Electronic Waste Recycling (eWaste) Fee - FAQ

Frequently Asked Questions: Sales Tax, Lay-away, Internet Sales, Drop-shipments, Invoices, Resale, Government Sales, and Donations

  1. Is the fee subject to sales tax?
  2. How will the fee apply to Lay-Away Sales?
  3. Does the fee apply to sales made over the Internet?
  4. How does the Fee apply to California retailers making drop shipments of CEDs on behalf of out of state companies to consumers in California?
  5. Do I have to itemize the fee on an invoice for the sale of more than one covered device?
  6. How should the invoice look?
  7. Are sales for resale or sales to customers outside California subject to the fee?
  8. Do I need to collect the fee when I sell or lease a CED to the Federal government?
  9. May I pay all or part of the fee for a customer (similar to "sales tax free" events)?
  10. I'm a retailer. Do I owe the fee if I pull a CED out of my inventory and use or donate it?
  11. Will the fee apply to configure-to-order sales made through a retailer but shipped by the manufacturer?

  1. Is the fee subject to sales tax?

    No. However, you must list the amount of the fee on your customer invoice.

  2. How will the fee apply to Lay-Away Sales?

    A lay-away is generally a contract to sell at a future date and the eWaste Fee would not apply until the full purchase price is paid and the sale is complete.

  3. Does the fee apply to sales made over the Internet?

    Yes. Internet sales are treated just like sales from bricks-and-mortar stores or sales by mail or phone. If you sell a CED to a California consumer and your business is in California, or you are required to hold a California seller's permit or are registered, or should be registered, to collect California use tax, you owe the fee. If you are not required to collect the fee, your customer owes it.

  4. How does the Fee apply to California retailers making drop shipments of CEDs on behalf of out of state companies to consumers in California?

    If a California retailer is instructed by an out of state retailer to ship a CED directly to a California consumer, the California retailer/drop shipper is obligated to collect the fee. Definition of retail sale, R & T Code section 6007 or for additional information on Drop Shipments, Regulation 1706.

  5. Do I have to itemize the fee on an invoice for the sale of more than one covered device?

    Yes. But if a customer purchases a number of CEDs on one invoice, you may want to group the products and fees by fee category on your invoice. If you do this, you can list one fee total for each fee category.

    Example:

        Fee 1/01/2005-12/31/2008 Fee as of 1/01/2009
    10 17" monitors @ $200 each $2,000 $2,000
    Electronic Waste Recycling Fee $80 $160
    2 36" televisions @ $500 each $1,000 $1,000
      Electronic Waste Recycling Fee $20 $50

    You can use this method or list each CED and fee amount separately.

  6. How should the invoice look?

    The Board does not prescribe any particular format for the invoice, but must be able to determine if the correct amount was collected and remitted on the number of CEDs sold. The law requires the retailer to separately state the electronic waste recycling fee on the customer's receipt. Either the CIWMB or DTSC could later adopt a regulation prescribing the look of the invoice or receipt.

  7. Are sales for resale or sales to customers outside California subject to the fee?

    Sales for resale are not subject to the fee. Sales of CEDs shipped directly to locations outside California are not subject to the fee if the transaction is not subject to California sales or use tax.

    You must maintain records to document any exempt sale, just like you do when you make a sale that is exempt from sales tax (resale certificates, shipping documents, and so forth). Click here for help with information on sales for resale. Click here for information on sales shipped directly to locations outside California.

  8. Do I need to collect the fee when I sell or lease a CED to the Federal government?

    Yes, retailers are required to collect the fee on retail sales or leases to the Federal government.

  9. May I pay all or part of the fee for a customer (similar to "sales tax free" events)?

    Yes. You must note that you have done so on the customer's receipt. The entire fee is due with your fee return. When a retailer pays the fee and indicates that on the receipt, the customer has no liability for the fee.

  10. I'm a retailer. Do I owe the fee if I pull a CED out of my inventory and use or donate it?

    Yes. If you pull a CED from your display stock or inventory and use or donate it, you are considered the consumer. You must report the fee on your return.

  11. Will the fee apply to configure-to-order sales made through a retailer but shipped by the manufacturer?

    Yes. A consumer who buys a CED in a retail sale or a transaction subject to use tax owes the fee. The retailer is required to collect the fee and pay it to us.

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