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How to Create/Modify a Tax Profile in PA
How to Create/Modify a Tax Profile in PA

How to Create/Modify a Tax Profile in Pennsylvania

Miles Dinsmore avatar
Written by Miles Dinsmore
Updated over a year ago

Create a tax profile to charge clients the proper taxes at checkout.

➥ Tax profiles explained

A tax profile contains applicability criteria, which determines the types of clients and facilities the tax profile applies to, and taxation rules, which determine the tax rates to include and how they are to be combined.

After creating all your tax profiles, you can set the order of tax profile precedence.

Prerequisite

Before you can create a tax profile, you need to have tax rates set up.

NOTE: The Office of Medical Marijuana cannot provide, and this guide is not intended to provide, guidance on which items are taxable or non-taxable. This guide provides instructions on how to set up PA State Sales Tax in MJ Freeway.

Creating or Modifying a Tax Profile

  1. Open the App Drawer and click Facility Settings.

  2. Click Tax Profiles.
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  3. Create or modify a tax profile:

    1. To create a tax profile, click Create Tax Profile.

    2. To modify an existing tax profile:

      1. Click the tab corresponding to the status of the tax profile (active or inactive).

      2. Select the tax profile from the list and click Edit Tax Profile.

  4. Enter a unique name for the tax profile, along with the applicable facilities and customers.
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  5. Specify which tax rates are included in the tax profile and how they should be applied:

    1. In the Taxes Applied To Sub Total (and compounding) section, select the tax rates that compound upon each other. Skip this step if this tax profile does not include any compounding taxes.

      1. The table starts with Tax Group 1. The tax rates selected in this group are calculated from the subtotal.

      2. Click Add Group to add another tax group. Tax rates placed in tax groups higher than 1 are calculated from the subtotal plus taxes from lower groups.

      3. Refer to the sample dollar amounts in the chart to check whether you've grouped the tax rates correctly.

    2. In the Taxes Applied To Sub Total And Grouped Taxes section, select the tax rates that are calculated from the subtotal plus the taxes in the Taxes Applied To Sub Total (and compounding) section. Skip this step if this tax profile does not include any compounding taxes.

    3. In the Taxes Applied To Sub Total Only section at the bottom of the page, select the tax rates that are calculated from the subtotal. The tax rates selected here do not compound.

      1. Check the Grand Total displayed in the sample column to check whether you've grouped all the applicable tax rates correctly.

  6. Click Save And Exit to save the tax profile and return to the Tax Profiles page.

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