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dynamiczip:faq:tax_by_item_class_faq

Item Taxability by State

How can I control the taxation of Items, Freight & Misc. on a per state basis?

DynamicZip has a feature called Tax By Item Category which allows you to control the taxation of inventory items as well as freight and miscellaneous charges on a per state basis. The DZ Tax By Item Category Setup window allows you to choose a state, an Item Category and a Tax Option.

Freight Charges

Create the item category FREIGHT using the DZ Item Category Maintenance window.

  1. Assign your freight inventory items to the FREIGHT item category with the DZ Item Supplement window NOTE: If you have several inventory items that need to be assigned to the FREIGHT item category you may prefer using the DZ Modify Item Supplement window rather than the DZ Item Supplement window.
  2. Use the DZ Tax By Item Category Setup window to setup the states where Freight will be Nontaxable.
  3. Now all inventory items assigned to the FREIGHT item category as well as any amounts entered directly into the Freight field at the footer of the Sales Transaction Entry window will be controlled by your settings in the DZ Tax By Item Category Setup window.

The CCH ZIPsales Database includes the Zipsales Database Rules file. The information contained in this file may help you determine in which states you are responsible for collecting tax on freight.

Miscellaneous Charges

Create the item category MISC using the DZ Item Category Maintenance window.

  1. Assign your miscellaneous charge inventory items to the MISC item category with the DZ Item Supplement window NOTE: If you have several inventory items that need to be assigned to the MISC item category you may prefer using the DZ Modify Item Supplement window rather than the DZ Item Supplement window.
  2. Use the DZ Tax By Item Category Setup window to setup the states where the miscellaneous charges will be Nontaxable.
  3. Now all inventory items assigned to the MISC item category as well as any amounts entered directly into the Miscellaneous charges field at the footer of the Sales Transaction Entry window will be controlled by your settings in the DZ Tax By Item Category Setup window.

Other Items, Services and Charges

Create an item category for each class of charges whose taxability varies from state to state. Examples could include categories like:

  • Parts
  • Labor
  • Services
  • Food
  • Liquor

Follow the above steps to create, assign and manage whatever custom categories your business requires.

Item taxability for a substantial number of states can be found at Streamlined sales taxability matrix.

NOTE: Tax by Item Category was called Tax by Item Class in DynamicZip build 71 and earlier.

NOTE: If Assign Tax Schedule is disabled in the DynamicZip Setup window, TBIC will also be disabled.


Frequently Asked Questions

dynamiczip/faq/tax_by_item_class_faq.txt · Last modified: 2017/12/07 21:34 by conni