Setting Up Default Tax Jurisdictions

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Setting Up Default Tax Jurisdictions

Default tax rates are applied to taxable items on a sale.  To modify the default tax jurisdictions:

 

1.Choose Settings | Locations from the Tools menu.

 

2.Select the default location from the Location List.

 

3.Press the Modify button.

 

4.Press the Sales Tax tab.

 

5.Press the Edit Default Sales Tax Jurisdictions button.

 

6.Select an Available Jurisdiction from the list on the left.

 

7.Press the right arrow button to add the jurisdiction to the Current Jurisdiction list.

 

8.Continue to add jurisdictions as appropriate.

 

9.Press the OK button on the Select Tax Jurisdictions screen.

 

10.Press the Save button on the Edit Location screen.

 

Tax rates are additive.  For instance, if you have a State tax of 6% and a local tax of 1%, the total tax applied to a taxable item will be 7%.  If your State or Government tax is taxed on the amount of the item plus any local taxes, you will have to calculate an effective tax rate based on the formula:

 

Effective Government Tax Rate = Actual Government Tax Rate * (1 + Local Tax Rate).