Sales Tax Cap
Alundvall
Member Posts: 1
Two of the cities that we work in have sales tax, but they have a limit on how much they will tax. For example, one has a 3% sales tax per transaction, up to $500. So that means that the most a customer will get charged for tax is $15. When setting up the tax portion of the invoicing, it lets me put in the 3%, but is there a way to cap it? Otherwise it is grossly overtaxing the client.
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Comments
Hi @Alundvall and Welcome to Wave's Community Forum! Thanks for explaining the scenario that you have found yourself in. As the Wave platform is used across the globe, we have created the platform with this in mind. It sounds as though in this case, the situation that you have found yourself in is due to jurisdictional regulations. I'm afraid that Wave doesn't directly support caps on the amount of Sales Tax that can be collected, however, you may find it helpful to consult the Sales Tax report to keep a manual record of how much Sales Tax has been collected before applying it to another invoice moving forward.
I'd be really curious to hear where about your business runs out of that adheres to Sales Tax Caps, and also curious to hear from others in a similar situation. This would help to identify if there is a huge cross-section of Wavers that have noted the same sort of Sales Tax Cap as well.