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Examples of Special Taxes |
  
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Examples of Special Taxes |
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There are often special tax setups needed. Review this list for ideas of ways to handle your needs. Contact your dealer or POSitive Software Company for help.
(see also Special Taxation Setup)
Tax Free Day
Occasionally a Tax Free holiday is declared so that all sales are non-taxable.
The best way to implement a tax free day is to simply EDIT the existing tax rate to 0.00 before making sales on the day of the tax free holiday. At the end of the day, EDIT the existing tax rate and re-assign the normal tax rate.
DO NOT attempt to add additional tax rates. If you have questions, please contact your dealer or POSitive Software Company.
Track State and City Tax Separately
Note that the total tax charged will be 7.8% (5.0 + 2.8), but by having two separate tax rates applied to Merchandise Tax Category, then your sales reports will break down totals for State and for City tax rates.
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A Canadian GST and PST Example
(calculate tax on tax as with GST and PST or hospitality taxes) Here we have two tax rates tracked separately under Tax Description 1 and Tax Description 2. This allows for calculating a tax on a tax.
TAX ON TAX If I edit the P.S.T tax rate, the term "Include Previous Tax" means calculate the GST tax (because it is listed first) and then calculate PST to include the taxes of the GST.
Normally, the "Include Previous Tax" remains unchecked. Only when you want the tax to be applied again to the first tax would you activate this feature.
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Luxury or Hospitality Type Taxes
Some communities charge a higher tax if the item sold is over a specified dollar amount. POSitive can handle these situations. For example, Polk County charges 4% tax on items under $100.00 and a 6% tax on items over $100.00. Here is how you set this up in POSitive.
MORE THAN $100.00 In your All Tax Rates section at bottom right, add an entry of tax on an item sold for less than $100.00 Note that the Max Amount is set at 100.00. This rate will be applied if the selling price of an item does not go over the Max Amount.
MORE THAN $100.00 In your All Tax Rates, add an entry of tax on an item sold for more than $100.00. Note that the Max Amount is left at 0.00. This means that there is NO LIMIT on the selling price of an item. Optional - If the customer is to see the amount of the luxury tax separate from the normal tax, use the Tax 2 Description for this second rate. If the two taxes are to be combined into one total, select the Tax 1 Description for both tax rate entries.
SEQUENCE OF TAX RATES IMPORTANT RULE: The sequence of tax rates is critical. POSitive reads the first entry (City <100) first to see if the item being sold applies to this criteria or not. Then it checks the next rate (City>100 If you have chosen to county and city taxes separately, then each will need a less than and more than tax rate and must be grouped together with the less than < value always coming first in the group.
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