Chapter 177 Tax Exempt
Tax Exempt options help you waive sales tax for customers who are certified exempt. These override automatic calculations and help to track certification and exempt status.
Automatic calculations, using a Tax Status or service like TaxJar, may determine that no sales tax is collected because a transaction is out-of-state or items are non-taxable.
Tax Exempt applies to taxable transactions where tax is calculated and would normally be collected, but overrides so no sales tax is collected for the customer who is exempt.
Tax Exempt
Tax Exempt options help you waive sales tax for customers who are certified exempt. These override automatic calculations and help to track certification and exempt status.
Automatic calculations, using a Tax Status or service like TaxJar, may determine that no sales tax is collected because a transaction is out-of-state or items are non-taxable.
Tax Exempt applies to taxable transactions where tax is calculated and would normally be collected, but overrides so no sales tax is collected for the customer who is exempt.
Customer Tax Settings
Tax Settings on the Customer card, History tab, help you automate sales tax collection.
Depending on your needs, you might use only Tax Status to record local rates for your combined report of one state, or you may need TaxJar to help calculate in many states.
Settings include Tax Status, Resale Number, a Tax Exempt checkbox, Exemption Type, Exempt States, and Exempt Expiry with a checkbox on top for No Expiry.
Resale Number
Resale Number lets you record a reseller certificate provided by an exempt wholesaler.
Edit Exempt
Edit Exempt is an Access Privilege in Employee card used when All Access is off.
Edit Exempt lets you change the Tax Exempt and No Expiry checkboxes on Customer. You can Add(+) these as columns on Customers Search to check or uncheck there, too.
Ask your system administrator if you need access to Edit Exempt or ask an account manager if you need customer Exempt settings changed to waive sales tax on invoices.
To enable Edit Exempt:
1. Go to Employee Card
2. Go to Access Tab
3. If All Access is off (unchecked), click once on Exempt on the same row to activate.
4. Click OK to save Employee Card
5. Have the employee Quit and log in again to test
Exemption Type
Exemption Type lets you record the reason the customer is exempt from Sales Tax.
Exemption Types for TaxJar are Wholesale, Government, Other, and Non-Exempt.
Exempt Expiry
Exempt Expiry is a date you can fill in when you need to follow up with the customer.
Resellers who provide a resale certificate for their states may provide a date of expiry. BigBusiness includes Exempt Expiry and the report for Customers by Exempt Expiry.
Customers by Exempt Expiry
Customers by Exempt Expiry shows you customers with exemption expiration dates.
This chapter shows settings for tax exempt customers like Resale Number and Expiry. This reports lists these settings for easy review, listing Customers by Exempt Expiry.