Auction Flex can accommodate tax rates based on geographical usage of an item according to the buyer. This feature is necessary if you tax titled vehicles according to city or county of use rather than the onsite tax rate for an auction.
Setting up buyer based tax structure;
| 1. | Enable Tax 2 in Settings and Options under the Taxes tab. Go to the Tax Table and enter the appropriate taxes based on buyer origin. An example would be typing Marion County in the description and 6.25% in the Tax Rate. |
| 2. | Go to your Inventory Drop down menu to Inventory Type and create a new inventory type to be used for your tax on area items. When creating this new inventory type be sure the following settings are checked. It should be tax exempt on Tax one, but Buyer determined on Tax 2. Your other inventory types will remain Buyer Determined on Tax 1 and Tax Exempt on Tax Two. |
Using your new buyer based tax structures in an auction;
Create your new Auction from Auction Maintenance. Then go to the Information Tab to your Settings tab.
1. Set your Buyers Premium
2. Set Tax 1 to Auction Determined and to your default tax rate.
| 3. | Set Tax 2 to Buyer Determined. This will allow Tax 2 to follow the tax rates you have set in your table as described in step one of setting up your buyer based tax structures. |
| 4. | Enter your inventory with the appropriate inventory types selected. If for example you are selling vehicles as your buyer based taxable item, be sure that all vehicles in your auction that need to follow this behavior are properly entered. |
| 5. | Enter your Buyers. On the Info 2 tab you will see the tax setting. Tax 1 will follow the tax rate of your auction. Choose whether the buyer is taxable or not for your standard items. Tax 2 deals with your Buyer based tax structure. If they are taxable on Tax 2 leave this box checked and select the appropriate tax rate from the drop down menu at the far right. |
Now that you have the taxes set for your buyers, all of your Vehicle taxes will fall to Tax two and the appropriate tax rate for your buyer, while Tax One will apply to your standard items. You will see on your invoice the taxes applied and their rates.
The standard after auction reports (Invoice Receipt and Invoice Summary) will break your taxes down by the amount you received for each rate as well as a combined total.