Expense sales tax codes consist of 0-9. The code indicates which sales tax rate you want used as a default for calculating sales tax on expenses for this client. This default can be overridden when entering expense transactions if desired.

0 - nontaxable Indicates no sales tax will be assessed on expenses.
1 thru 9 Specifies which sales tax rate assigned in Customization will be used. The corresponding sales tax percentage is displayed next to each code. A rate of 0.000% indicates no percentage has been assigned in Customization for that sales tax rate code.

Note: The Tax Expenses check box on the Rates tab of Customization must be selected along with a percentage greater than zero in the selected sales tax rate code in order for sales tax to be assessed on expenses. This option will not be available unless the Tax Expenses check box in Customization is selected.

See also:   Sales Tax Overview