When you create a sales transaction, Sage Accounting applies tax rates based on the contact’s address or delivery address.

How tax is determined

Sales transactions (invoices, credit notes, quotes, estimates, quick entries) apply tax rates based on the customer’s address.

Expense transactions apply tax rates based on the business address, as you pay taxes on the purchase. Sometimes, vendor location tax rates can apply.

Check the address

1. Select the Contacts menu.
2. Click on your existing Vendor or Customer record line.
3. Select the Contact and Addresses tab.
4. Verify the Province is accurate and select Save.
   

Creating an invoice

• When creating a Vendor Bill, select the correct tax area in the Tax rate field
  
• When creating a Sales Invoice, verify the Province in the Invoice Address