receipts together. It’s also wise to keep important financial documents, licensing information and other sensitive financial paperwork in a safe place outside the dispensary. Retain all records for at least 3 years in the event of an audit.
3. Include All Necessary Information on the Cannabis Receipt
Even though the precise information you include will depend on your state’s laws, most receipts include store name and address, the category of taxable merchandise or product category name/product name. Receipts should also have a code or other identifier for the product’s earnings. There may be additional requirements, however. In Oregon, it is required to record the sale subtotal before tax, amount of state tax, local tax, total sale amount and identifying receipt number. A disclaimer stating that receipts are required for customer tax disputes can also be required.
The cannabis market is promising for dispensaries, but it’s closely regulated by the states where marijuana was legalized. Give your company the best opportunity for success and compliance using a POS system equipped with printers that are sophisticated to fulfill regulatory requirements while providing suitable customer experiences in the checkout.