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Adding a Sales Tax Code

Jeremy Powers avatar
Written by Jeremy Powers
Updated over 10 months ago

To Add a Sales Tax Code:

1. In the navigation bar, go to Settings, and then click on Glossary.

Glossary tab in settings

2. In the glossary, there is a tab labeled Sales Tax Codes, click into this tab.
This will show you a list of all of your sales tax codes, to edit one already there, click on the sales tax code. To add a new one, click on the button.

3. After pressing , enter your sales tax information.
Tax Code: Will be the code to identify the sales tax of a specific city, state, county, etc. Check the code and edit if needed.
Name: Will be the name to identify the sales tax of a specific city, state, county, etc.
State Abbrev.: Will be the state in which this sales tax code is being created for.

Information fields to fill out for adding sales tax code

Follow Along in this example for creating a sales tax code for the state of Virginia:

1. Fill in the Tax Code, Name, & State Abbreviation for this new Sales Tax Code

Sales tax code fields filled out with example of the state of Virginia


2. Click the to fill in the "Authority Name" and the sales tax percentages for each sales category.

Sales tax percentages for each sales category when adding a new sales category


3. Make sure you check the taxable goods and services that your state allows. For example, the State of Virginia does not allow you to tax Design Fees or Time. So these need to be changed to 0%. When finished click on the Save button.

For example: State of Virginia does not allow tax on Design Fees or Time


4. This will direct you back to the sales tax code information screen where the information can be checked over once more.

Check over sales tax calculations on the sales tax code information screen


5. Next, the Sales Tax Withholding Account must be entered. Typically this will be the 21000 Sales Tax Collected Account.

Enter the Sales Tax Withholding Account


6. Right under the Sales Tax Withholding Account is the Taxable Defaults for this sales tax code. Since the State of Virginia doesn't allow Design Fees or Time to be taxed, these boxes need to be unchecked. This will then make the Component defaults come in as "Non-Taxable".

Check off the applicable Taxable Defaults for the Sales Tax code you are creating



7. Lastly, Save this Sales Tax Code & use it on any Projects where it is applicable.

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