FAQ: AccountingSuite's Built In Sales Tax Module
Which rate is used when calculating sales tax?
The Sales Tax is calculated using the rate on the document (Sales Order, Sales Quote, Sales Invoice, Cash Sale). The rate is located on the last tab labeled "Taxes".
Ok, then why is there a rate on the Customer Card?
The rate on the Customer Card is the default sales tax rate for this customer. When creating a document for this customer, this is the rate that will display on the document. You can always change it.
Alright, how about the rate in the Settings? What the heck is that for?
When creating a new customer, this rate will be copied to the card by default so that you don't have to enter it. It can be changed on the customer card. If you don't like this behavior, leave the sales tax field in setting blank and no rate will be copied.
Is Sales Tax calculated using the rate at the Billing Address or Shipping Address?
Good question. It all depends on :
a) What you are shipping?
b) Where you are shipping it and
c) where you are billing it to?
Tax laws vary GREATLY by state and locality and the rates may be different between two addresses that sit across the street from each other in certain parts of the country. We HIGHLY recommend using our Sales Tax integration with Avalara for these complicated situations. You can find out more about this here. In short, you don't have to think about it. Save your order and the right sales tax will be put on it. Reporting and payment is included with the subscription and if they're wrong, they will pay the fine.
Related Articles
Sales Tax Features
Sales Tax Keeping track of Sales Tax can be a difficult chore. AccountingSuite™ offers two ways to lighten the load and help you account for Sales Tax collection and payment. Our built in Sales Tax functionality is comprised of Sales Tax Agencies, ...
Adding Sales Tax on Transactions
Adding Sales Tax on Transactions To calculate Sales Tax on Sales Orders, Invoices and Credit Memos, follow these steps. Please note that this process will result in charges being assessed for sales tax calculation. Create the Invoice or Credit ...
Editing Product to use AvaTax Sales Tax
Editing Product to Use AvaTax Sales Tax In order to assign the appropriate tax rates, each product in your inventory must be assigned a tax code. Because some products are taxable and some are not, it is also necessary to indicate which products in ...
Saving and Adding Tax Codes
Saving and Adding Tax Code Sales Tax Codes help simplify the complex rules associated with different taxable and non-taxable goods and services. Each code represents a category of products or services and each taxable item you sell will need to be ...
Avalara
AvaTax Introduction Collecting the right sales tax involves finding the right rate. With the complexity of sales tax rates, taxes may be higher in certain instances with customers that are right across the street from each other. To simplify the tax ...