I'm writting a time tracking software, which will enable people to
record time spent on a given task and then generate a sales invoice
based on the billable hours.
I'm aware that there's a different sales %tax rate% for each US state,
but I wonder how this should apperas on a sales invoice
1/ If I'm a Californian based company which issue a sales invoice to a
Massachussets based company, does sales tax should be calculated for
the invoice ? If sales tax should appears which rate should I put on
the sales line (The MA or CA rate?)
2/ Imagine I've got a sales invoice which contains those 3 lines :
(The quantity are hours of work, and the description are services)
Qty Description Unit Price Amount Amount inc Tax
8 Programming 100 800 ???
1 Support Call 100 100 ???
1 Design Spec 100 100 ???
TOTAL 1000 &nb sp; &nb sp;
2.a : Should I add the tax rate on each line to work out the Amount
Inc TAX per sales invoice line or should I only add it to the $1000
2.b : Could you take my example and calculate the tax on this simple
3/ Does any other kind of tax should appears on a sales invoice ?
governmental ? federal ? provincial (for Canada) ??
Well I just hope calculating sales tax for North America (USA &
Canada) is not a too complex process
Thank you in advance for your help