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How to calculate taxable and nontaxable sales in Heartland Retail
How to calculate taxable and nontaxable sales in Heartland Retail
Bill C. avatar
Written by Bill C.
Updated over a week ago

Currently Heartland Retail holds sales tax at the ticket level, as opposed to the item level. Therefore, if you need to calculate your taxable or nontaxable sales for the period, there are some simple formulas that can help you do that:

First, start with your period net sales. Let's say in the period that your Net Sales = $5,000. And let's say that your Sales Tax Collected was $200 for the same period. Let's say your sales tax rate in this location is 6.25%.

To get your taxable sales, you actually need to start by calculating your non-taxable sales. In order to derive your non-taxable sales, you would do the following:

Net Sales - (Tax Collected / Tax Rate) = Non-Taxable Sales

Or, to use the real example:

$5,000 - ($200/6.25%) = $1,800 non-taxable sales

To determine your taxable sales, simply subtract your non-taxable sales from the total:

$5,000 - $1,800 = $3,200 in taxable sales.

Here is a related article on how to report on your sales tax collected using Heartland Retail reporting.

As you can see from that article, you can run a report in Heartland Retail of sales tax collected (and net sales), by sales ticket to provide support for your sales tax calculations, including taxable and nontaxable sales; (see (1) Report on net sales and sales tax collected, by ticket in the above referenced article). You can export that 'by ticket report' and then, in excel, calculate taxable and non taxable sales down to the ticket level. You can then look at each ticket to ensure that your team is appropriately using the Heartland Retail tax features to collect sales tax from customers. Remember, because Heartland Retail holds data at a point in time, you can go back in time and report on taxable and nontaxable sales and sales tax collected for any period of time using the reports and calculations mentioned above! 

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