sales tax codes explained
Which code to use on each line, and where it ends up.
Every invoice, bill and credit note line has a sales tax code. The code decides how much sales tax is charged and where the line goes on your sales tax report.
| Code | Name | Use it for |
|---|---|---|
| EXTERNAL_TAX | Sales tax (added separately) | Taxable sales where you add the tax yourself as a line |
| EXEMPT | Exempt | Sales to exempt buyers with a certificate |
| NON_TAXABLE | Non-taxable | Services or goods not taxed in your state |
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