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How do I setup my invoice to use my tax exemption and keep track of how much I owe my state?

I maintain/clean boats and some times I install zincs which are very cheap by themselves but I charge a higher retail price for them and include an installation fee.

How do I setup my invoice so my clients pay me for the state tax on the zincs but not on the installation? I don't want the bill to be too high.

Also I'm not sure I want my clients to know where the zinc price ends and the installation fee begins... wink! wink! Some of those zinc are so small they're not worth doing.   

I'm starting to think the tax exemption is not worth the trouble and I should just pay it at my zinc supplier. I did the math and it's only about 2.5%, about $2 or less, taken out of my profit.

What do you guys think?
Best answer 03-26-2019 12:19 PM

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Established Community Backer ***

Re: How do I setup my invoice to use my tax exemption and keep track of how much I owe my state?

Hello,

 

Currently there is no way to make only PART of a line item taxable or non-taxable.  So if you have the part and installation all summed up as 1 line item, its all tax or no tax.  You'd have to set them up as 2 separate line items and make 1 taxable and the other not.

3 Comments
Established Community Backer ***

Re: How do I setup my invoice to use my tax exemption and keep track of how much I owe my state?

Hello,

 

Currently there is no way to make only PART of a line item taxable or non-taxable.  So if you have the part and installation all summed up as 1 line item, its all tax or no tax.  You'd have to set them up as 2 separate line items and make 1 taxable and the other not.

Frequent Explorer *

Re: How do I setup my invoice to use my tax exemption and keep track of how much I owe my state?

Is tax exemption really important if it's such a small part of my business or am I missing something? If you have some experience with this I'd like to hear your thoughts about it. 

Established Community Backer ***

Re: How do I setup my invoice to use my tax exemption and keep track of how much I owe my state?

That would be a question you want to ask your accountant.