Tax on labor - but only sometimes.....

[rhillig]

We recently went thru a lovely State of MN sales & use tax audit. We were informed that if we put hitches, plows, accessories on a vehicle - we need to charge sales tax on the labor.

I know I am probably missing a setting right in front of my face, but is there a way to just charge sales tax on labor sometimes?

Thank you

[nickscarcare]

I know if you double click on the labor, you can change the tax setting, the bottom left when the box is up says tax, click that then it pops up and says your tax rates, and under that is taxable labor, go over and click that box, it will work that way just for that line item.

[rhillig]

ahhhhhhhhhhhhhhhh - I don't have a taxable labor setting - that is the step I'm missing! Thank you!

[nickscarcare]

Your welcome, I know we have to use it too for towing.

[timbre4]

ahhhhhhhhhhhhhhhh - I don't have a taxable labor setting - that is the step I'm missing! Thank you!

If you don't have a taxable labor option to assign at all, here are the steps: 1) Add the Income Type then 2) Assign it accordingly.

labor 1.png (39.99 KiB) Viewed 8530 times

labor 2.png (29.57 KiB) Viewed 8530 times

[rhillig]

Thanks for the answers! I knew it was right in front of my face...I was looking too hard & didn't see the taxable labor column in the tax screen