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DealerTeam

Taxable Transaction Types

Taxable Transactions

The method for accruing sales tax varies depending on the complexity of rules for each transaction type. The three primary transaction types in DealerTeam that calculate sales tax are:

  • Deals 
  • Service Repair Orders 
  • Rental Agreements.

Deals

As the most complex transaction in DealerTeam the Deal has the most flexible set of tax features. Deals can get taxed at the rates for the dealership Location or the Buyer. If the Tax Delivery Address field is checked on the Location record the Tax Zone and its corresponding tax rate gets assigned using the Buyer address instead of the Location address. 

Complex tax scenarios such as Vehicles, Parts / Parts Kits, and Misc Charge Codes, can be taxed at special rates based on the Product Tax Code. By assigning a Product Tax Code taxes will calculate for selected items based on the rate determined in the corresponding Misc Tax Code, found on the Location record. Checking Is Chassis on the Misc Tax Code will apply the tax to the Chassis Price, while checking Is Conversion will apply the tax to the Conversion Price.

By unchecking Tax Chassis field on the Vehicle tab of the Deal no taxes will get charged for the Chassis Price and will override the Standard Tax rate set by the Tax Zone. Similarly, by unchecking Tax Conversion the Misc Tax Code on the conversion Parts Kit will get overridden and no tax will get charged on the Chassis Price. Each After Market item on the Equipment tab of the Deal Screen also has a Tax checkbox. If unchecked the particular item will have no tax assessed.

Special taxes can also get manually created on the Purchase tab of the Deal screen. 

 

Service Repair Orders & Parts Invoices

Service Repair Orders and Parts Invoices derive tax rates from fields on the Location for the most part. Similar to the Rental Agreement the combined sales tax rate for the dealership Location is stored in the Tax Local Rate field. Due to the complexity of Service Repair Order transactions they have additional tax configuration options available.  

Tax Labor and Tax Parts, if checked, will apply the Tax Local Rate to labor, parts, and sublet charges. Additionally, the Tax Misc. Charges field controls the taxability of Misc. Charge Codes.

Value Action
All All Misc. Charge Codes will get taxed at the Tax Local Rate
None None of the Misc. Charge Codes will get taxed
Respect Misc. Charge Code Record Will charge the tax rate listed on the Misc. Charge Code record

 

Rental Agreements

Rental Agreements have the simplest tax structure of the three transaction types. There are two fields on the Location record Tax Local Rate and Local Rental Addition. Tax Local Rate is the combined sales tax rate for the dealership Location including state, county, and local. This field is also used in the Service Repair Order so any special rental taxes shouldn't get included in this value. The combined rate of any special rental taxes should get entered in the Tax Local Rental Addition field. In addition, on the Rental Agreement if the Tax Exempt field is checked then no taxes will get assessed.