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Old 05-19-2004, 11:47 AM
StephanieLee StephanieLee is offline
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Join Date: Jul 2002
Posts: 6
Multiple & different sales tax rates on one invoice

Here in the State of Texas beginning on July 1, 2004, we have to collect local sales tax on services based on the rate where the service was performed, and collect the local sales tax on goods sold based on our own tax rate. We are a sign company, and a typical scenario would be that we sell a sign and install it in a neighboring town. On the actual cost of the sign we have to collect the State tax (6.25%) and our own local tax (2%). On the install portion we have to collect the State tax (6.25%), the local tax in the town where the sign was installed (1%), and a Transit Authority Tax (1%). Basically, every item is subject to the State tax, some items are subject to one local tax, and some items are subject to a different local tax as well as possibly a Transit Authority tax. And they have to all stay separated for reporting purposes.

What I tried to do was make Sales Tax Items for each of the different rates, then make Sales Tax Groups for the sets that go together. Then I followed the instruction in the manual for Special tax situations where "Some items on a sale are taxed at one rate, some at another rate". This requires that you NOT use the Tax field, but that you subtotal items and enter the Sales Tax item in the body of the invoice. However, the Sales Tax Groups are not available to me there... only in the Tax field at the bottom of the invoice. Am I missing something or can you not use the Sales Tax Groups in that manner?

Does anyone have any ideas as to how accomplish this? A bunch of people in Texas are going to be in the same fix as me come July 1st!!!

I am using Pro 2002. Would the newer version handle this any better?

Last edited by StephanieLee; 05-19-2004 at 11:58 AM.
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Old 05-20-2004, 06:40 AM
gibbo gibbo is offline
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Join Date: Oct 2001
Location: Australia
Posts: 1,595
From someone outside looking in.....
In the US, the tax status is attached to the Customer - normally assumed that because they live in a particular state, they will always be subject to a similar tax rate on all items they buy. So we add a tax code to the Customer. then we designate the item as either taxable or nontaxable. In your case this no longer works! In Australia we have a Goods and Services Tax where items have a tax code attached, not the Customer. We can have a default tax code for an item, but change that to another tax code simply by selecting the code from a list. This allows us to alter the tax rate on items at will. It sounds like you need this in texas, because what you currently are using will never work through the tax Code system. The only other way is to add lines at the end for the tax, which is the way it used to be.
John Gibson
johngibson at
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Old 05-20-2004, 10:23 AM
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Diceman59 Diceman59 is offline
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Join Date: Feb 2003
Location: Cornwall UK
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I hope Charles Kennedy reads this because his Liberal Democrats have a similar system in mind for the UK !! And we thought triangulation was complicated.

QB Pro 2004
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