Tax Exempted Invoices
plockerman
Member Posts: 4
Is there a methodology for invoices that are sent to tax-exempt entities (churches etc.)?
How do I wave tax on those invoices?
What do you do?
4
Comments
Hi @plockerman, the answer to this depends on where your business is located and the requirements of the tax authority there. For example, in Ontario, where Wave is located, registered charities pay sales tax up front, and then apply for reimbursement for a portion of that tax from the government.
The situation may be very different where you are, and depending on the law it's possible the easiest way to do this is to just not apply sales tax to the items on the invoice. However, to ensure your business stays compliant, I'd recommend double checking with your accountant or the tax authority in your location
So, following up on this comment here. Would be great to be able to mark certain customers as exempt for taxes. Generally the items I bill for are taxable, but there is a number of clients I work with that are tax exempt, and I'd love to not have to worry about unclicked the tax on every line of an estimate. Even better would be for Wave to allow me to upload the tax exemption certificate sent to me by that client, which I need to keep handy for auditing purposes.
Hey there @D_Money
I appreciate this feature idea in our community. Typically the product team looks at what the common business owner's needs are and prioritize their list accordingly. The more folks that generate some noise in this thread the better! Thanks again.
Agree, would be a good feature. However -- I still need to have the tax applied, but I also immediately add another tax line to reverse it, so that I can keep track of total sales that were exempt in a specific ledger.
we work with a lot of churches and non-profits that are all tax exempt and to be able to set up a customer as tax exempt would be extremely helpful vs having to remember to remove tax from each invoice.
I'm in the same boat. Not only that, I also sell products through other people's stores, so the sales tax has already been charged by the time I collect the funds.
Looking for an update on this as well. Always embarrassing when they call you up to remind you that the invoice you had sent them has a tax they don't pay over and over again.
Hey @Miguel_G
Sorry to bring bad news but still no update on this request. Thanks for rehashing it in the community though.
I would also appreciate such a feature as we are also dealing with tax-exempt organizations
Seems like it would be a pretty standard setting when setting up a new account. Having to remember who is taxable and who is not seems clumsy.
I am also needing to be able to mark certain customers as exempt for taxes. And it would be awesome for Wave to allow me to upload the tax exemption certificate sent to me by that client. Please add this feature, thank you!
In the US, charities are exempt from INCOME TAX - not sales tax!!!
However, sales tax is typically based on where the client is located and therefore obviously needs to be adjustable...
I'm going to have to bookmark this.
I'm bookmarking this as well. We have a small retail store and have several customers who are tax exempt. We also have to file a state sales tax return which includes totals for resale, purchase exemptions (churches) and out of state sales. It would be easier if we could set up tax codes and run a report showing the totals for each code.
I would love to have this feature, as many of my businesses are tax exempt. Gov't entities, schools, etc. Please keep us posted. Thanks
I would be needing this too, we are a small business who sells a lot that direct ships out of province and PST isn't payable so having to not fix every invoice would be great. We import all our invoices from another platform and already can't have the sales tax import with them so its already a hassle.
I would also really like this feature. I especially like the idea of being able to upload the tax-exempt letter to the client's profile for reference. I design websites and a few of my clients are Non-profits. The taxes are already confusing as I live in a state with GRT, but sell out-of-state. Thanks!
I sell to 501(c)(3) non-profit organizations & also to regular customers. In the US, non-profit organizations are exempt from sales tax. But currently there is no way to exempt a client from sales tax in Wave. Definitely needed. Currently it's not possible to correctly bill these clients in Wave.
This is effectively a necessary feature at this point. I work with multiple Indigenous peoples and I should be able to mark them as tax exempt.