Why is the CA Prepayment amount amount zero, even though I have sales this month?
Overview
You want to know why your current CA Prepayment filing shows $0 due even though your company had sales that month.
Environment
Avalara Returns
Resolution
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The amount included in this prepayment is based on the sales tax collected for that month, minus any credits, not the sales total itself
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When credits exceed sales (total sales tax for month is negative) the payment amount is $0
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For sales with no tax due to being exempt or non-taxable, there is no tax collected, so the payment amount would be $0 unless taxable sales were also processed
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This form is filed to remit payment for sales tax collected during a filing term, so there is a payment amount only if the sales tax collected in that month was positive
Note: Credits are processed as part of the quarterly filing (CA CDTFA 401, 401 A2, etc.) and will be processed follow standard credit process when the actual return form is filed