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: Sales invoice creation
On the invoice page, once you have added the product in the line item, the tax rate will be automatically computed. If the contact you are generating the sales invoice are residing outside the Nexus states, the tax rate won't be computed and will be shown as zero.
In the next article: Read more about the computation of sales tax when creating products.