Overview
Tax handling in Jack spans several areas of the platform. Jack supports three types of tax:
Sales Tax — charged to the client on the Owner Price of an invoice or proposal.
Remittable Purchases Tax — a purchases tax you collect and remit to a tax authority. Sent to QuickBooks as a linked tax code and as a separate line item.
Non-Remittable Purchases Tax — a purchases tax that is absorbed as a cost of doing business; factored into the Builder Cost and absorbed into line item costs before syncing to your accounting program.
Once your tax codes and cost items are configured in settings, tax populates automatically across the relevant areas of Jack. The sections below explain how each tax type appears in each part of the platform.
💡For more details on configuring your Tax Codes, check out this article Setting Up Your Tax Codes.
Client Invoices
Client Invoices
Located within the Job Financials>Client Invoices tab of your Job.
Contract Value will reflect Owner Price that is shown in Estimate>Costings.
Let's look at an example Invoice:
Here are the Costings which generated the Invoice:
ℹ️Additional information on invoices can be found here: An Overview of Client Invoices
Proposals / Documents
Proposals / Documents
Located within the Documents tab of your estimate.
When a proposal document is generated, sales tax displays as a separate row beneath the total owner price in the totals section of the document. Purchases tax is not shown as a separate line item on the proposal. Instead, it is factored into the item total itself, meaning the price the client sees for each line item already includes any non-recoverable purchases tax applied at the cost item level.
Estimate drop-down along the right hand side allows you to customize what appears in the proposal. See related articles for more information on this How to send Documents
Here is an example:
Tax code for Estimate is set as: 8% Sales Tax 10% Purchases Non-Remittable.
Estimate line items show 10% Purchases Tax in Builders Cost 8% Sales Tax in the Owner Price:
How this appears within Proposal Document:
Purchase Orders
Purchase Orders
These are located within the Job Financials>Purchase Orders tab of your job. Here you can open or create a purchase order.
The purchases tax amount set on the Estimate>Costings tab will reflect in the tax field of the purchase order.
Example shows 10% purchases tax Estimate>Costings tab has Tax box marked to include purchases tax in Builder Cost:
Purchase Order displays that 10% purchases tax in the Tax field below:
ℹ️ Note: If you are not seeing sales tax calculate. You may need to visit the Supplier/Contractors contact to ensure the Tax box is selected.
Bills
Bills
Navigate to Jobs > Job Financials > Bills and open or create a bill.
Once your Tax Codes are configured, the non-remittable purchase tax amount shown on a bill will be attributed back to the relevant individual line item costings in your job budget. This gives you an accurate picture of the true cost of each line item, including any non-recoverable tax.
How Bills Sync to QuickBooks
Non-remittable tax is handled differently from remittable tax when a bill is pushed across to your accounting integration. Here is how JACK sends the data:
Example:
Component | Amount |
Cost item (base) | $1,000 |
Non-Remittable Tax (10%) | $100 |
Remittable Tax (10%) | $100 |
Total Bill | $1,200 |
What gets sent to QuickBooks:
What is sent | Amount |
Line item cost (base + non-remittable tax combined) | $1,100 |
Tax linked to remittable tax code | $100 |
Total pushed to accounting program | $1,200 |
💡 Tip: The non-remittable tax amount is absorbed into the line item cost before being sent to QuickBooks or Xero. It is not sent as a separate non-remittable tax code to your accounting program. Only the remittable tax percentage is sent across as a linked tax code.
Job Budget
Job Budget
Understanding the Tax column in your job budget
Navigate to Jobs>choose relevant job>Job Financials>Budget
The Tax column displays the non-remittable purchases tax amount that has been attributed to each line item in your job budget.
Column Reference
Column | What it represents |
Estimated Cost | The original budgeted cost from your estimate |
Change Orders | Any approved variations added to the job |
Gain/Loss | The difference between budgeted and actual costs to date |
Tax | The non-remittable purchases tax amount attributed to line items |
Projected Cost | The total projected cost inclusive of all of the above |
⚠️ Note: The Tax column reflects non-remittable purchases tax only. It is separate from any remittable tax, which flows through to your accounting integration in the usual way.