When I create quotes and invoices, we normally add a credit card processing fee of 3% on the total amount after taxes. This fee should not be taxed, but I can't find a way to label that line item as tax exempt on the invoice.
Another example would be if we are charging parking fee's to the customer. These are not taxable line items but there doesn't seem to be a way around this.
@msantourdjian Instead of trying to dictate the tax information manually inside HubSpot, below is a different approach.
The integration we built in the HubSpot marketplace, Sales Tax Powered by AvaTax, connects HubSpot to Avalara’s AvaTax engine so Avalara handles tax calculation for you. Here’s how it works:
Map products:HubSpot product codes are mapped to Avalara tax codes so AvaTax knows what you’re selling.
Map customers:Exempt customers in HubSpot are mapped to Avalara so AvaTax knows who qualifies. Since not all exemptions always apply the same way everywhere, Avalara tracks the nuances for you.
Automated calculation:When a Quote is generated in HubSpot, AvaTax applies the right rules in real time based on current tax regulations, not an outdated rate table.
This means AvaTax automatically assesses both the product and the buyer in real time, keeps you more accurate, and reduces risk. It’s also more scalable, if someone on your team leaves, tax compliance doesn't leave with them.
So if in your case, those processing fees likely shouldn't be taxed, AvaTax will check the jurisdiction you're selling into to make sure, and then return the right amount based on current regulations, whether it's $0 or something else.
You must be a registered user to add a comment. If you've already registered, sign in. Otherwise, register and sign in.
