The advanced sales tax module is required to calculate the following sales tax rates. This optional module allows the user to create sales tax groups. Contact an EMBS representative to add this option to EBMS. Review the Inventory Tax Groups section for more details.
Some states require additional sales taxes for a specific group of products. For example, the state of Virginia has a sales tax rate of 5% for non food (4% is state and 1% is county). An additional 2.5% is levied for food items. Prepared food requires an additional 4% for a total of 11.5%.
The Virginia configuration described above would require the following five sales tax records:
Review the Establishing Sales Tax Rates section for more details.
An alternative method to calculate sales tax including luxury and VAT taxes is the cloud TaxJar sales tax subscription. Review TaxJar > Overview for details.
Since rates are determined by inventory items, the following tax groups must be created:
Review the Inventory Tax Groups section for more details on creating these tax groups.
Provinces that collect GST and PST tax rather than a combined HST require the advanced sales tax module. For example in the province of Manitoba, service labor and fuel are exempt from GST tax. Tax groups should be created for each non-taxable product group.
Create a tax record for both GST and PST tax. Review the Establishing Sales Tax Rates section for more details.
Create an inventory tax group for each group that is taxed differently by these two sales taxes. Review the Inventory Tax Groups section for more details.
A luxury tax charges a sales tax percentage for specific products such as expensive cars or jewelry. Certain luxury taxes charge luxury tax for items over a determined limit. Any luxury tax with a minimum or maximum requires advanced sales tax module. Complete the following steps to create this task.
Review the Establishing Sales Tax Rates section for more details.
Value added tax is a form of consumption tax that is a tax only on the value added to the product or service. Create an inventory tax group if the value added tax applies to a specific group of products. Create a value added tax record. Review the Establishing Sales Tax Rates section for more details.