Hi All, I am an accountant for an Irish company that has set up a US company and I'm trying to come to terms with the quagmire of Sales Taxes in the US (and trying to set them up in Quickbooks). We sell Software as a Service so in some states I believe it is not taxable but in other states it is. Other services such as Web Design, etc I am told are exempt also.
My questions are the following :
1. I have figured out how to set up taxable supplies and the sub taxes into a group but what is the situation if it is an exempt supply ? Do I have to get just set it up as zero rated ?
2. If I am setting up a customer who is in a state that shows the supply to be exempt - do I need to get an Exemption Certificate or anything from the Tax Department? even though I wouldn't have any taxable supply to customers in that state ?
3. What about Customers outside of the US ? Do I set them up as an Out of State supply (or is there different terminology generally used in the US)
I am concerned that if I don't set them up correctly to begin with, I will end up finding out that I can run particular reports later to get particular info that might be needed!
Is there anything else I should be away of? Or that I need to research ?
thanks a million
MarionOB