To reach the Basics page, start at the Main Invoice Screen and select FILE and BASIC PROGRAM SET UP from the Menu Bar.  Click on the "Sales Tax" tab on top of the page:

The Sales Tax Set-up page will appear.  Parts of this screen include:

Primary sales tax rate (if any)

Type in the amount of sales tax charged in your state.  To indicate the tax, use a decimal.  For instance, to indicate 5% tax, type in ".05".  To enter a 6.5% tax, type in .065.  If there's no sales tax in your state, type in "0".  If, at sometime in the future, your state changes the sales tax rate, you'll be able change the rate.

At what invoice do you want this tax rate to begin?

The tax rate, if there is one, will start with the invoice number that you enter in this blank.  If at a later time, your state or province changes the tax rate, enter the new rate and the invoice number at which this new rate will begin.  The old rate will be applied to all previous invoices, while the new rate will be applied to all new invoices.  One important note:  the invoice number that you enter in this blank MUST exist.  Before entering the new rate, double check which invoice you'll be using for the starting invoice number.

Code to use for your primary tax rate - Level 4 or Greater

If you have only one tax rate, then it is not necessary to type in a code.  If, however, you need to charge different tax rates, then you'll want to give your primary tax rate a code.  Also, you want to use a code if you have to charge two or more taxes on each invoice (required in some Canadian provinces and European countries).  By coding your primary tax rate, you'll be able to generate a sales report which will provide you with the necessary information to file tax reports.  The code can consist of one to three letters or numbers.  For more information, see Set-up Taxes.

Variable Rates (Button) - Level 4 or Greater

This button will display the Tax Set-up dialog box.  Use it if you need to charge different tax rates or if you have to charge two or more taxes on each invoice (required in some Canadian provinces and European countries).  For more information on the dialog that appears, see Set-up Taxes.

Does sales tax include shipping?

Some states, provinces or government agencies require that you calculate sales tax on the total of the goods plus shipping.  If your government agency does not require you to figure tax on shipping, then select NO.  If your government agency requires you to figure tax on shipping, then select YES.

Accounting method required for sales tax reporting

If your state or government agency has no requirements, use the same accounting method as you normally use for your business (see above).  For the great majority of businesses this will be the Accrual system.  In an Accrual Based system of accounting, any invoice whether it has been paid or not is considered a sale.  A Cash Based system, on the other hand, does not consider an invoice a sale until it is actually paid.  An Accrual Based system is easier to use--and is the one required by many tax agencies for calculating sales tax.

Automatically check the Taxable box on all new invoices - Level 4 or Greater

Normally, you add tax to an invoice by placing a checkmark in the 'Taxable?' box on the bottom of the invoice screen.  If all invoices (or almost all invoices) you issue should be taxed, you may wish to automatically have the taxable box checked every time you start a new invoice.  To do so, place a checkmark in this box.

Substitute _____ for the word "Tax" on printed copies of the invoice - Level 4 or Greater

AnyOrder's default is to use the word "Tax" on the printed invoice. However, you may wish to change it to "Value Added Tax (VAT)," "Goods and Services Tax (GST)," or "GST/HST," or some other terminology.  To do so, type in the new name in this blank.  Be sure to place a checkmark in the box.

Two taxes:  Substitute _____for the word "Tax" on the second tax line on the printed invoice - Level 6 +

Level 6 or Higher Feature. If you have two taxes, AnyOrder can be set-up to itemize each of the taxes on the printed invoice. More than one tax is set-up by using the tax codes feature which is accessed by clicking on the 'Variable Tax Rates' button.  When a tax code is assigned, you can indicate how many different taxes are involved and each of the associated tax rates.  By default, AnyOrder will use the label 'TAX' on the printed invoice for the second tax.  However, you may wish to change it to Value Added Tax (VAT), Goods and Services Tax (GST), or GST/HST, etc., or some other terminology.  To change the name for the second tax label, type in the new name in this blank.  Also, be sure to place a checkmark in the box beside this option.  Note:  the taxes can also be named when you indicate the respective rate.  For more information, see Set-up Taxes.

Rounding threshold when calculating tax

The Rounding Threshold allows you to adjust between two primary tax calculation methods:  "bracketing" and "rounding rule" systems.  Bracketing has been around for a long time and is utilized by government agencies because it generates extra tax revenue.

For example, typically you round up to the next whole number when the fraction (or rounding threshold) is .5 or more.  In a bracket system, however, rounding may occur when the fraction is .26 or more.  Or rounding may occur when the fraction is .01.  Since bracketing systems are common, past versions of AnyOrder used a midway threshold of .26.

At first glance, a low rounding threshold doesn't seem to make a big difference.  But if you apply a low rounding threshold to thousands of transactions involving millions of dollars, it turns into a sizeable sum.  That's the reason why the bracketing system has been utilized by government agencies.

Lately, however, a number of states and international government agencies have been moving to the "rounding rule" system whereby tax is rounded at a fraction of .5.  If you know that your tax agency uses "rounding rules," use .5.  If you are under a bracketing system and know the threshold, type it in.  If you're unsure and are a past AnyOrder user, you may wish to stay with .26.  Finally, if you're mystified by all this, use .5.

Set-up other tax rates - Level 4 or Greater

If you need to charge different tax rates depending upon the type of product or where products are sold, then you'll want to set up tax rate codes.  Codes are selected from a pop-up list and the tax rate is automatically entered on the invoice.  When invoices are coded in this manner, you can create reports which tell you how much tax has been collected vis a vis rate.  To set up codes, click on the "Variable Rates" button.  (You can also set up tax codes by selecting INVOICE TOOLS >> TAX RATES >> SET UP VARIABLE TAX RATES.)  More information: Variable Tax Rates

For more information on taxes, see:

Tax Fields on the Main Invoice Screen

Sales Tax Report (Primary Rate)

Changing Tax Rates

Designating Items as Non-taxable

Variable Rates, Tax Codes, & Tax Code Reports