V9 - Sales taxes and tax exemptions

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SOS Inventory supports sales taxes for US-based accounts, as well as taxes for our international customers. If your organization uses QuickBooks' automated sales tax feature, you must designate the reason for a customer's tax exemption, whether in SOS Inventory or in QuickBooks Online. 

 

Sales tax for US-based accounts

All sales transactions in SOS Inventory support sales tax. The way tax is handled depends on whether your company is linked to QuickBooks Online.

 

• If your company is linked to QuickBooks Online, SOS retrieves all your sales tax rates from QuickBooks. In QuickBooks, these tax rates can be found under All apps > Sales Tax > Sales tax settings).
  • Those rates cannot be edited directly in SOS. If you need to change them, you must change them in QuickBooks Online and then synchronize them to SOS.
  • When creating a sales transaction, if you are using the automated Sales tax center in QuickBooks Online, you will see a statement on the sales form informing you that QuickBooks will calculate the taxes.
  • After the transaction is saved and synced to QuickBooks, QuickBooks Online calculates the appropriate tax and syncs the transaction, with tax included, back to SOS Inventory.

 

• If your company is not linked to QuickBooks Online, SOS Inventory offers several options for handling tax rates.
  • Set a Default tax rate under the General sales settings (Tools & settings > Configuration > Sales > General).
  • Set a default Sales tax rate % for each location by using the Locations list (Tools & settings > Configuration > Lists > Locations) to edit each location.
  • You can override the tax rate on any given sales form, if you wish.

 

Taxes for international (non-US) accounts

For our international customers, your tax settings in QuickBooks allow you to define separate purchasing and sales taxes, as well as combined taxes and others, like VAT tax codes. When adding your items, you can define default purchase and sales tax codes. On transactions, you must provide a tax code for each line item on the transaction. When you add items to transactions, it will display either: (1) the default sales tax from the item definition as part of a dropdown list of available sales taxes on sales forms; or (2) the default purchase tax from the item definition as part of a dropdown list of available purchase taxes on purchasing forms.

 

If your SOS account is not connected to a QuickBooks Online account or is connected to one that does not have a tax center defined, then you can leave the tax blocks blank.

 

Discounts and sales tax

If you apply a discount on a sales transaction, SOS Inventory allows you to decide whether to apply the discounted amount before or after the sales tax. However, discounts must be enabled in QuickBooks Online to sync properly between SOS and QuickBooks.

 

Refer to Discounts and deposits (prepayments) for more information on applying sales tax on transactions that include a discount, as well as how to enable discounts in QuickBooks Online.  

 

Tax exemptions

If your SOS account syncs with QuickBooks Online and you use QuickBooks automated sales tax feature, you must indicate the reason for the exemption in the customer definition of each tax-exempt customer. For more information, refer to QuickBooks automated sales tax: Handling tax-exempt customers in SOS.