Tax Codes
A tax code lets you combine different sales taxes into a defined
group; you can then apply the required taxes at one time. Once you have set
up your tax codes, Sage Simply Accounting automatically fills in the
taxes associated with a vendor or customer. This lets you apply the required
taxes for a vendor or customer who is subject to several different taxes,
without having to enter the taxes separately.
Which tax code is used in a transaction?
Sage Simply Accounting provides different ways to apply tax
codes. You can apply a tax code to any
item in a transaction, as the default for a customer or vendor, or
as the default for all new customers.
If there is a conflict, Sage Simply Accounting applies the first available
tax code according to the following list:
- Tax code assigned to a transaction item.
- Default tax code for customer
or vendor record.
- Default tax code for new
customers or vendors.
Tax Exemptions
If some of your customers are exempt from one or more
of the sales taxes
that you normally charge, you should set up tax codes that do not include
the tax, and use these codes for the tax-exempt customers. Sage Simply Accounting
prints the codes on invoices so customers can tell what they have been
charged.
Similarly, if you are exempt from paying tax to some
of your vendors, set up tax codes for vendors to whom you do not pay tax.
If you do sometimes charge or pay the tax to these customers or vendors, set up tax-exempt codes, and remember to set the Tax Exempt setting to
No on the Taxes tab in the customer and vendors records.
What do you want to do?
Change
the default sales tax used for a customer
Learn about
Tax Code Details window