Massachusetts has a luxury tax that applies to items over $175. BridalLive cannot automatically calculate the tax for these items. The workaround is to setup your system by enabling manual tax calculation. You can do this by going to Settings > Point of Sale > Preferences > set Enable Manual Tax Calculation to Yes.
- Under Settings > Point of Sale > Tax Codes, add the tax rate for items below $175. This tax code should be assigned only to items below $175. Since BridalLive cannot calculate the tax for items > $175, the No Tax code will be assigned those items and will have to calculated manually (more on this later).
- Add a Department called "Tax", under Inventory -> Add Department
- Add an Item called "Luxury Tax" to the "Tax" department. Set the tax code on this item to "No Tax". Set the retail price to 0.00.
Ringing up a Sale
When a customer orders a product that is > $175, add the item to the order as usual. Then add the Luxury Tax Item to the order as well. Manually calculate the tax amount due and then adjust the price of the Luxury Tax Item.
Any items below $175 will have their tax computed automatically, however, the items > $175 must have their tax amount added as a line item on the order.
End of Month Sales Tax Reporting
When the end of the month arrives and you need to determine how much sales tax you need to remit to the government you will do the following:
- Run the Sales Tax Report for the month - This will only show the total tax for items < $175.
- Run a Sales By Department - Select Comp. Start Date and Comp. End Dates as your filter criteria. Locate the total for the Tax department. This is the total amount of tax that was manually entered on orders that are now due to the government.