Understanding Tax Types

Tax Type:  No Tax

This option is used for items that no tax is collected or reported.

Note:  Tax Type 1 & 2 are no different from each other however, Tab Wizard allows the option to better track tax included vs tax not included.  Tax Type 1 can be used (for example) as Tax Included Items and Tax Type 2 can be used (for example) for Tax Not Included items.  Most users select and mix both tax types into one categorie as Tax Type 1 combined.

Tax Type:  Tax Type 1

Tax Type:  Tax Type 2

This option is required if tax is required to be reported.

This option is optional and can be used to report Tax Included vs Tax Not Included

Understanding Tax Included / Tax Not Included

Tax Included: Yes

Tax Included: No

Tax is added but is reversed from the total price and reported as sales tax

Tax is added on top of the total price and reported as sales tax above