Sales Tax differs for each municipality, but in some cities, counties or states, even non-profits must pay sales tax on auction items. For example, your municipality may require taxing items, but not gift certificates; or they may require taxing services but not items. Please check with your board's legal counsel and consult your local tax laws for specifics to ensure compliance with local laws.
OneCause is built to handle tax situations easily for Silent Auction, Live Auction, and Fixed Price packages. Adding tax to your packages is a two-step process that will result in your guests paying you the money for the taxes, which you can then use to pay the government.
Set tax rate. Under Setup > Preferences > Organization, enter the tax percentage applicable in your area. This will be applied to all packages you designate as taxable.
Choose taxable packages. On each package that needs to be taxed, check the "Apply Sales Tax" checkbox.
Once the package has been won/bought, the sales tax will be calculated and added to the guest's bill on top of the winning amount. By default, this checkbox is turned off on all new packages.
You can use our Multi-Edit Packages tool to quickly designate multiple packages as taxable all at once.
FREQUENTLY ASKED QUESTIONS
Can I tax only the Fair Market Value (FMV) of the package?
No, tax rates apply to the full bid amount, whether it is higher or lower than the FMV.
Can I alter the tax rate after the auction closes?
Yes, altering the tax rate under Preferences will cause the system to recalculate tax.
Can I make something taxable or untaxable after the auction closes?
Yes, checking or unchecking the "Apply Sales Tax" checkbox after the auction closes will cause the guest's bill to recalculate accordingly.
How does the tax appear on receipts?
The tax will appear as an additional line item on the receipt. Tax for all packages will be totaled up as one lump sum for that guest.