Sales tax based on 80% of invoice amount

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Posted on by Kathryn Warner

I am trying to figure out how to set up Sales in SL. Apparently, in Texas, we are supposed to charge a set percentage for sales tax based on 80% of what we sell our products for. How can I set this up?

Thanks

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CFROTON 4,710 on at

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RE: Sales tax based on 80% of invoice amount

Brenda,

Here is the suggested setup:

1. Set up sales tax with Basis = Tax Basis Price with appropriate tax percentage.

2. In Inventory items for the item you want taxed enter the Tax Basis Price = % of the selling price. For example 10 selling price, enter tax basis price as 8

Hope this helps,

Carolyn

MSDSL Technical Support
Community Member Microsoft Employee on at

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RE: Sales tax based on 80% of invoice amount

I have the same issue. How did you resolve the 80% issue for certain items?
Kathryn Warner on at

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RE: Sales tax based on 80% of invoice amount

Can that be done by product category or class?
Community Member Microsoft Employee on at

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RE: Sales tax based on 80% of invoice amount

Kathryn,

I can think of only 2 ways to sort of handle this.

Make the tax % 0 .8 X actual rate like 5% using the resulting rate of 4%.

Or,

Make multiple lines on the invoice . Tax one line and nothing other.