V8 - QuickBooks automated sales tax: Handling tax-exempt customers in SOS
SOS Inventory subscribers who use QuickBooks Online’s automated sales tax feature can manage the status of non-taxable customers, as well as those who are taxable, within SOS. SOS Inventory enables the Taxable field of the customer Edit page (Quick add > Sales > Customers) by default. If you uncheck the Taxable box, a new field appears: Tax exempt reason. The drop-down list for this field includes the following options:
- Federal government
- State government
- Local government
- Tribal government
- Charitable organization
- Religious organization
- Educational organization
- Hospital
- Resale
- Direct pay permit
- Multiple points of use
- Direct mail
- Agricultural production
- Industrial production / manufacturing
- Foreign diplomat
- Other
If a customer is tax-exempt, selecting the Tax exempt reason is required. As is true for any tax-exempt customer in SOS Inventory (even those who do not use QuickBooks’ automated sales tax), the check boxes in the Tax column on sales transactions are grayed out. SOS will not add any sales tax, regardless of what is selected in the Tax amount or percentage fields.
Changing a customer’s tax status
If your customer’s tax status changes, you can make that change to the customer definition in SOS Inventory or make the update in QuickBooks Online.
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