diff --git a/WooCommerce/src/main/kotlin/com/woocommerce/android/ui/woopos/common/data/WooPosProductsTypesFilterConfig.kt b/WooCommerce/src/main/kotlin/com/woocommerce/android/ui/woopos/common/data/WooPosProductsTypesFilterConfig.kt
index a709112e3a7..52002c92d6c 100644
--- a/WooCommerce/src/main/kotlin/com/woocommerce/android/ui/woopos/common/data/WooPosProductsTypesFilterConfig.kt
+++ b/WooCommerce/src/main/kotlin/com/woocommerce/android/ui/woopos/common/data/WooPosProductsTypesFilterConfig.kt
@@ -6,6 +6,7 @@ import org.wordpress.android.fluxc.store.WCProductStore.DownloadableOptions
 import org.wordpress.android.fluxc.store.WCProductStore.ProductFilterOption
 import javax.inject.Inject
 
+// Note: For the Local Catalog feature, the filtering is done locally in WooPosProductsDao.
 class WooPosProductsTypesFilterConfig @Inject constructor() {
     val filters: Map<ProductFilterOption, String> =
         mapOf(
diff --git a/WooCommerce/src/main/kotlin/com/woocommerce/android/ui/woopos/common/data/WooPosVariationsTypesFilterConfig.kt b/WooCommerce/src/main/kotlin/com/woocommerce/android/ui/woopos/common/data/WooPosVariationsTypesFilterConfig.kt
index 093ae3c7e1e..58cae23e6e3 100644
--- a/WooCommerce/src/main/kotlin/com/woocommerce/android/ui/woopos/common/data/WooPosVariationsTypesFilterConfig.kt
+++ b/WooCommerce/src/main/kotlin/com/woocommerce/android/ui/woopos/common/data/WooPosVariationsTypesFilterConfig.kt
@@ -4,6 +4,7 @@ import org.wordpress.android.fluxc.store.WCProductStore.DownloadableOptions
 import org.wordpress.android.fluxc.store.WCProductStore.VariationFilterOption
 import javax.inject.Inject
 
+// Note: For the Local Catalog feature, the filtering is done locally in WooPosVariationsDao.
 class WooPosVariationsTypesFilterConfig @Inject constructor() {
     val filters: Map<VariationFilterOption, String> =
         mapOf(
diff --git a/WooCommerce/src/main/kotlin/com/woocommerce/android/ui/woopos/home/items/variations/WooPosVariationsInDbDataSource.kt b/WooCommerce/src/main/kotlin/com/woocommerce/android/ui/woopos/home/items/variations/WooPosVariationsInDbDataSource.kt
index 9d65efd960c..a73ee909f91 100644
--- a/WooCommerce/src/main/kotlin/com/woocommerce/android/ui/woopos/home/items/variations/WooPosVariationsInDbDataSource.kt
+++ b/WooCommerce/src/main/kotlin/com/woocommerce/android/ui/woopos/home/items/variations/WooPosVariationsInDbDataSource.kt
@@ -36,7 +36,7 @@ class WooPosVariationsInDbDataSource @Inject constructor(
         forceRefresh: Boolean
     ): Flow<FetchResult> = getVariationsFromDatabaseFlow(productId)
         .map { variations ->
-            FetchResult.Remote(Result.success(variations.applyFilter()))
+            FetchResult.Remote(Result.success(variations))
         }
         .flowOn(Dispatchers.IO)
 
@@ -44,7 +44,3 @@ class WooPosVariationsInDbDataSource @Inject constructor(
         Result.success(emptyList())
     }
 }
-
-private fun List<WooPosVariation>.applyFilter(): List<WooPosVariation> {
-    return filter { !it.isDownloadable }
-}
diff --git a/libs/fluxc-plugin/src/main/kotlin/org/wordpress/android/fluxc/persistence/dao/pos/WooPosProductsDao.kt b/libs/fluxc-plugin/src/main/kotlin/org/wordpress/android/fluxc/persistence/dao/pos/WooPosProductsDao.kt
index 981f416ea64..89c610b99a8 100644
--- a/libs/fluxc-plugin/src/main/kotlin/org/wordpress/android/fluxc/persistence/dao/pos/WooPosProductsDao.kt
+++ b/libs/fluxc-plugin/src/main/kotlin/org/wordpress/android/fluxc/persistence/dao/pos/WooPosProductsDao.kt
@@ -10,7 +10,21 @@ import org.wordpress.android.fluxc.persistence.entity.pos.WooPosProductEntity
 
 @Dao
 abstract class WooPosProductsDao {
-    @Query("SELECT * FROM PosProductEntity WHERE localSiteId = :localSiteId ORDER BY LOWER(name)")
+    companion object {
+        private const val PRODUCT_STATUS_PUBLISH = "publish"
+        private const val PRODUCT_TYPE_SIMPLE = "simple"
+        private const val PRODUCT_TYPE_VARIABLE = "variable"
+        private const val DOWNLOADABLE_FALSE = 0
+    }
+
+    @Query(
+        "SELECT * FROM PosProductEntity " +
+            "WHERE localSiteId = :localSiteId " +
+            "AND status = '$PRODUCT_STATUS_PUBLISH' " +
+            "AND (type = '$PRODUCT_TYPE_SIMPLE' OR type = '$PRODUCT_TYPE_VARIABLE') " +
+            "AND downloadable = '$DOWNLOADABLE_FALSE' " +
+            "ORDER BY LOWER(name)"
+    )
     abstract fun observeAllProducts(localSiteId: LocalId): Flow<List<WooPosProductEntity>>
 
     @Query("SELECT * FROM PosProductEntity WHERE localSiteId = :localSiteId AND remoteId = :remoteId")
diff --git a/libs/fluxc-plugin/src/main/kotlin/org/wordpress/android/fluxc/persistence/dao/pos/WooPosVariationsDao.kt b/libs/fluxc-plugin/src/main/kotlin/org/wordpress/android/fluxc/persistence/dao/pos/WooPosVariationsDao.kt
index 9db789d8aec..b766c38d645 100644
--- a/libs/fluxc-plugin/src/main/kotlin/org/wordpress/android/fluxc/persistence/dao/pos/WooPosVariationsDao.kt
+++ b/libs/fluxc-plugin/src/main/kotlin/org/wordpress/android/fluxc/persistence/dao/pos/WooPosVariationsDao.kt
@@ -10,8 +10,19 @@ import org.wordpress.android.fluxc.persistence.entity.pos.WooPosVariationEntity
 
 @Dao
 abstract class WooPosVariationsDao {
-
-    @Query("SELECT * FROM PosVariationEntity WHERE localSiteId = :localSiteId AND remoteProductId = :productId ORDER BY variationName ASC")
+    companion object {
+        private const val VARIATION_STATUS_PUBLISH = "publish"
+        private const val DOWNLOADABLE_FALSE = 0
+    }
+
+    @Query(
+        "SELECT * FROM PosVariationEntity " +
+            "WHERE localSiteId = :localSiteId " +
+            "AND remoteProductId = :productId " +
+            "AND status = '$VARIATION_STATUS_PUBLISH' " +
+            "AND downloadable = '$DOWNLOADABLE_FALSE' " +
+            "ORDER BY variationName ASC"
+    )
     abstract fun observeVariationsForProduct(
         localSiteId: Int,
         productId: Long