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Advanced Sales Tax

Required for regions that have multiple sales tax rates based on a product group.

The Advanced Sales Tax option is required for states or provinces that have multiple sales tax rates based on a product group. This advanced feature also allows the user to exempt a customer from sales tax for a group of products.

When do I need this module?

The standard sales tax calculation (without the Advanced Sales Tax option) will manage taxable and non-taxable items but allows only a single rate per sales tax jurisdiction. For example, you can not charge 8% tax on sodas and 4% on standard grocery items without this advanced option.

The Advanced Sales Tax module is needed in the following situations:

  • Sales tax rates differ based on the product that is being sold. For example, groceries are taxed at 3% and other items are taxed at 6%. This applies only to multiple rates and does not apply to states that exempt some items from sales tax and tax other items.
  • A customer is exempt of sales tax for a specific group of products. For example oil products may be exempt from sales tax for a specific group of customers. With the Advanced Sales Tax module the user can configure the oil products group as exempt. The user must manually mark the item as exempt if this feature is not installed.
  • The user needs to collect sales tax from multiple tax jurisdictions (states) and the products exempted from sales tax differ from state to state. For example: Groceries are exempt from state A but are taxable in state B or Clothing is exempt from state B but not in state B.

 

Overview
Overview
Overview

Features

  • User defined sales tax groups used to group inventory items based on the sales tax requirements. This option gives the user maximum flexibility to calculate different sales tax rates or exempt sales tax based on a group of items.   
  • Facilitates multiple sales tax rates for a group of inventory items.
  • Allows the user to have multiple sales tax exemptions for a single customer based on a sales tax group.
  • Gives the user the ability to configure the rates and exemptions of multiple sales taxes that apply to a common jurisdiction. For example, some Canadian provinces require both a GST and a PST sales tax for their province. Some USA sales taxes require a state and local tax for the same jurisdiction. 
  • Manage and calculate more advanced taxes such as VAT or Luxury taxes.   


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