Record Retention for Cigarette and Tobacco Product Invoices

Retailers must:

• Keep a legible copy of each invoice for one year from the date of the invoice or as long as the cigarette or tobacco product listed on the invoice is available for sale or in their possession, whichever period is longer
• Keep copies of the invoices at each retail location or at a central location
• Provide copies at a retail location within one hour when requested by Revenue

Copies should be numbered and kept in chronological order.

The invoices must contain the:

• Name and address of seller
• Name and address of purchaser
• Date of sale
• Invoice number
• Itemized list of goods sold including brands of cigarettes and number of cartons of each brand, unit price, and identification of tobacco products by name, quantity, and unit price
• Rebates, discounts, or other reductions

During a retail inspection, you must produce the invoices within one hour after we request them. You can provide paper invoices or electronic invoices.

If you cannot produce invoices for cigarettes or tobacco products within an hour, we may seize the products since they are considered contraband under state law. In addition, you may be assessed tax, penalty, and interest on the products.

If necessary, we may seek criminal prosecution if we find that you intentionally evaded cigarette and tobacco taxes.

Once you receive an invoiced product at a distributor’s address or retail location, you must not:

• Move, transfer, or swap cigarettes or tobacco products to a different location even if the business is owned by the same legal entity
• Remove the original sales packaging

If you do move cigarettes or tobacco products to a location other than the location listed on the invoice, or remove the original sales packaging, we may seize the products.

If you suspect Cigarette or Tobacco Tax violations, please report it to us. You may remain anonymous.

Email: tax.fraud@state.mn.us

Phone: 651-297-5195 or 1-800-657-3500 (toll-free)

Fax: 651-556-3105