I can’t figure out how to exclude certain items from being taxed in a sales order. I have create my sales taxes and charges template that applies both provincial and federal taxes to my sales order. Some items are not actually sold but rather they are provided against a consignment (display refrigerators). I have made an item tax template of 0% for those specific items. Now , no matter what I do , the sales taxes and charges are always applied on these items, even if the item tax template is set to 0%. The sales taxes and charges is set to default and both tax lines are set to “On net total” so since my consignment value is part of the total , it gets taxed. I don’t understand how to properly exclude single items from being taxed. Am i supposed to make a new custom field for items to hold the consignment , but I’ll still want that amount to appear in the item list of a sales order / invoice. Will it need to be in a different column than the normal rate ? And then create new lines for totals , grand totals? I’m sure there’s a simpler way to have items excluded from taxes.
You should be able to assign tax rules via item groups. Unfortunately, this is broken.
Ideally you’d set a tax rule based on your taxable item group, then items not in the group don’t get taxed. Unfortunately assigning a tax rule to an item group, ignores the item group and applies taxes on net total regardless of the group the Item is a member of.
@mangroliya I don’t think this is practical for some jurisdictions. In the US each state has unique tax rates. In a single state like NY, there are 83 tax jurisdictions. For NY alone this would translate to 83 tax lines in each item.
Adding to the impracticality, Item tax does not allow for a rate, which means when price changes we would have to update our item taxes for each item, yes?
Perhaps I’m missing a critical description that’s not documented.
I was wrong about tax rate in Item Tax, but this solution is impractical for the USA (especially if the company is required to collect sales tax in all 50 states).
Fixing the tax rule bug would be more appropriate. When creating a tax rule based on an Item Group, only items in the group should get tax applied. This is a bug, or the field should be removed from the docType.
