Overview
This guide outlines how to configure and manage sales tax within the system. By using regional tax settings and revenue types, you can ensure accurate tax calculations for your quotes and invoices.
Tax rate is applied based on the venue location. Venue information can be updated in the Venue Directory.
Once enabled, sales tax will no longer be able to be manually entered on the Quote. Tax rates will need to be configured in Company Inventory or Quote settings in order for sales tax to correctly apply.
Setting Up Sales Tax by Region
Adding Tax Regions
From the Administration menu, click Company Inventory/Quote Settings
Click on the Sales Tax tab
Click “Add Region”
Add tax rate regions based on your business’s operational areas.
Regions can be set at: country, state, city, or zip code.
A country must be selected, but region, city, and zip code are optional.
Specify tax rates for each revenue type (e.g., rental, sales).
Example: In Tennessee, apply a 9.25% tax rate for rentals and sales but exclude labor and shipping.
Effective Dates
Set effective dates for tax rates to account for future changes.
Example: If a new tax rate becomes active in March, create a future effective date so events scheduled after that date use the updated rate.
Hierarchy of Tax Regions
The system applies tax rates based on the most detailed region available:
Zip code > City > State > Country
If a tax rate based on zip code has been added, LASSO will assume that this tax rate should be used before the state-wide tax rate.
Example: If an event is in Nashville, TN (specific zip code), the system will apply the zip code’s tax rate instead of the state’s general rate.
Customizing Revenue Types for Tax Calculation.
Default Revenue Types
Revenue types are predefined for common transactions:
Rental: Applies to rental transactions.
Sales: Applies to product sales.
Labor: Applies to labor services.
Shipping: Applies to shipping costs.
Travel: Applies to travel costs associated with crew.
Other: A catchall for remaining costs.
Additional revenue types can be added by creating custom revenue types.
Miscellaneous Charge Types
For sales tax to properly apply to Additional Charges and Service Fees on Quotes and Invoices, Miscellaneous Charges must be assigned a revenue type. These can be set under Company Inventory/Financial Settings -> Quotes and Invoices -> Miscellaneous Charge Types.
Creating Custom Revenue Types
From the Administration menu, click Company Inventory/Quote Settings
Click on the Financial tab
Create a new revenue type and map it to an existing system category.
Example: “Equipment Repair Fees” could map to the “Sales” category.
Assign revenue types to products or line items for accurate tax calculations.
Applying Sales Tax on Quotes and Invoices
Tax Calculation on Quotes
Assign a venue address to the event.
The system identifies the applicable tax region and rates based on the venue’s address.
It aggregates line items by revenue type and taxability to calculate the total sales tax.
Example:
Venue: Bridgestone Arena, Nashville, TN
Line Items:
Rental Revenue: $1,000 (Taxable at 9.25%)
Labor Revenue: $500 (Non-taxable)
Shipping Revenue: $200 (Non-taxable)
The system calculates sales tax only on the rental revenue, applying the Nashville tax rate.
Adjusting Taxability
Customize taxability for line items:
Use Additional Charges to map line items to specific revenue types if needed.
Key Features and Future Updates
Client-Specific Tax Settings: Upcoming features will allow marking specific clients as taxable or non-taxable.
Detailed Reporting: Access reports that break down taxes by region, event, and revenue type.
By setting up your sales tax properly, you can ensure compliance and accuracy in your billing processes.