Customer is Tax Exempt on SOME items only

[tedxas]

In Texas, restaurants are exempt from paying sales tax on non-reusable items such as paper napkins, plastic eating utensils, soda straws, and french fry bags.
 
But restaurants DO pay sales tax on equipment and services used to operate the facility such as tables, chairs, trays, glasses, dishes, serving utensils, reusable menus and placemats, silverware, tablecloths, and cloth napkins.
 
So, if I have a restauranteur that purchases plastic eating utensils (non taxable) and tablecloths (taxable) on the same order, what is the recommended method for applying tax accurately? Would I use a combination of Groups to accomplish this?  

 

Related, how would I mark a certain product as tax-free for one-or-more Groups?

 

Thank you!
 
SOURCE: http://comptroller.texas.gov/taxinfo/taxpubs/tx94_117.html

Edited May 18, 2016 by tedxas (see edit history)

[Teapot Creative]

Hi

 

You can set up a TAX  say call it "Tax Exempt 0%", then assign this Tax to your state/country. Then assign this tax option to your non taxed items/products in the "Prices" section of the product details.

 

So if a cart has taxed and non-taxed items in the cart, only the taxed items will have the extra charges applied to them. 

 

I would not use Groups as this is a site wide setting, where as you need to apply the tax free option on a product by product basis. 

 

Hope this helps...

 

NickC

[tedxas]

Thank you! That's a great use-case example.

 

In my case, however, the tax exemption would be applied based upon certain Customer - Product combinations.  Said differently, I might have two Customers from the same state where one Customer pays tax on Widget A while another is exempt from paying taxes on Widget A. In other words, Widget A isn't always tax exempt -- just for specific customers.

Edited May 23, 2016 by tedxas (see edit history)

[Teapot Creative]

Hi

 

OK, that is a different scenario...  Unfortunately TAX's are all based around client location so I don't think you can determine this using the TAX's setting, as it's based on the delivery/Invoice settings.

 

I think what you are trying to do will not be possible, sorry..... also I am not sure that this scenario would abide by TAX laws (obviously don't quote me on that ). 

 

NickC

Edited May 23, 2016 by Teapot Creative (see edit history)

[tedxas]

Yes, we have some crazy tax scenarios here in Texas. If you're into light reading, take a look at:  http://comptroller.texas.gov/taxinfo/taxpubs/tx94_117.html

 

 

Thanks, again, for your counsel. Best regards from across the pond!