Taxes - TaxCloud: Automatic Sales Tax Payments (Overview)

You can activate TaxCloud to calculate and remit your sales tax to your state by activating it under Settings -> Payment Preferences. It can be used to handle exemption certificates, sales tax reporting, and payment to your state, county, and city automatically. For states that require a lot of paperwork to file sales tax, this can be a huge time saver. Using TaxCloud will override all of the tax settings you've set in the system (taxable price categories, distance, staffing, etc.) and will determine whether those items are taxable or not automatically. You will want to set the Tax Category for your inventory, particularly for the types of items that you known are not taxable for your state. For example, many states food related items are not taxed. Simply go to Settings -> Inventory, and edit each item to set its Tax Category.

Exemption Certificates

Once it's activated, the first thing you may notice is that the tax exempt checkbox will be replaced with an Exempt? link. You or your customers must complete the form that pops up in order to receive tax exemption status.

If you ever get audited by your state, you will be required to provide certain information, such as the customers EIN or vendor number for all exempt claims. Having our system and TaxCloud store these for you will be a huge benefit to you.

Exemption certificates stay attached to the customer, so once they've created one, they will not need to do so again for future events. Certificates can also be removed from a customer if needed by using the exempt link or by creating a new profile for that customer.

Exemption certificate form


When a payment is made on a lead, InflatableOffice will send that payment to TaxCloud for processing within one hour. A tax rate will be calculated based on the time of the payment, so it is possible that if the tax rate has changed since the event was created that the payment will be charged at a different tax rate. However, this is very unlikely.

Monthly Review

TaxCloud requires that you review/approve all the previous month's transactions between the 1st and 10th of the month. 

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