I'd like some direction on how to set up sales tax for Texas...
The general tax rate in Texas is 8.25%. However, only 80% of "data processing" sales services (data migration, cleanup, etc) is taxable. The other 20% is not taxable.
For example, I charge a client $1,000 for data processing and I charge them $66 sales tax (1,000 * .8 * .0825). When I submit the report to the state I have to report:
Total Sales: $1,000
Taxable Sales: $800
Sales Tax: $66.
I asked copilot for help which gave me some good direction except I couldn't figure out the last step. It suggested creating 2 tax areas.
Tax Area 1: Add a single jurisdiction for 8.25% tax.
Tax Area 2: Add 2 jurisdictions. (1 for 8.25% and 1 for non-taxable)
The last step, which I couldn't find was to "configure the sales tax calculation" for area #2. "In the "Sales Tax Calculation" settings, specify that 80% of the sales amount should be allocated to the taxable sales tax item and 20% to the non-taxable sales tax item."
I don't know where to find the sales tax calculation configuration screen.
