Key Details:
When a record is marked as not tax liable, the rental management software effectively ignores all associated tax codes – regardless of what equipment is being rented – making it the ultimate gatekeeper for your financial compliance.
- System Category: This setting is managed within the Customer – Financial tab and is a core component of the Tax Code – Summary logic.
- Customer-Level Control: Setting a client to “No” for tax liability (common for non-profits or government agencies) ensures that every order generated for them defaults to a tax-free status.
- Administrative Overrides: While the default is set at the customer level, authorized users can adjust the liability status for individual orders to accommodate specific tax-free projects or varying regional requirements.
- Compliance Documentation: To maintain an audit trail, the system typically requires an Exemption Certificate Number to be entered whenever a customer is designated as not tax liable.
Use Case Example
If a local school district rents several generators for a high school event, the administrator would navigate to the district’s profile and toggle the Tax Liable setting to “Off.” By doing so, the system automatically bypasses the standard 8% sales tax on the invoice.
Think of it as the “VIP pass” for your billing department – it tells the system exactly who gets to skip the tax line and who doesn’t!
