Mark Customer as Tax Exempt
If your customer is tax exempt, you will need to mark them as tax exempt in ChargeOver, so that ChargeOver will know not to calculate tax for their invoices.
- Find the customer in ChargeOver that you want to exclude from taxes
- Click on the
Edittab and select More advanced options
- Scroll down and select the checkbox next to the option: "Customer is exempt from taxes"
Taxes on Invoices
How can you tell what was taxed on the invoice in ChargeOver and what was not?
ChargeOver will show you detailed information about the type, amount, and rate for each taxable item on an invoice.
When you look at the invoice details, if tax was charged on the line then the line will have a "T" for taxable next to it. You'll also see the total tax reflected at the bottom of the invoice.
Additionally, if you hover your mouse pointer over the "T", ChargeOver will show you additional details about the amount and rate charged for that specific line.
Set Up Sales Tax
ChargeOver offers built in tax calculations based on tax rates you create. You can customize these rates base on country, state, or city.
If you only have a couple of tax rates you need to configure, or are charging a flat rate in your state, here is how to do it.
Create a Tax Rate
First, head over to your Settings and select
Add-Onsthen More Add-Ons
Search "Taxes" and click the
Tax Ratesthen New Tax Rate
- Name the tax rate and decide what location the tax rates will apply to
- You can restrict the rate to a particular city, state, and even postal code
If you want to restrict the tax rate to a state, only fill in the state blank. If you want to restrict the tax rate to only the zip code, fill in the zip code AND state blanks.
- Scroll down to the Tax Code section where you can configure your Accounting Tax Code
- If you sync with QuickBooks, you must put an Accounting Tax Code in this box that matches the name of the tax that you have configured in QuickBooks (for example: GST, HST etc)
- This field is optional, and only used in situations where you use charge sales tax in multiple states and use multiple sales tax codes in QuickBooks to track this (e.g. you have more than just TAX and NON in QuickBooks)
- At the bottom of the page, you'll find more settings you can fill out, like
- Accounting Tax Item
- The percentage of a product/ service that is exempt from taxes
- The dollar amount of a product/service that is exempt from taxes
Now your Tax Rate has been created!
Keep in Mind
- To calculate taxes for your customers, they must have an address that matches a state or region you charge tax in
- The products on the quote or invoice must also be marked taxable