Summary
In ServiceBox, sales tax pertains to the tax applied to taxable line items on invoices. The platform allows users to create individual sales taxes and tax levels. Sales taxes represent individual tax rates, while tax levels are combinations of these rates. Tax levels define different combinations of taxes (or no sales tax) that can be charged on individual items in a quote or invoice. Setting a tax level as 'Default' ensures it appears as the default tax when adding items in quote or invoice settings.
Quote items can have specific taxes assigned, and leaving the tax blank designates the item as non-taxable. Customer and jobsite overrides enable the setting of a default tax for items added to a quote or invoice, regardless of the item's settings. The override tax at the jobsite and customer levels takes precedence, but exceptions apply when an item is set up without a tax in settings.
Override taxes are applied first at the jobsite level and then at the customer level. To handle non-taxable items with an override tax, users can create a 'No Tax' tax level without sales taxes.
Rounding taxes and accounting considerations are managed in the Tax levels tab in settings, where users can find a checkbox for additional customization.
Sales tax
in ServiceBox refers to the tax that is applied to taxable line items on invoices. In ServiceBox, you can create individual sales taxes and tax levels. Sales taxes are the individual tax rates, while tax levels are combinations of rates.
Tax Levels
Tax levels are used to set up the different combinations of taxes (or no sales tax at all, more on this later) that can be charged on individual items on a quote or invoice. These tax levels are what is used in a quote or invoice.
Setting a tax level to be 'Default' means that when adding items in settings under Quote->Quote Items or Invoice->Invoice Items, this will be the tax that will appear by default. Also on a Quote or Invoice, if you are allowing items to be added into the back end settings directly from a quote or invoice, this will be the tax that will be set on the item by default.
Quote Item creation
When you add a quote item you can choose to set the tax that should be applied to that item. You can also choose to leave it blank. Leaving the tax blank has special meaning in that item will be considered non taxable.
Customer and Jobsite Overrides
When editing a customer or jobsite, you are able to set an override default tax. What this does is sets the default tax for an item added into a quote or invoice to this tax, regardless of what is set in settings for that item.
There is one exception, if the item is set up in settings without a tax set (so the tax level was set to blank), then this item will not have any tax applied regardless of the override tax on a customer or jobsite. If you want to specify that an item is normally not taxable but should take the override tax of a jobsite, then create a 'No Tax' tax level and do not include any sales taxes. This will allow for the override tax to be applied.
Override taxes are applied at the Job Site level first then at the Customer level.
Rounding Taxes and Accounting
At the bottom of the Tax levels tab in settings, there is a checkbox:
This allows for the differences between the different accounting packages on how to apply sales taxes. If checked, then sales tax is applied to each line then added up to a total tax. If unchecked, then the amount to be taxed is totaled and the tax rate applied to that total. For example, if you have PST at 5% and three lines with totals of $20, $30, $40, then if the checkbox is checked, then the 5% is applied to each line ($1, $1.50, $2) and totaled to be $4.50. If the checkbox is unchecked, then the total is made of all three lines ($90) and the tax applied to be $4.50. In the example, there isn't a difference in the total tax, however depending on the amounts of each line, the result could be different by several pennies.