AG Taxation Feature

The AG Taxation Feature allows the taxation of items to automatically apply the desired non-tax status to selected agricultural items.

Company Setup - AG Taxation Feature Unchecked

When the Ag Tax Option is turned off, items are indicated as Taxable within the General tab of the item Ag Tax Items (Agricultural) which are non-taxable for Taxable customers with a non-blank Tax ID.

Customer	Taxable Customer	Non-Taxed Customer	Taxable Customer with Tax ID
Item	Taxable Item	Taxable Item	Taxable Item
Results	Tax applied to Item	Tax NOT applied to Item	Tax IS applied to Item
Comment			If the item is determined to be a non-taxable item based upon the Ag taxation rules and the customer's use of the item, the user selects Modify Tax (F5) to change to AG Tax (non-taxed).

Taxed Item with selected Taxed Category of TAX

Non-Taxed Item with selected Tax-exempt Food

Company Setup - AG Taxation Feature Checked

When the Ag Tax Option is turned on, items are identified as Ag Tax Items (Agricultural) which are non-taxable for Taxable customers with a non-blank Tax ID.

Customer	Taxable Customer	Non-Taxed Customer	Taxable Customer with Tax ID
Item	Taxable Item	Taxable Item	Taxable Item
Results	Tax applied to Item	Tax NOT applied to Item	Tax IS NOT applied to Item automatically
			If the item is determined to be a Taxable item based upon the AG taxation rules and the customer's use of the item, the user selects Modify Tax (F5) to change to Taxable Item.

AG Taxed item with optional Non-Taxed

Choose the AG Tax option
from the available listing

Select the AG Tax option to reveal the Tax and Non-Taxed option within the taxation structure.

Selectable Taxable Drop Down

Choose the appropriate Taxable tax from the available listing. The Taxable listing typically only contains a single entry, TAX. This listing of taxable items is supported within System > Company Setup > Sales Tax Menu > Taxable Item Types.

Selectable Non-Tax Drop Down

Choose the appropriate Non-Taxable from the available listing. The Non-Taxable listing will contain multiple non-tax items. In the case of the AG tax option, select the AG Tax item. The Sales Tax report will reflect the sales which have been automatically set to AG tax within the Sales and Use tax report within the AG summary and detail report.

The listing of non-taxable items is supported within System > Company Setup > Sales Tax Menu > Non-tax Types.

Sales and Use Tax Reporting

The TransActPOS > Reports > AR or IC, Sales Tax Report provides detailed reporting to reflect the Ag taxation instances.