A new setup needs to be done and user is having trouble finding the correct way to set it up.
The user needs to bill customers for SAAS. But if they are in Texas , only 80% of it will be taxable.
Can you please update if there is any documentation that tells the best way to set this up?
Note: This query is entered on-behalf of a customer…
Best answer by Thomas Peterson
Hi,
Sales tax in US can be a very complicated process. Every state / county / city can have their own tax rules / regulations / calculations. Some tax can be calculated on the first N dollars, others may tax only after a given amount.
If the tax is 80% of the amount and assume the tax rate is 10%, the effective tax rate is actually 8% (80% of 10). If you want IFS to automatically calculate the tax correctly you could enter that tax with an 8% rate. Not entirely elegant, but it does work.
Another option would be to manually override that tax amount on the given transactions. Given the numerous tax examples where tax is really tough to calculate IFS offers the user the ability to override the tax. As an option IFS will allow a user to override the calculate tax.
When we have clients with very difficult tax needs, the other option is to use an external tax system.
Best regards,
Thomas
Hi,
Sales tax in US can be a very complicated process. Every state / county / city can have their own tax rules / regulations / calculations. Some tax can be calculated on the first N dollars, others may tax only after a given amount.
If the tax is 80% of the amount and assume the tax rate is 10%, the effective tax rate is actually 8% (80% of 10). If you want IFS to automatically calculate the tax correctly you could enter that tax with an 8% rate. Not entirely elegant, but it does work.
Another option would be to manually override that tax amount on the given transactions. Given the numerous tax examples where tax is really tough to calculate IFS offers the user the ability to override the tax. As an option IFS will allow a user to override the calculate tax.
When we have clients with very difficult tax needs, the other option is to use an external tax system.
Best regards,
Thomas
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