Sales taxes are not uniformly implemented all across the United States of America. The sales tax differs in each state as the implementation of sales tax is given to the individual state to govern. Thus, it makes the computation of sales tax really complicated and messy.
Using the Deskera Mobile App, the computation of sales tax has never been easier. However, Deskera Books software is able to generate the sales tax here without any third-party software or any tax consultant. Hence, there is no need for you to source your own tax consultant.
Fig.1: Indicate where you can collect tax
When creating an organization on Deskera Mobile App, you’re required to indicate the states you can collect sales taxes. This is known as Nexus. Nexus can be defined as the presence the seller has in the state that requires the seller to register, collect, and remit sales tax in the state. Nexus applied to e-commerce businesses as well such as Etsy, Amazon, E-bay, Lazada, and other online businesses.
Click on the drop-down arrow as shown in Fig.1 and select the states you have Nexus on Deskera Mobile App. Next, enter your business billing and shipping address. Do take note to indicate the accurate and complete address together with the state code in order for the system to generate the right sales tax rate.
Fig.2: Product Creation Fig.3: Creating an Invoice
Next, make sure that you indicate the tax category for your products when you are creating products in the Product Module. The tax category will appear right after you enter the product name. Choose the tax category relevant to your products. To view the calculation of sales tax, go to the Invoice Module, and create a sales invoice.
On the invoice page, tap on the Compute Tax button. The sales tax rate will be computed and you can view it on the total tax amount column. If you did not indicate the states you can collect the sales tax as per Fig.1, you won't be able to see the 'Compute Tax' button when creating a new sales invoice.
In the next article: Read more about the computation of sales tax when creating products.