Best practice for NOT collecting tax

matttrax

Wondering what some best practices are for NOT collecting tax. I don't mean marking and un-marking customers or orders as tax liable.

We collect tax in some states and not in others, but we import tax rates for every city / county / state. And everyone has a Tax Area code, regardless of whether or not we collect tax for them.

Not looking for a 3rd party product as I know there are a ton of them out there. Just ideas on how you have handled this in the past. I am by no means a tax expert, but have good general knowledge of how the tables relate and the entires that are made during setup and posting.

Thanks.

ara3n

The way I suggest if customer maintains all the tax area codes is to assign all customers tax area codes, and uncheck or Check Tax liable flag.
Since tax is calculated based on where you are shipping to, you will have to do it on ship-to address as well.

When you run NAV reports and send out checks to every state or (reporting jurisdiction), you'll have both taxable sales and non taxable sales in the reports. That would be my main reason for the above suggestion.

Alex_Chow

matttrax wrote:

Wondering what some best practices are for NOT collecting tax. I don't mean marking and un-marking customers or orders as tax liable.

The easiest way is to mark the orders tax liable yes/no.

The other way is to default Tax Area Code as NONTAX to indicate that it's non-taxable. But you will need to create a lot of code for each nontaxable jurisdiction.