tax sales tax vendor tax taxes default taxes guide video piggy piggy back piggy backed purchase credit exmt state tax Setting up your Taxes

This video will guide you through the process of setting up your taxes in LMN. This will ensure your estimates recover the cost of taxes paid on vendor purchases (if applicable) and the taxes you must charge your customers on invoices (if applicable).

 

In this video you will learn:

  • How to setup / add taxes to LMN
  • How to enter tax rates in LMN
  • How to set your default tax settings for labor, equipment, materials in your catalog
  • How to update your tax settings for your entire catalog

Setting up your Taxes

Even if you don't charge your customers sales tax, you will still need to setup sales taxes.  If you pay tax to vendors when you buy materials etc., you will need to make sure the costs of the taxes are built into your estimating.  Follow the instructions below to setup taxes in LMN.

    1. Click the Item Catalog | Taxes menu on the left.

       

      taxes.png

    2. Click the +New to add a new tax.taxes2.png
    3. Add in the following information and click OK
      • Tax Name - A short abbreviation for your tax name.
      • Description (optional) - A description of the tax rate you are adding.
      • Active - Select this box so the tax to be used on estimates.
      • Rates
        • Name - Add a name for the rate (can be the same as the tax name).
        • Rate - The tax rate (e.g. 7.5%).
        • Purchase Credit - Select this box if you are rebated the tax when you make purchases (used in Canada and other countries that use a Value-Added Tax system).
        • Piggybacked - Select this box ONLY if you're entering 2 tax rates and the 2nd rate is charged on top of the 1st rate (used only in very rare tax scenarios).

Note: every LMN user will need at least one tax called EXMT.  This EXMT tax should be a tax with a 0% rate, used anytime you do not charge tax (to your customers) or do not pay tax (to your vendors).

See the screenshots below for an example of an EXMT tax, and an example of how to enter a STATE tax.

Tax-Exmt.jpg

 

Tax-State.jpg

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