Assign Taxtype

The Taxtype field is a table driven field which is used in both the Customer and Shipto files to determine whether the Customer or Shipto record is treated as taxable or non-taxable for sales tax processing purposes.  The Taxtype field for new customers can be defaulted using the Customer default file or it can be manually assigned by the operator as the new record is entered.  The Taxtype field used for each Customer or Shipto is usually determined by whether or not the customer has filled out and returned to you a Resale Certificate.  A resale certificate is a document which certifies that the merchandise being purchased from you is being purchased for resale and that the purchaser is responsible for the collection of sales tax from the end-user of the item.  Most states require that you have this certificate on file before you may sell to a customer without charging the appropriate sales tax rate.  In the absence of such a certificate, most states (in which you are required to collect sales tax) will hold you responsible for collection and payment of the tax regardless of whether or not it is paid to you.  The standard Taxtypes are listed in the Application Overview section of the Sales Tax Processing Documentation.


Assign Taxcode