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.
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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.
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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?