Tax Rates and Tax Codes Management

Configuring how taxes are applied to your auctions is going to be one of the most important things you do for your auctions. In Wavebid we do this by first creating a set of Tax Rates that are then combined into a Tax Code that can then be applied to an entire auction, an specific invoice, a line item within an invoice, or even to a lot itself during the cataloging process. This way you obtain more flexibility on how to handle whatever taxation your jurisdiction demands.

To get started go to My Links > Company > Accounting Settings > Tax Codes.

Tax Codes

Tax Rates

The first step is to create the individual Tax Rates that will make up your Tax Codes:

  1. Enter a Name for your tax rate. Our recommendation is you name them according to the year and quarter/month they are effective in your jurisdiction instead of just after what they are, like 2018 State Sales Tax, or 2018 Q2 Property Tax Levy.
  2. Enter the Rate as a percentage.
  3. Enter Notes, if any.
  4. Click Save.
Tax Rate

This will save your individual tax rate to our database

Tax Codes

The next step is to create the actual tax code that combines the individual rates and applies them:

  1. Click on Create New
  2. Enter the Code. This is the actual value that is referenced in the database. As with the tax rates we recommend you name them according to the year and quarter/month they are effective in just jurisdiction.
  3. Enter the Name for the tax code. This is the human-readable text that will appear whenever a tax code is being chosen.
  4. Enter Notes, if any.
  5. Select the Rates that will compose the code. To select multiple tax rates, hold the Control key (Command in MacOS) while you click on the rates.
  6. Click Save.
Tax Code

A tax code will add together all the rates, then apply that tax percentage to the amount being taxed.

Once a Tax Code is applied to any entity (auction, invoice, invoice line item, lot) and any transaction is processed, the Tax Code becomes locked and you will not be able to change its code, name, or rate or to delete them in their entirety. It will in turn lock any tax rates that compose it. This is the reason why we recommend all of your tax rates and tax codes have a date in the name.

Once you have created your Tax Codes you can set them for an auction, set different tax codes per individual lots, or apply an override on an invoice.

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