Taxes FAQs

This topic contains some common questions that you may have regarding Taxes.

  1. If I can't figure out why a tax was charged, who should I contact?

    We have a support contact with CCHTax, use support@cchtax.com to send an issue to them. Before doing this, please use the resources listed to try and determine what is going on.

  2. What is location code?

    Location Code is a non-system-used bit of data that CCHTax provides to help us in filing. It is different across markets and is not used in tax calculation. It is mainly used by the client to group similar tax rates together for filing. In some markets, it is a numeric value such as 123 that indicates the IRS tax code for a particular county. In other markets, it is a description such as "MTA tax" to separate out which tax type is being charged.

  3. How do reversals work? When I do a 'Tax Adjustment' special charge or an AR Adjustment of Type 'Tax' does this reflect correctly in the CCH Tax* reports?

    No. Those reports are based off on the InvoiceTax and InvoiceTaxDetail tables, which are only used by invoice generation (including credit/debit memos). Most clients when filing total up their Adjustments and special charges to figure out how much tax to owe. (This is a gap in our product - we should be able to reverse an invoice and it reverses the corresponding taxes correctly).

  4. How does GRT/PUC/Tax On Tax work?

    Some taxes are "TaxOnTax". This just means that the tax needs to be charged on what is a good/service, and then another tax needs to be charged on that total. The way we have implemented this (per CCHTax recommendation) is that we return a list of taxes that are of this type and do a second pass at the total. Both GRT and PUC are TaxOnTax, and they are commonly billed in markets we support. This is due to the fact that these are taxes issues on the Supplier that may or may not be issued to the consumer. Since they are to the Supplier they are regular revenue and thus applicable for sales tax.