Sales Taxes: Exempt Tax vs. ???
Frequently, when filling out our monthly ( or quarterly ) tax forms to send our sales tax payments to the state, we run across the issue where they want more detail on our “Exempt” taxes. ( If your lucky enough to do business in a state that doesn’t care – congratulations! ) But many states want the detail of Exempt – how much exempt was Wholesale, how much was Out of State, or Farming, etc.
Lizzy will report these intelligently, if you tell her you need them. How do you do this? In the Sales Tax setup of course! If we go there ( Settings > General > Tax Rates ), you’ll notice in the upper section ( 3rd Column ) that there is ‘This is an exempt tax’ flag. This flag allows us to create multiple ‘Exempt’ statuses within Lizzy, for just such a thing as reporting Wholesale vs. Farming vs. Out of State vs. whatever.
Then, when you use one of these taxes on an invoice – Lizzy will be able to distinguish it from just Exempt, which is exactly what you need when filling out your Tax Report.