Managing sales taxes

Managing sales taxes

Sales tax collection and reporting can be automated and simplified using the sales tax functionality in Settings and Inventory.  Taxes are based on where services are provided.  In other words, if services are provided at the clinic, then the clinic’s address will be used to determine the appropriate taxes.  If services are provided remotely, then taxes will be calculated based on that location (for more information about working with appointments, please see  working with appointments).  For more information about setting your address, please see  uploading practice logo and setting up practice contact information.


To set your default service location:
  1. Click on "Settings"
  2. Under the “Configuration” tab, scroll down to "Services Location”
  3. Click on the edit icon
  4. Set the applicable value in the field that appears
  5. Click the save icon
                              

Taxes are managed under Settings and are applied to the inventory categories of your choice.  However, individual inventory items can be opted into (or out of) specific taxes.  Clients can also be exempted from taxes by default.  


For clinics that offer mobile services or both in-clinic and on-site services:

You want to make sure that when you are adding in your client's addresses that you are selected the verified address from the menu in Vetter in order for the taxes to calculate properly for the client's location.

                                    

You will also have the option to select the location of the service when checking in the appointments depending on where the services will be performed.

                                     


To add a new tax:
  1. Click on "Settings"
  2. Click on the "Configuration" tab and select “new tax”
  3. Complete the form that appears, including by selecting the type of tax (i.e., city, county, state, or country), the specific tax jurisdiction, and the inventory categories that the tax should be applied to
  4. Click "Save"
                                          

Check with your accountant or local jurisdiction tax assessor  for applicable tax rates and  to determine if you are required to charge sales tax for only specific types of goods and services (eg retail and food, but not exam services and prescriptions/pharmaceuticals).


To opt an inventory item into or out of a specific tax:
  1. Click on "Inventory”
  2. Navigate to the applicable item 
  3. Click “taxes”
  4. Click on the edit icon for the applicable tax
  5. Change the value of the “action" column to "Applicable" or "Not Applicable"
  6. Click the save icon



To exempt a client from taxes:
  1. Navigate to the client's profile.
  2. Click on "Edit Profile"
  3. Navigate to the field "Exempt from" and select "Taxes" from the drop-down list
  4. Click "Save + Done"

Calculating taxes paid by clinic into the cost for items:
You will have the option when adding in your receipts for purchases made for the clinic, to include shipping and taxes paid by the clinic:




There is also an option under the "Settings" module and the "Configurations" tab to include the shipping and taxes paid by the clinic into the cost of items purchased by clients:

To review sales taxes collected:
  1. Click on the “Reports” module.
  2. Click on the “Billing” tab.
  3. Click on “Sales Tax Summary”



    • Related Articles

    • Managing contacts

      The Contacts module is useful for managing contact information for people and businesses who are not clients, but with whom you interact. These typically include suppliers, pharmacies, labs, and referring doctors and clinics.  A "contact" profile ...

    • Managing inventory subcategories

      Organizing your inventory items by category is one of the most important things you can do in order to track stock effectively, apply taxes accurately, and report the use of inventory items.  We use the AAHA Chart of Accounts as a starting point, but ...

    • Managing Staff Accounts and Permissions

      Anyone who has access to your account should have his/her own staff account.  This ensures that each person's activity can be appropriately attributed to that individual and that permissions can be tailored to that individual.  Each staff account ...

    • Exempting clients from taxes, late fees, or billing statements

      To exempt a client from being taxed, being charged late fees, or receiving billing statements: Navigate to the client of interest. Click "Edit Profile" Choose "Exempt from" and select a value from the drop-down list, repeat as needed Click "Save + ...

    • Setting up your account (including logo, address, clinic hours)

      One of the first things you will want to do within Vetter is to set up some basic profile configurations such as adding your logo, your clinic/business address, and setting your clinic hours of operation. Please follow the steps below to update the ...