Tax Items represent taxes collected by an individual entity and are added to Tax Groups to simplify order entry. You can manage them under Settings/Accounting/Tax Items or Accounting/Settings/Tax Items depending on your permissions.
Note: New Tax Items and changes to existing items automatically show up under Accounting/Chart of Accounts/Liabilities. While some changes can be made to an account from the Chart of Accounts, if you need to change the name of a Sales Tax Liability, it must be done from the related Tax Item page.
Adding Tax Items
1. Enter a Tax Item Name that indicates the area collecting taxes.
Note: The Tax Item Name is for internal use only and changes to this name must be done from this page.
2. Enter the related Tax Rate.
Example: Salt Lake City Tax, 1.55%
3. Enter the Name on Documents that your customers will see on their invoices.
Note: This can be the same name as the Tax Item Name or you can edit the name for clarity.
4. Enter the Municipality Name and Account Number as optional references for accountants.
Note: Tax Agency info is not visible to customers.
5. Select at least one Tax Group for this Tax Item in order to charge or assign sales tax to your customers' orders.
6. Click Save when you're done.
