Massachusetts Tax Holiday Instructions

How To Change The Sales Tax For The MA Sales Tax Holiday

DO THIS BEFORE RINGING THE REGISTERS IN

 

Please check with your State Sales Tax Department to verify which items are included in the tax holiday

Please read the entire document before making any changes to your system.  It is a good idea to test these changes before the day of the tax holiday.

 

SETUP IF ALL PRODUCTS ARE TAX EXEMPT

 Below is an example of a Sales Tax Code screen.  You will find this screen in the backroom program under Administration/File Maintenance/Sales Tax Code.  Please notice the code “MA0005” with .05000 in the rate column; there is a similar entry for the sales tax at your store.  Print a copy of this screen and put it somewhere for safekeeping.

At the beginning of the day

Make sure polling is off and the registers are not rung in.

 

You will need to change the tax rate to .000000 in the rate column for the code that starts with “MA” (see picture below).  Click on the code field for the line that starts with MA, tab to the field called Rate.  Change the rate to .00000 and then hit the enter key.  Click on exit.  Start the polling program.  Watch the change poll down to the registers.  Ring in a register and test the change using a miscellaneous taxable item before opening your store for the day.

At the end of the tax holiday

Again, start by turning polling off and ringing out the registers.

 

Bring up the Sales Tax Code Screen and enter the correct rate.  If the rate is 5%, type .05000 in the rate field and hit enter to move off the field.  Again, exit the screen and turn polling on and watch the change go down.  Test each register using a miscellaneous taxable item before opening your store the day after the tax holiday.

 

 

SETUP IF NOT ALL PRODUCTS ARE TAX EXEMPT

 

Leave the Sales Tax Code screen unchanged from its original setup.  Open the Backroom program, click on Inventory and select Sales Categories (see screen shot below).

 

Click on Print to make a copy of the file before making any changes.  It will help you when you have to change the tax codes back at the end of the day.

 

At the beginning of the day

 

Make sure polling is off and the registers are not rung in.

 

Please notice the Tax column on the screen shot above.  This field controls the tax status of your sales categories.  There should be a 0, 1, or 2.  The 0 denotes non-taxable categories, 1 is for taxable categories and 2 is for places that also have additional state or local taxes.  You are only interested in the items that have 1s for right now.  You will need to change the 1 to a 0 for categories that benefit from the tax holiday.  Make sure you move off the field you changed and exit the screen using the Exit button on the bottom right.  Turn polling on so you can view the change going down to the registers and then ring the registers in.  Remember to run a test sale to make sure the changes have taken effect.

 

At the end of the tax holiday

 

Again, start by turning polling off and ringing out the registers.

 

You will need to reverse the changes you made earlier.  This is when the printout you made earlier of the Sales Categories comes in handy.  Make the necessary changes to the Tax column, move off that field and exit the screen.  Turn polling on so you can view the change going down to the registers and then ring the registers in.  Remember to run a test sale to make sure the changes have taken effect.

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