Company Preferences: Sales Tax

Pro Note: If you have multiple stores, sales tax must be set up at Headquarters. Remote stores can select the default tax location applicable to sales at their store on this page.

Use the procedures below to set up the collection of sales tax in Point of Sale. You can add or edit tax codes or locations, and set specific taxing instructions for each. We recommend you set up all of the tax codes you will use in the default tax location first, then add additional tax locations and edit the codes for each as necessary.

From the File menu, select Preferences > Company and then select Sales Tax from the list on the left.

If you use multiple tax locations, adding or deleting a tax code in one location adds or deletes that code in all locations. If the taxing instructions for a code are different in different locations, edit the tax code as appropriate for each affected location. Editing a tax code in one location does not affect that tax code in other locations.

To add or edit a tax code:

Select Add Tax Code or Edit Tax Code within a tax location. You may have to scroll the page to view all of your choices.

The Add/Edit Tax Code Wizard is displayed. Select Next or Back to move between pages of the Wizard.

Enter or edit the Tax Code (3-character maximum) and Tax Name, specify the tax rate(s), and set other tax options for this code as appropriate. Select Help (<F1>)on any page for more information about the settings on that page.
When done, select Finish.
Specify the default tax code when creating a new department at the bottom of the preference page.

The taxing instructions of the specified code, as defined for your default tax location (see below), will be suggested for new departments and to the items in that department.

Select Save.

If a tax code is no longer needed, it can be deleted by selecting Remove to the right of the window.

Select Add Tax Location or Edit Tax Location, as applicable. You may have to scroll the page to view all of your choices.

The Tax Location Wizard is displayed.

Enter or edit the Tax Location Name.

(Pro) If shipping charges in this location are taxable, select the check box for that option and select a tax code to assign to the shipping charges.

Select OK.
Add or edit your tax codes for this location, if necessary (see above).
Select the default tax location for this store at the bottom of the page.

The taxing instructions of the specified location will be the default for all sales.

Select Save.

The first tax location in the list, named Local Sales TAXES, cannot be deleted, but it can renamed or edited to specify additional taxing instructions. Other tax locations can be deleted by selecting Remove to the right of the window.

Basic Note: The tax location Exempt is hard-coded and not displayed in your tax preferences. This location is used for customers you have marked as tax-exempt and has an automatic 0% tax rate for all tax codes. You can filter sales reports by this hidden tax location.