U.S. Taxes

[jsh8286]

We have to set up a U.S. database is Sage Accpac ERP. We are selling to each state potentially. Since each states taxes are different we wern't if we need to set up each state as an Authority or is it simply regardless of who we sell to we just charge the state tax from which we are selling the product.

Thanks in advance for any info posted.

 

[ettienne]

State taxes are determined by the point of delivery. If customers walk into a store and purchase goods in store then taxes are determined by the location of the store. If you ship goods to customers then the taxes are determined by the delivery address. This is a very simple view of taxes - there are many exceptions - it might be a good idea to consult a tax accountant. Also check out Avalara, they have a plugin that will calculate sales taxes correctly in Accpac

http://www.avalara.com

 

[ettienne]

http://www.avalara.com/accounting/sage-erp-accpac

 

[jsh8286]

Thanks ettienne...much appreciated.

 

[ettienne]

To expand on the taxes a bit.
For each state you will have a tax authority and for each county within the state you will also have a tax authority. So Florida will have a Florida tax authority and 50+ tax authorities for the counties. Then you setup the Tax Groups, each tax group will have the state tax authority as well as the county tax authority. In your tax rates you set the state tax rates for the state tax authority and then the country discretionary tax rate for each county tax authority. In Florida you would have the FL state tax rates of 6% set for the FL tax authority, and then each county will have it's rate set with it's tax authority.
The tax groups then bring the sate tax and county tax together and calculates the correct sales tax for the county - hopefully.

 

[jsh8286]

Thanks ettienne again for your information. Most helpful. We will be putting through it paces tomorrow in office.

Will post if we have any issues.

Thanks again.