Here's how to have your taxes calculated automatically in Urable:
Turn on taxes globally by toggling 'on' in Preferences > Tax Rates (see screenshot)
Turn on taxes at the service level (see screenshot)
click into a service and next to Taxable click "On"
click 'Off' if you don't charge sales tax on services in your state
Turn on taxes at the product level (see screenshot)
click into a product and next to Taxable click "On"
NOTE: Customers can be marked 'tax exempt' in their customer profile
In shop vs. In field jobs:
In shop services and products are taxed according to the business address
In field services are taxed depending on if they are an 'Origin' or 'Destination' state
If an “Origin” state then they are taxed according to business address (postal code determines appropriate tax)
If a “Destination” state, they are taxed according to where the job is done
TaxJar takes care of calculating all of the above
Economic Nexus
A monetary (e.g. $100,000) or transactional (e.g. 200) threshold set by each state
Once this threshold is met for 'in field' jobs in a 'destination' state, you are required by law to charge/collect sales tax for these jobs. These thresholds are set at the state level so businesses are responsible for knowing these thresholds (and knowing when they reach them) in any state where they perform in field jobs
Tax Rate and the Virtual Shop:
The Virtual Shop will use the (custom) default tax rate you set even if it is different from the tax rate recommended by TaxJar ONLY IF IT IS IN SHOP.
For example: if TaxJar determines your tax rate is 7% but you set a custom rate of 6%, it will use 6% in the Virtual Shop if it is an IN SHOP job.
Taxing Consumables
for those that operate in a state that requires you to collect sales tax on just the materials portion of a service and not the labor, you can now set a preference for this as follows: (see screenshot)
click into a service and click 'edit'
scroll down and click "Additional Options"
scroll down to the "Tax only consumables" toggle
if this is toggled 'on' it will use the information in the consumables tab within this service to just calculate tax on the total of the materials rather than the total on the entire service if your prices are inclusive of labor
if you are in a state that requires that only certain products are taxed: (see screenshot)
go into a service
click "Consumables" along the top and click 'edit'
change the taxability of each product with a toggle next to the product
Tax Line with Fees & Discounts (see screenshot below)
FEES (i.e. credit card fee) - should come after taxes on the invoice as fees are nontaxable
DISCOUNTS (Friends & Family, Veterans) - should come before tax because you want to tax the actual amount that you collected on that product or service
NOTE:
technically and legally businesses should always include a tax line as even if something is not taxed, this will at least include a tax line of $0 which is necessary when sending something over to Quickbooks
tax can now be included in a Proposal as there is an 'in shop' or 'in field' at the top of the proposal that you can toggle
with GST (Australia) there are two (2) options:
you can consider turning off "Automatically Calculate Tax Rate" toggle in Preferences > Tax Rates to completely remove the tax line and then increase your prices by 10%, or
if you still need some kind of tax line under the subtotal, then after turning off the 'Automatically Calculate' you can manually create a 0% tax rate and label it as something like “10% tax included in pricing”
with VAT (UK)
it would be important to keep the tax line in there and just zero it out instead of removing it completely.
to do this you can go to Preferences > Tax Rates, toggle "Automatically calculate tax rate" off
click "Add a tax rate," enter 0%, label it "VAT" and make sure you also set it as a default tax rate.