When tax is calculated for an order, the Bill To company pays the tax based on the Ship To destination of the order. However, a non-profit association or other business entity may be exempt from paying taxes in certain jurisdictions. If a company has tax exempt status in the Ship To destination, the company will not charged sales tax on the order. See the "Specifying Tax Exempt Status" section in the Sales Tax chapter of the Aptify 5.5 Accounting and Financial Systems Integration Guide for for more information.
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Whether an order is taxed depends on if the Bill To company is tax-exempt in the Ship To location. For example, Acme Inc. is tax-exempt in New York but not in Ohio. When Acme Inc. is the Bill To company and the order ships to Ohio, the order is taxed. When Acme Inc. is the Bill To company and the order ships to New York, no tax is charged on the order. |
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- Open the Companies record.
- Click the Details tab.
- Click the Tax Exempt sub-tab.
- Click the New icon to open a new Company Tax Exempt Code record.
- Specify the sales tax rate from which the company is exempt in the Sales Tax field.
- This field links to the Sales Tax service. See Managing the Sales Tax chapter in the Aptify 5.5 Accounting and Financial Systems Integration GuideInfrastructure for details.
- This field links to the Sales Tax service. See Managing the Sales Tax chapter in the Aptify 5.5 Accounting and Financial Systems Integration GuideInfrastructure for details.
- Enter the company's tax exempt code, which it obtained from the appropriate taxing authority, in the Tax Exempt Code field. This field is required to save the record.
- Click OK.
- Save the Companies record.
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