Lon Jones (Helen Woodward Animal Center)
Has anyone had experience working with taxable items in A4S? In CA we have to charge sales tax on tangible goods, so we would lose 8% of all those sales if we can't somehow pass the tax to the client. Has anyone created a viable workaround? thanks
Amanda Byrne (Carolina Tiger Rescue)
That's a great question, so I will be following too- in North Carolina they just changed requirements on required nonprofit sales tax- so we probably need to look into this as well for our February auction...
Lon Jones (Helen Woodward Animal Center)
The front end UI changes would be relatively simple with one check box and a read-only percentage calculation, but the back end would need to calculate percentages and apply tax to taxable items.
This could be accomplished with the ability to indicate (w/ a checked box or something) for each item (individual donated items not auction items) entered, whether it gets taxed. Some items may be combined into a basket or package so the program needs to be able to assign tax to the basket/package based only on the taxable items. A percentage would be calculated for the total item.
For example, if and auction item consisted of 4 $5 (FMV) items, 2 of which are taxable, the calculated percentage would be 50%.
By law, the purchaser is charged tax based on what they pay, regardless of the FMV. So in this example, if he paid $8 for the item, the system would simply multiply the percentage of taxable items (50%) x $8 x the current tax rate. Or $4 x 8% in CA or $.32, to be included in the total for that line item on the invoice. Tax for each item would be summed on the invoice and added to the total.
The tax deduction portion is the amount paid, including tax, over FMV.
We need to be able to edit the tax rate as it can change year to year.
The receipts should show tax separately so the purchaser knows tax was paid on the item. I have included an auction receipt as it would look like if it included a tax line.
I hope this helps and is something that can be implemented fairly readily. Thank you for your help!
Lon Jones (Helen Woodward Animal Center) Has anyone had experience working with taxable items in A4S? In CA we have to charge sales tax on tangible goods, so we would lose 8% of all those sales if we can't somehow pass the tax to the client. Has anyone created a viable workaround? thanks
Amanda Byrne (Carolina Tiger Rescue) That's a great question, so I will be following too- in North Carolina they just changed requirements on required nonprofit sales tax- so we probably need to look into this as well for our February auction...
Lon Jones (Helen Woodward Animal Center) The front end UI changes would be relatively simple with one check box and a read-only percentage calculation, but the back end would need to calculate percentages and apply tax to taxable items.
This could be accomplished with the ability to indicate (w/ a checked box or something) for each item (individual donated items not auction items) entered, whether it gets taxed. Some items may be combined into a basket or package so the program needs to be able to assign tax to the basket/package based only on the taxable items. A percentage would be calculated for the total item.
For example, if and auction item consisted of 4 $5 (FMV) items, 2 of which are taxable, the calculated percentage would be 50%.
By law, the purchaser is charged tax based on what they pay, regardless of the FMV. So in this example, if he paid $8 for the item, the system would simply multiply the percentage of taxable items (50%) x $8 x the current tax rate. Or $4 x 8% in CA or $.32, to be included in the total for that line item on the invoice. Tax for each item would be summed on the invoice and added to the total.
The tax deduction portion is the amount paid, including tax, over FMV.
We need to be able to edit the tax rate as it can change year to year.
The receipts should show tax separately so the purchaser knows tax was paid on the item. I have included an auction receipt as it would look like if it included a tax line.
I hope this helps and is something that can be implemented fairly readily. Thank you for your help!