Tax rates

New stores start with three tax rates, Parts, Labor, and Fees, all at 0%. Set your real rates before you write the first invoice; tax is calculated from these when a ticket is saved.

How tax is applied #

Every line on a work order has a tax bracket, chosen from the dropdown beside the line. The bracket defaults by category:

• Part lines (stock and outside purchase) use the part rate.
• Labor lines use the labor rate.
• Fee lines use the fee rate.
• Discount lines carry no tax of their own; they reduce the taxable amount of the ticket.

You can change the bracket on any line, so a shop that taxes shop supplies differently from parts can create a separate rate and pick it per line.

Adding or editing a rate #

1. Open Settings and scroll to Tax Rates.
2. Click Add Tax Rate, or choose Edit from the dropdown at the end of an existing row.
3. Enter a Name, the Rate as a percentage (for example 7.25), the Category (part, labor, or fee), and the Exemption Amount.
4. Click Add or Update.

Both numbers must be 100 or less.

Exemption amount #

The exemption amount is the share of this rate that a tax-exempt customer does not pay, as a percentage. Most shops leave it at 100, meaning exempt customers pay no tax at all on lines in that bracket. If your jurisdiction only waives part of the tax for certain customers, enter that share instead, for example 50.

A customer is marked tax exempt on their customer record, where you can also store their exemption number. Invoices for those customers appear on the Sales Tax Exempt report so the paperwork stays together.

Deleting a rate #

Choose Delete from the row's dropdown. Existing invoices keep the tax they were saved with; only new lines are affected.

Related #

• Store details
• Reports for the Sales Tax Exempt and Posted Totals reports