Tax-exempt status
The tax-exempt option indicates whether an item, a tool, or a service is taxable. You might want to set the tax-exempt status, depending on where an item or a service is acquired, and how an item or a service is used.
The situations under which items or services are tax-exempt vary depending upon your location, and upon current tax regulations. For example, the storeroom for an item might be in a location where sales taxes are not collected. In some cases, if an item becomes part of a product, that item can be tax-exempt. If the item is used as a stand-alone item, then the item is taxable. The buyer for your organization determines the tax-exempt status of items, of tools, and of services.
- Purchase Requisitions
- Purchase Orders
- Invoices
When you specify the tax-exempt status, you can apply the status at the organization level and at the vendor level.