Examples of tax scenarios

OnSite can support all of your tax scenarios, including combined taxes, tax-inclusive pricing and tax exemptions.

Sales tax

A shoe store in San Francisco applies a sales tax of 9.5% to all its sales.

1. In OnSite go to Tools > Setup > Basics > Taxes.
2. In the Taxes area rename US Tax to TAX.
3. In the Tax Codes area double-click the default tax code, rename it Standard and set the rate of TAX to 9.5.

State and city tax

A store in Happy Valley Pennsylvania has a state tax of 6%. There is also a city tax of 4% for sales to residents of Birdsbore, which must be listed separately. If the store sells to anyone else, they need only charge the state tax.

1. In OnSite go to Tools > Setup > Basics > Taxes.
2. In the Taxes area name two taxes State and City.
   
3. Rename the default tax code HAP and set it to charge a state tax of 6% and city tax of 4%.
   
4. Create the new Tax Code REG that charges a state tax of 6%.
   

After these changes, a standard sale to residents of Happy Valley defaults to the HAP Tax Code and applies 10% tax, listing each tax separately. However, when a resident of nearby Pleasantville makes a purchase, the tax code can be switched to REG, which charges only 6%.

Changing taxes

A children's store in Ontario selling clothing, books, and puzzles for children charges 2 taxes: a provincial tax (PST) and a federal tax (GST). Due to a change in the way sales taxes are to be charged, they must change their tax setup to reflect only a new Harmonized Sales Tax (HST). Clothing and books are tax exempt.

1. In OnSite go to Tools > Setup > Basics > Taxes.
2. In the Taxes area create a new tax called HST. Do not modify or delete existing taxes.
3. In the Tax Codes area create a new tax code called HST. Set it to apply a rate of 13% for the HST. Make it the default tax code by dragging it to the top of the list. Do not delete the existing tax codes.
4. Set each Sales Station to have HST as the default tax code.
5. Modify the No Tax Tax Status to exempt HST only.
6. Use Set Product Info to set the tax status of all products with the Classes Clothing and Books to No Tax.

Tax-inclusive pricing

A toy store in Sydney is setting up their database. They use tax-inclusive pricing, and charge one tax called GST.

1. In OnSite go to Tools > Setup > Basics > Taxes.
2. In the Taxes area create a new tax called GST. Do not modify or delete existing taxes.
3. Modify the default tax code to charge the appropriate rate of 10%.
4. Select Show Specialized Tax Features > Tax-Inclusive Pricing > Recommended Calculation.

Combined taxes for Multi-Stores

There is a multi-store retailer with locations in New York City and Albany, NY. Taxes in New York state are a combined rate of city, state, and various taxes.

1. In OnSite, in each store’s database, name one tax Sales.
2. In the New York City location, modify the default tax code to apply a rate of 8.875 for the Sales tax. You have the option of renaming the tax code.
   
3. In the Albany store, modify the default tax code to apply a rate of 8.0 for the Sales tax. You have the option of renaming the tax code.
   

Tax exemption for some items

In New York City, clothing sales under $110 are not subject to sales tax.

Use Set Product Info to set the tax status of all products with the Class Clothing and a selling price of less than $110 to No Tax.