Items and invoices don't allow for customer tax status

[sbsroc]

Items have a sell and purchase tax rate assigned.
Line items in invoices have a tax rate that defaults to the item's sell tax rate.
However, I need a solution that allows for a company with 501(c)3 tax-exempt status (about half of my customers) to be flagged as tax exempt so that they are not charged tax, even on taxable items.

My current system flags an item with a boolean "taxable" status, not a rate. The customer is added with a default tax rate and that tax is added to all items that are flagged as taxable. This works for ME, but it will not work for everyone.

I'm not Canadian, and I barely understand their tax system, but they have 2 taxes, I believe.

In the USA, each state has its own tax rates, and if I sell to a customer in another state, I need to collect sales tax for that state and at the rate that they dictate, AND track it for payment to that authority, individually.
In New York, USA, the state has their tax level, and each county has their own tax as well. The state sales tax is 4% and some counties are 4%, some 3.5%, some higher. Clothing is not subject to the state sales tax, but is subject to the county tax:
(https://www.tax.ny.gov/pubs_and_bulls/tg_bulletins/st/clothing_and_footwear.htm)

I didn't thoroughly think it through, but I think the only solution is to have a list of tax rates and a checkbox for which taxes each item is subject to, and a checkbox for each tax that a customer can be charged. When they have a match on an invoice, then it can be charged. Additionally, each tax rate should have it's own configured tax authority (vendor) that the tax is payable to.

HOWEVER, I think this needs more brainstorming to be sure it's revised only once and it works for everyone worldwide.

[linear]

BIG-251 Items and invoices don't allow for customer tax status

[telmich]

Hello,

as discussed on discourse, a typical thing to do for a business that is dealing with EU states and tax rates is:

• If you bill to your own country, B2C: apply specific vat rate (*)
• If you bill to your own country, B2B, with VAT number: apply 0% vat rate (*)
• If you bill to an EU country, B2C: apply country specific vat rate (*)
• If you bill to an EU country, B2B, with VAT number: apply 0% vat rate (*)
• If you bill to non-EU controuy, B2C, B2B: apply 0% vat rate

(*) rate may be a standard rate or service dependent rate, but being able to apply a standard rate would already help.

Hope that input helps.