Tax EXEMPTION settings

• Tax Exempt settings refer to whether or not parts or labor charges are taxable or tax-exempt.

  • Note: This term is not referring to how to tax supplies or hazardous materials, or to setting tax percentages.

• A line item will inherit the vehicle’s tax exempt settings.  In turn, a vehicle will inherit a customer’s tax exempt settings.

Tax SCHEDULE settings

• Tax Schedule settings refer to which of the configured or default Tax Schedule tables are used to calculate the tax on a Customer, Vehicle, or Line Item.

• A line item will inherit the customer’s tax schedule settings.  A vehicle will inherit the vehicle’s tax schedule settings.

How Tax EXEMPTION settings are applied:

• When you create or edit a customer in ALLDATA^® Manage^SM you assign a Customer Type.

  • The Customer Type tax exempt settings prefill the tax exempt fields in the Customer window.

• When you add a vehicle to a customer, the customer’s tax exempt settings are prefilled on the Vehicle window.

• If you change the CUSTOMER'S tax exempt settings after you add the vehicle, the VEHICLE tax exemption settings do NOT change.

  • Edit the Vehicle to change the vehicle’s tax exempt settings.

  • Changes to the Tax Schedule will ONLY be reflected on tickets created AFTER the change is made and saved/applied, and going forward.

    • New tax rates will NOT automatically apply to old tickets.

• You can override a line item’s tax exempt settings by selecting (or deselecting) the Tax Exempt box on the Select New Job Items window.

• When items (other than Miscellaneous Charges) are added to an order, the vehicle's tax exempt settings are assigned if there is a vehicle assigned to the order.

  • If no vehicle is assigned, the customer's tax exempt settings are assigned to the job items.

• Miscellaneous Charges use whatever tax exempt settings are assigned to them, regardless of vehicle or customer tax settings.

How Tax SCHEDULE settings are applied:

• When you create a company database, your shop's default tax rates are set.

  • To configure multiple or compound Tax Rates, refer to the Tax and Markups procedure.

• Each schedule has a matrix for parts and labor tax rates.

  • On the Tax Rates Setup page, configure up to 10 tax rate matrixes and assign at least one tax rate matrix to each tax schedule.

  • Assign a default tax schedule for the company database.

• When you create or edit a customer, assign a Tax Schedule.

• When you add a vehicle to a customer, select a Tax Schedule to assign to the vehicle.