How Sales Tax Should be calculated in the US & Canada ?

[The Night Blogger]

I'm writting a time tracking software, which will enable people to
record time spent on a given task and then generate a sales invoice
based on the billable hours.

I'm aware that there's a different sales %tax rate% for each US state,
but I wonder how this should apperas on a sales invoice

My questions

1/ If I'm a Californian based company which issue a sales invoice to a
Massachussets based company, does sales tax should be calculated for
the invoice ? If sales tax should appears which rate should I put on
the sales line (The MA or CA rate?)

2/ Imagine I've got a sales invoice which contains those 3 lines :

(The quantity are hours of work, and the description are services)

____________________________________________________________ __

Qty Description Unit Price Amount Amount inc Tax

8 Programming 100 800 ???
1 Support Call 100 100 ???
1 Design Spec 100 100 ???
____________________________________________________________
TOTAL
1000

2.a : Should I add the tax rate on each line to work out the Amount
Inc TAX per sales invoice line or should I only add it to the $1000
TOTAL ?

2.b : Could you take my example and calculate the tax on this simple
invoice ?

3/ Does any other kind of tax should appears on a sales invoice ?
governmental ? federal ? provincial (for Canada) ??



Well I just hope calculating sales tax for North America (USA &
Canada) is not a too complex process

Thank you in advance for your help

[Stuart Nottingham]

You'd have to do it at the line item basis. Different "services" may or
may not be taxable in some locales. In your example, for instance,
Design Spec and Programming may be taxable since they're creating a
"product" for the client; your Support Call would be pure service and
may not be taxable. Each state has different rules to determine what is
and what isn't.

Stuart Nottingham

Post by The Night Blogger
I'm writting a time tracking software, which will enable people to
record time spent on a given task and then generate a sales invoice
based on the billable hours.
I'm aware that there's a different sales %tax rate% for each US state,
but I wonder how this should apperas on a sales invoice
My questions
1/ If I'm a Californian based company which issue a sales invoice to a
Massachussets based company, does sales tax should be calculated for
the invoice ? If sales tax should appears which rate should I put on
the sales line (The MA or CA rate?)
(The quantity are hours of work, and the description are services)
____________________________________________________________ __
Qty Description Unit Price Amount Amount inc Tax
8 Programming 100 800 ???
1 Support Call 100 100 ???
1 Design Spec 100 100 ???
____________________________________________________________
TOTAL
1000
2.a : Should I add the tax rate on each line to work out the Amount
Inc TAX per sales invoice line or should I only add it to the $1000
TOTAL ?
2.b : Could you take my example and calculate the tax on this simple
invoice ?
3/ Does any other kind of tax should appears on a sales invoice ?
governmental ? federal ? provincial (for Canada) ??
Well I just hope calculating sales tax for North America (USA &
Canada) is not a too complex process
Thank you in advance for your help

[p***@yahoo.co.uk]

plz tell me in detail about direct tax nd indirect tax