How do I handle sales tax?

Cameron

I'm confused about how I should handle Sales Tax in Wave. What's the process?

Cameron

• Navigate to the Setting section in Wave.
• Click Create a sales tax
• Enter the tax name (This is going to be the location or vendor charging sales tax)
• Enter an underscored abbreviation (Ex. ebay_tax, nyc_sales_tax, etc.)
• Add a brief description
• Enter tax number (not exactly sure what this is)
• Leave This tax is recoverable checked which means you can deduct the amount of sales tax you had to pay at the same rate from the tax you had to remit. This leaves a net sales tax amount that you need to pay (recoverable taxes) (It's non-recoverable when you have to remit the full amount of sales tax charged)
• Skip this is a compound tax (not sure what it means)
• Include the Tax rate % for the tax you need to charge on top of related sales

EXAMPLE

Now when you have a sale, you can add sales tax on it.

In the Sales Tax report, you'll be able to see the sales taxes you have collected in Net Tax Owing.