📝 Overview
As we all know, taxes are a very important part of owning a business. It is vital that your taxes are set up correctly so the system will automatically apply the correct tax(s). This article will also dive into the ways to manage taxes for your business location.
💡 Use the Sales Tax Summary report to see the sales tax data for the business. The report is found under the Billing section of the report module.
🎥 Video Overview
🗺️ How to Set Services Location
Taxes are based on where services are provided. In other words, if services are provided at the clinic, then the clinic’s address will be used to determine the appropriate taxes. If services are provided remotely, then taxes will be calculated based on that location. Therefore, it is crucial that you have the accurate address for your clinic put in place.
💡 Click the button below to learn more about entering your address.
Click the arrow to learn about services location
Click the arrow to learn about services location
Setting your default service location
Click on Settings
Click the Configuration tab and select View Confirgurations
Scroll down to Services Location
Click on the edit icon
Set the applicable value in the field that appears
Click Save
Taxes are managed under Settings and are applied to the inventory categories of your choice. However, individual inventory items can be opted into (or out of) specific taxes. Clients can also be exempted from taxes by default.
Mobile Clinics & Clinics That offer On-Site & Mobile
You want to make sure that when you are adding in your client's addresses that you are selected the verified address from the menu in DaySmart Vet in order for the taxes to calculate properly for the client's location.
You will also have the option to select the location of the service when checking in the appointments depending on where the services will be performed.
% How to Add a New Tax
You will need to configure what taxes need to be applied from within your settings. This allows you to include or exclude specific inventory categories.
💡If your business operates in a jurisdiction where only certain inventory items are taxable, be sure to designate the appropriate categories as taxable. You can use the default subcategories or create custom ones. Click the button below to learn about inventory categories.
Click the arrow to learn how to add a new tax
Click the arrow to learn how to add a new tax
Click on Settings
Click on the Configuration tab and select View Taxes
Click the + button on the top right, including by selecting the type of tax (i.e., city, county, state, or country), the specific tax jurisdiction, and the inventory categories that the tax should be applied to
In the Applies To: field, you will need to select the categories that are taxable. If needed, you can leave the default All inventory categories selected until you get your inventory categories set
Click Save
🚫 Tax Exemptions: Clients or Specific Inventory Item
Client's can be exempt from taxes as needed. Additionally, specific inventory items can be exempt. This is helpful if a single item falls into a inventory category that is taxable, but an item(s) need to be exempt.
Click on the arrow to learn about tax exemptions
Click on the arrow to learn about tax exemptions
Exempting a Client from Taxes
Navigate to the client's profile
Click on Edit Profile
Navigate to the field Exempt from and select Taxes from the drop-down list
Click Save on the top left
Exempting an Inventory Item
Navigate to the applicable inventory item
Click on the Taxes tab
Click the edit button to the right of the tax and select if the tax is Applicable or Not Applicable to the item
📦 How to Add in Taxes on an Order
If the business has paid taxes on an order that was placed and received, follow the steps below to learn how to record the taxes paid.
Click the arrow to learn how to record taxes paid on an order
Click the arrow to learn how to record taxes paid on an order
When receiving an order through a New Receipt, you can add in the taxes the business paid on that order.
There is also an option under Settings > View Configurations > Cost Plus Pricing. This configuration determines whether tax and shipping costs are included when calculating an inventory item's price using cost plus pricing.
❓Frequently Asked Questions (FAQs)
Find answers to common questions or additional details that may not be covered in the main instructions.
Click the arrow to view frequently asked questions
Click the arrow to view frequently asked questions
What determines how taxes are calculated for my business?
Click the arrow to see the answer
Click the arrow to see the answer
Taxes are calculated based on where services are provided. If services are performed at your clinic, the clinic’s address is used to determine the correct tax rate. If services are performed remotely or at a client’s location, taxes are calculated based on that service location. Ensuring your clinic address and client addresses are accurate and verified is essential for proper tax calculation.
Where can I view a summary of the taxes collected?
Click the arrow to see the answer
Click the arrow to see the answer
You can view tax data by running the Sales Tax Summary report. This report is located under the Billing section within the Reports module and provides an overview of the sales tax collected for your business.
How do I set or update my default service location?
Click the arrow to see the answer
Click the arrow to see the answer
To set your default service location, navigate to Settings, select the Configuration tab, and choose View Configurations. Scroll to Services Location, click the edit icon, enter the appropriate location information, and save your changes. This ensures taxes are calculated correctly based on where services are performed.
How do I add a new tax to my system?
Click the arrow to view the answer
Click the arrow to view the answer
To add a new tax, go to Settings, select the Configuration tab, and choose View Taxes. Click the plus button to create a new tax. From there, select the tax type (such as city, county, state, or country), choose the correct tax jurisdiction, and determine which inventory categories the tax should apply to. Save your changes once complete.
Can clients or specific inventory items be exempt from taxes?
Click the arrow to see the answer
Click the arrow to see the answer
Yes, clients can be marked as tax-exempt directly within their profile by editing the Exempt From field and selecting Taxes. Additionally, individual inventory items can be set as Applicable or Not Applicable for specific taxes within the item’s Taxes tab, even if their category is generally taxable.
How do I record taxes paid on inventory orders?
Click the arrow to see the answer
Click the arrow to see the answer
When receiving inventory through a New Receipt, you can enter the taxes your business paid on that order. There is also a Cost Plus Pricing setting under View Configurations that determines whether tax and shipping costs are included when calculating an item’s price using cost plus pricing.