Variable taxing of addons

If you are integrated with AvaTax, or Sovos GTD, or Vertex Cloud, variable taxing is handled differently. If your Tax Interface is System Rates, and if your state requires variable taxability on certain addons, you can specify a variable taxability for that addon. Use SA Sales Use Taxes Setup-Addons to assign addons, such as COD or freight, to a state jurisdiction. Each addon description must have been previously set up in SA Order Entry Addon Setup.

Taxability is typically either taxable or non-taxable. However, to accommodate situations where taxability is conditional or variable, especially for addons, you can set up an addon with a variable taxability for a state jurisdiction. The Taxability field enables you to indicate how each addon should be handled when the associated taxing jurisdiction (State) is used.

For example, in California, the taxability of an addon varies based on multiple factors. A delivery addon charge could be taxable if one product on the sales order is taxed, or the addon charge could be not taxable if the products on the sales order are not taxed.

Taxability options

This table shows how variable taxability options work between SA Sales Use Taxes Setup-Addons and the Customer Setup-Taxing-Taxable Status option.


SASGS Taxability option	Customer Setup option	Result
Yes	Taxable	Addon is taxed
No	Taxable	Addon is not taxed
Product	Taxable	The addon is taxed if the product-based tax on the sales order is greater than zero. The Addon is not taxed if an exemption exists in SA Exemption Setup.
Exemption	Taxable	The addon is taxed if no SA Exemption Setup is associated with the order. The addon is not taxed if an exemption exists in SA Exemption Setup.
Yes	Variable	Addon is taxed.
No	Variable	Addon is not taxed.
Product	Variable	The addon is taxed if the product-based tax on the sales order is greater than zero. The addon is not taxed if an exemption exists in SA Exemption Setup.
Yes, No, Product, or Exemption	Not Taxable	Addon is not taxed.

Cautions

The Variable taxability option is limited in the system to United States state level jurisdictions.
Because taxes are only calculated and stored on a sales order from entry through shipping, any change made to the Taxabilityfield between the time the order is invoiced, and the time a return order is entered against the order, is not recognized when taxes are calculated for the return order. The return order is taxed based on the current SA Sales Use Taxes Setup-Addons setting for the jurisdiction.
Infor has no knowledge as to which taxing jurisdictions allow for the variable taxing for addons and will make no effort to determine or maintain taxable status in any jurisdiction. This is the sole responsibility of the user and Infor accepts no responsibility for the incorrect application of this functionality.