Yeah, it is a really difficult issue. Here in California you have the same sorts of distinctions. In our industry (construction) there are also distinctions with how the item is sold: if it's included in a lumpsum contract (we will install this widget for this price) there is no sales tax but the company is liable for use tax (completely different). However, if you walk into a showroom and buy the same widget to install yourself there is sales tax. Oh, except some types of items are charged sales tax regardless of how they are sold (eg. fixtures: anything that is not permanently attached to the structure) and in the case of a contract the tax is calculated on, and payable to, the locale where the JOB is located - not where your company or the widget is located. And each locale can have different rates, special assessments, etc. Oh, but items sold and installed under a time & material basis (we sell you the widget and charge $x/hr to do the install) are always charged sales tax. There's also the difference in sales tax generally being a liability (because it's technically collected and held on behalf of the taxing authority) and use tax being a business expense (because it's levied on the company as a cost of doing business) but that's usually relevant further up the accounting ladder.
OTOH - we've been audited by the tax board a few times over the years and not once did they care about how accurately, or not, taxes were being reported for each locality. They cared about the big numbers, not the small ones. I was frankly surprised but 'auditor' is not my job and I'm cynical enough as it is. After working out a system to accommodate California I really cringe at the thought of trying to manage it nationally. Even in our case the tax has to be calculated on an item by item basis because of the various factors that come into play. Factors like the date - sales tax is due when the sale takes place. Rates can change during the course of a given job and they can change between the time a bid is offered and accepted. If one has an invoice interface that allows the date to change, or items to be moved from one invoice to another, this creates issues. "Why can't I just change the date on an invoice? What's so hard about that?" Because. I suspect what's going to happen is some element of standardization. Similar to how the finance industry has 'streamlined' or 'channeled' the vast number of transactions into consistent data structures for basically the same reasons - the majority of agents in a transaction simply want to get paid. To facilitate this some standards or 'best practices' will emerge. If these are predominantly written by business it will be less good for municipalities, I suspect, but easier for folks like us. On Fri, Aug 17, 2018 at 7:12 AM Chip Scheide via 4D_Tech < 4d_tech@lists.4d.com> wrote: > Just wondering... > > I know that there are a **stupid** number of sales tax zones, and > exceptions in each zone > i.e in Pa - where I live - clothing, (most) groceries, and necessities > are sales tax exempt; however (and there is always at least one) some > clothing (sports specific are NOT exempt), Pepsi and prepared foods > (rotisserie chicken) are not exempt... etc etc etc. > > and yeah it would be a an F-ing nightmare to try to manage these -- so > yes let someone else do it -- BUT - > do these things really change that much day to day, or month to month > - or even year to year? > in PA the only changes (that I am aware of) > - 2 'special' areas of an additional 1% sales tax (Allegheny County, > and Phillidelphia county) and both of these have been in place for > decades. > - 'Cyber Monday' - when ever that is, in which electronics are tax > exempt, and this has been in place for at least a decade if not 2 > > > On Fri, 17 Aug 2018 07:25:58 -0400, Jeffrey Kain via 4D_Tech wrote: > > Not compared to filing sales tax in every tax jurisdiction in every > > state (eventually) every month ourselves... > > > >> On Aug 17, 2018, at 1:00 AM, Kirk Brooks via 4D_Tech > >> <4d_tech@lists.4d.com> wrote: > >> > >> So kinda pricey? > > ********************************************************************** > > 4D Internet Users Group (4D iNUG) > > Archive: http://lists.4d.com/archives.html > > Options: https://lists.4d.com/mailman/options/4d_tech > > Unsub: mailto:4d_tech-unsubscr...@lists.4d.com > > ********************************************************************** > --------------- > Gas is for washing parts > Alcohol is for drinkin' > Nitromethane is for racing > ********************************************************************** > 4D Internet Users Group (4D iNUG) > Archive: http://lists.4d.com/archives.html > Options: https://lists.4d.com/mailman/options/4d_tech > Unsub: mailto:4d_tech-unsubscr...@lists.4d.com > ********************************************************************** -- Kirk Brooks San Francisco, CA ======================= *We go vote - they go home* ********************************************************************** 4D Internet Users Group (4D iNUG) Archive: http://lists.4d.com/archives.html Options: https://lists.4d.com/mailman/options/4d_tech Unsub: mailto:4d_tech-unsubscr...@lists.4d.com **********************************************************************
