You can assign a tax exception group to a product record. A product in a tax exception group can be always taxed, subject to a reduced tax, or never taxed. You can also assign a tax exception group to a price line record when the group includes all products in the price line.
The tax exception group setting for a product's price line is used only if the tax exception group setting for the product is blank.
Use the Product Tax Exception Groups screen to assign tax exception groups. The same screen is used for products and price lines. When you access this screen from Product Maintenance, the tax exception group assignments are associated with the product. When you access this screen from Price Line Maintenance, the tax exception group assignments are associated with all products in the price line.
To assign a tax exception group to a product or price line:
From the Maintenance menu, select Product to display the Product Maintenance window.
From the Additional Data menu, select Tax Group Maintenance to display the Product or Price Lines Tax Exception Groups window.
The system displays all tax exception groups in the Tax Exception Group column.
In the Always/Never column, for each tax exception group, enter Always or Never to indicate if the tax exception group is always taxable. Leave the field blank if the tax exception group does not apply to the product or price line.
Note: The setting on this column always overrides the customer's tax exemption status on the Sales Tax window. For more information, see Adding Sales Tax Exempt Numbers to Customer Records.
In the Reduced Rate field, use the check boxes to indicate if the product is taxable with a reduced tax rate.
Select the Always Taxable in Avalara check box to have the Avalara system always apply tax to the item. This overrides any tax exemption on the order. It allows you to make sure that you collect tax on items that should always be taxable, even if a customer has a tax-exempt certificate code on the order.
See Also:
Sales Tax Exception Groups Overview