Use this setup when your sales are tax-exempt by law (e.g., medical supplies, education services). This configuration allows invoices to reflect exemption status properly while keeping your tax reporting accurate.
Step-by-Step Guide:
Navigate to Settings, then go to Accounting & Tax.
Click Create Tax.
In the Tax Name field, enter a suitable name (e.g., Exempted Sales Tax).
Add an Abbreviation (e.g., EXM).
Provide a Description to identify the exemption type.
Enter 0 in the Tax Rate (%) field.
➡️ Once you set the tax rate to “0”, two options will appear:Exempted
Zero Percentage Tax
Select Exempted to apply the correct classification.
Under the account type, select Liabilities for sales tax on Sales.
→ NuMetric will apply this setting to all relevant invoices and assign values to the proper account.Click Create.
✅ Important:
Do not manually create exempted tax accounts in the Chart of Accounts. NuMetric will automatically generate and link the appropriate accounts during this process.
1. Navigate to "Accounting & Tax"
2. Click "Create Tax"
3. Click the "Tax Name" field and Type "Tax Name"
4. Add the "Abbreviation" you need.
5. Add a "Description".
6. Add the "Tax Rate (%)" field (Numbers Only) in this scenario it will "0"
Once you have "0" in the "Tax Rate (%)" field, additional two options will appear. "Exempted" and "Zero Percentage Tax"
7. Select "Exempted"
8. Click here.
9. For Sales Tax on your Sales, select Liabilities.
NuMetric will recognize all sales tax on sales (Invoices) calculated to the created account.
10. Click "Create."
Once you click Create, NuMetric will create the required account under Liabilities in the Chart of Accounts.
⚠️Importnat Note
Do not create sales tax accounts under the "Chart of Accounts." NuMetric, once Tax is created, will establish them.