The Retail Product Taxes tab lets you determine how taxes are applied for the retail product.
Note
Taxes are configured and managed by IDI. You can view the tax structure via the IDI Desktop Client main menu. Select Applications > Tax Management.
Taxing Rules for Tax Class and Exemptions
Taxing rules vary from state to state when it comes to shipping charges on an item. Depending on the state a product is being shipped to, some states apply shipping charges differently than normal retail products. As a result, the Tax Class for a retail product can be incorrectly charged if it's assumed that all retail products belong to the same equipment tax class. Tax Class is the method for changing the way in which taxes are applied to a particular item. Identifying the tax class that is configured on a Retail Product, and the Ship To Location, determines the taxes that need to be applied.
Designating the tax class for an individual retail product enables shipping retail products to be taxed correctly.Set the Tax Class to one of the following:
Equipment - Equipment class is the most common tax class used by retail products.
Shipping Charge - Shipping charge is a tax class that should only be used by retail products that represent shipping and handling charges.
Additional field descriptions:
Subject To E911 - If checked, the Subject to E911 checkbox enables E911 taxes to be applied to a retail item. If left unchecked, the E911 taxes will not be applied.
Tax Exempt From checkboxes - The Tax Exempt From check boxes control the assignment of the indicated taxes. Checking a checkbox will cause the indicated tax to be exempt from the retail item.
Extended Exemptions:
Add Federal
Add State
Add Country
Add City
Add Regional
Note
To change the override tax jurisdiction on a shipping contact on a Sales Request, permissions must be enabled.
Setting the Type of Tax on a Retail Product
There are three different types of default taxes that can be applied to a retail product.
Store Tax - The tax amount that can be inherited from the store tax that is set up on the Store Info tab on the Edit Location window. If a product's tax is set to be the store tax tab, the first column of the product's location row contains the store symbol ().
Tax Exempt - Means that this retail product will not have any tax associated with it. If a product is set to tax exempt, the first column of the product's location row contains the tax exempt symbol ().
Product Tax - The retail product defines its own tax percentage. If a product's tax is set to Product Tax, the first column of the product's location row contains this symbol ().
To set a product's tax as its store tax:
RIght-click the Location row to edit and select Use Store Tax.
The symbol to the left of the row is now a store icon (
).To edit a tax for a product:
Right-click the Location row to edit and select Edit.
This displays the Edit Retail Product Tax window.
Click the radio button for Use Product Tax
Make any necessary changes to the tax fields.
Click Save to keep these changes.
Now on the Tax Tab window, the symbol to the left of the product's location row is (
).