Add a tax line to inventory items
I would love to see each inventory item with a field for the sales tax item. I have items for sale which have a sales tax rate, but also would like to be able to assign a tax such as "Tax on Service" to my labor rates. I think I have seen multiple tax rates, but this appears to be on an invoice level, not an item level. The item level is simply taxable or not - it does not allow for the selection of different rates.
For now we’re only supporting a single tax rate per invoice in the US. We may revisit in the future.
Brian Twitchell commented
Yeah, the tax rates are different. Actually, in my case the labor tax is zero, but there have been rumors in recent years of creating a tax on labor, so I have always had my items set up with an assigned tax of 0%. Plus, I found it easier to fill out my sales tax report, as I have to report both taxable and non-taxable income.
Also - I know some localities DO have different rates for labor and parts, so I wanted to make it a more generic suggestion, instead of specific to my situation of no tax.
Henry H commented
What about making your labor a taxable inventory item? Then the tax rate applied to the entire invoice should apply to it as well, right? Or is the labor tax at a different rate than the item tax?