Overview
The Sales Tax feature is exclusive to the USA. You need to create a new organization and choose the US edition to make use of this feature. Below are a list of operations you can perform with sales tax.
Sales Tax Liability Report
You can view detailed tax reports which displays clearly the taxable and non-taxable amount for a Tax Authority.
- Go to the Reports module from the sidebar.
- Navigate to the Taxes sub-tab and choose Sales Tax Liability.
- You’ll be able to see a table with sales with tax, sales, including the taxable and non-taxable amounts and also the actual tax collected.
- Click on Sales to view a table containing the non-taxable sales, names of the taxes the tax authority collects along with corresponding total sales, taxable amount, tax percentage and the actual tax collected.
- If you further click on the Tax Name, you’ll be able to view the list of customers who are associated with that tax.
- Furthermore, if you click on Total Sales, you’ll be able to view a detailed report of the transactions for that particular tax.
- Also, if you wish to view the non-taxable sales transactions, click on Total Sales next to Non-taxable Sales on your Sales Tax Liability report. You’ll be able to see the exemption reason, description and the non-taxable amount.
- If you click on the Exemption reason, you will be able to view a detailed report of all the Non-Taxable Sales transactions, for that exemption reason.
Terminologies
| Name | Description |
|---|---|
| Tax Name | It simply refers to the name you’d like to assign to a particular tax. For example, Austin can be the name assigned to the sales tax for the city of Austin. |
| Tax Authority | It refers to the organization in charge of collecting taxes in a specified region. For example, the Travis County Tax Office is the tax authority for Austin, Texas. |
| Rate | It refers to the tax rate for a particular region in percentage. For example, the tax rate in Austin, Texas is 8.25 (percentage). |
| Exemption Reason | Users have to enter why a customer/transaction/item is exempt from sales tax. For example, Child Care and Non Profit Organizations are exempt from tax. |
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