Tax Hierarchy
When we set up a customer account, there is a drop-down to select the customer's tax rule.
If you select out of scope (Tax exempted), this option does nothing when an estimate or invoice is created as the tax is still being calculated.
When we sell products in America to other companies (dealers) who are selling them to end users (we are a distributor, not a dealer)
then the dealers receive tax exemption for resale purposes because the product can only be taxed once, not twice.
We create hundreds of estimates and invoices for our dealers, who are our top customers reselling the products we stock and
it is leaving so much room for manual error to have to remember to remove the tax on every single line item.
I have customers calling my office multiple times a week, enraged that I charged them tax.
Here, you will see that Lighthouse Marine's Tax rule is out of scope, meaning it should always be 0% tax for this customer, but as you can see from the invoice the system created, it is still adding tax to the line item based on the product tax. This feature has no functionality, even though it looks like it does.
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Feature request created on behalf of Colleen Morrisey - colleen@southeasterndocksupply.com
Southeastern Dock Supply
It might be that the product has a sale tax rule that overriding the tax rule in the Sale Order header.
That's correct, Stan. It's because the product itself is taxable when an end user comes in to purchase the same product a dealer is purchasing. I need the tax exempt option for certain customer's only and for that option to override the hierarchy.
Hi Colleen. Got it. Do all of your DTC orders comes through an ecommerce system (e.g., Shopify)? If so, then you might consider removing the taxable rule from the products and let the ecommerce system take care of collecting sales tax, if it determines it to be necessary. That's what some companies I work with do.
No they do not come from an ecommerce system. I need the tax rule on for all products because we sell to retail customers and wholesale customers (some wholesale customers are exempt and some are not). Is it a huge to-do to have this function override the hierarchy?
Hello-- Can someone please escalate this? I desperately need the tax exemption feature to have a functionality.
I need this implemented SO bad! Can I pay extra money to have it done?! PLEASE HELP!
Still not going to let this go! My customers are SO angry with me! Please help!
I'm bookmarking this page so I can remind myself to message you periodically.
All I want for Christmas is for Cin7 to make the tax exempt tab functional PLEASE :):)
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