Sales Tax Groups provide ServiceTrade customers with the ability to individually manage sales tax rates and move away from centrally managed tax rates.
This article will walk you through Sales Tax Group settings and options in ServiceTrade.
What is a Sales Tax Group?
A Sales Tax Group is a geographic area that is covered by a certain set of sales tax jurisdictions and has certain combined sales tax rates as a result.
Example: the sales tax group 'Seattle WA' might represent the ZIP codes in the city of Seattle, which are subject to the sales tax for the state of Washington, King County, and the city of Seattle, which have a combined rate of X%.
With Sales Tax Groups in ServiceTrade, you can map these combined sales tax rates to specific ZIP codes (and even ZIP+4). For example in St. Louis, 63101-1201 has a different combined tax rate than 63101-1809.
Sales Tax Settings Options
To update your Sales Tax Settings:
- Click on your Profile Picture in the top right.
- Click on Account Settings to go to your Account Settings page.
- At the bottom of the page, click on the grey "Sales Tax" accordion to expand it.
Default Location Taxability
Newly created locations will get this taxability setting by default. The options in the drop-down menu are "Taxable" and "Non Taxable." Previously this setting was available under the Account Preferences section in Account Settings.
Sales Tax on Transactions
- Manual: This setting is for if you would like to manually assign a sales tax rate to each quote and invoice that you create. Under this setting, ServiceTrade will not assign a sales tax rate to your transactions.
- Sales Tax Groups: This feature will allow you to manage sales tax rates via sales tax groups in ServiceTrade. ServiceTrade will assign a sales tax rate to your transactions, based on your sales tax groups and the postal code of each transaction's location.
Location Sales Tax Group Assignment
When creating or editing a Location, you now have the ability to assign a Sales Tax Group based on location assignment rather than Zip Code. The selected Sales Tax Group will be used for all Invoices and Quotes created for this location.
This is useful for Jurisdictions in states such as Washington and Louisiana whose tax rates are not always determined by Zip Code alone.
If the Location is set to Taxable, Sales Tax Groups is enabled, and you have created Sales Tax Groups, a new field will appear called Location Tax Group. Here you can select a Sales Tax Group that you added. You can only select Sales Tax Groups that exist in the same state as the Location.
The Location Tax Group is a combination of Tax Group Code and Tax Group Name (taken from the Sales Tax Groups page in ServiceTrade).
Note: The selected Sales Tax Group will override the Location's Zip Code Sales Tax Group assignment.
Overview of the Sales Tax Groups List Page
From the Sales Tax Groups List Page (above) you can take a variety of actions:
- Create a sales tax group manually.
- Bulk import sales tax groups.
- Search by Tax Group Code, Name, State, and/or Postal Code for a specific set of sales tax groups.
- Export your current sales tax groups to a spreadsheet.
- Edit or delete individual sales tax groups.
More Sales Tax Group Information
- For more information on creating, editing, and removing sales tax groups, see this article.
- For more information on bulk importing sales tax groups, see this article.