Accounting for company | USA | Double entry with Sales Tax | Account numbers

Sales Tax

Sales Tax in USA is a very diversified and complex thema. The approach we take here is to let user to create customized tax codes for exactly the City he sell to. 

In the Sales Tax Code table you have some example of predefined tax code, for States with different situations.

Sales Tax Codes

You can create Sales Tax Code specific to a city or a County or State. The percentage is the one that is charged to the customer. 

• You can setup as many codes you needs.
  Just insert a new line, like in Excel.
• You can use as tax code the zip code of the city of the customers.
• You can specify the parameters that should apply to this code, for charged, paid or transactions with no tax.
• When you enter the transaction you select the Tax Code and the software will automatically calculate the sales tax and register on the defined account.

Sales Tax Grouping

You create groups that help you organize Tax Codes hierarchically and define the structure that you desire.
With the command>Sales tax report you can see the transactions summed with the different levels.
The template already has example of multi-level grouping by:

• Type of transaction:
  • Sales Tax Charged
    When the business sell.
  • Sales Tax Paid (optional)
    When the business buy.
  • Sales Tax Exemptions.
    Sell of goods that are not taxable.
• County (optional).
  For States where counties also add their sales tax.
• State
  Totals for all Codes that are related to the specific state.