Massachusetts Sales Tax Exemption Question

bessiebessie Member Posts: 1
edited January 18 in Feedback

Hi! Are there any retailers out there based in MA? We're opening up a pop up shop next month and noticed that the tax is tricky. Does anyone know how to go about this? Form my understanding, clothing and shoes are exempt up to $175, and then tax is charged only on the difference. When talking to customer service, I was told to create a Non-Inventory Item and manually calculate the tax for the items that retailed over $175. We are expecting to be a high volume store, so it just doesn't feel right to have to go through all these extra steps. Help!

Post edited by VD_LS on

9 comments

  • TrolleyMuseumTrolleyMuseum Member Posts: 30 ✭

    Tax on $175 is $10.93. As a work around you could make a discount code for $10.93 that you apply to all sales over $175.00. It would take almost no time to apply the "coupon" and no calculations would be necessary.

  • seldomtypqlseldomtypql Member Posts: 1

    Apparently Lightspeed has almost no way to resolve this which seems ridiculous to me. They also didn't let us know this before signing us as a customer and now we're having to end our contract. It should be a relatively simple programming exception. The most important thing is accurately reporting the taxes to the bank and/or state.

  • gregaricangregarican Member Posts: 953 

    Good luck. We had a Tennessee site we were considering implementing Lightspeed Retail for. This US state has tiered tax --> https://help.avalara.com/Frequently_Asked_Questions/Product_and_Service_Taxability_FAQ/How_is_the_Tennessee_Tiered_Tax_applied%3F#:~:text=Tennessee%20Tiered%20Taxing%20Example%3A,items%20between%20%241%2C600%2D%243%2C200. Unfortunately Lightspeed Retail has no way to natively handle this. And there's no way we'd ask our sales staff to break out calculators and manually punch in all of the particulars. Besides inefficiency, pilot error for the high-priced items we'd sell would be a train wreck.

    I know that properly handling sales taxes based on a variety of locations is ungainly. But it's something that should be a given with any POS platform. Some solution providers just plug into a third party service that specializes in this complex world (e.g. - Avalara). At least that shows best effort to keep things running smoothly...

  • VD_LSVD_LS Administrator, Moderator, Lightspeed Staff Posts: 796 moderator

    Hey guys!


    Thank you so much for your feedback and working in frontline support, we did take note a while back that this was something getting more and more prominent in the way taxes are handled so it was brought to the attention of the Dev team around that time.


    I did confirm this is something we're working on. For legality reasons, we're not made aware of when it will launch until it's entirely ready to go to market but we'll do our best to keep you updated as soon as we know!

    ———

    If you have any further questions Please do not hesitate to contact LightSpeed support or check out our Support Page.


    All the best!

    Vanessa

    Lightspeed Retail Support

    866-932-1801 ext. 2 (Toll-Free)

    514-907-1801 ext. 2 (Montreal)

  • JasonRobertsJasonRoberts Member Posts: 29

    This was one of my biggest problems with Onsite and I'm extremely frustrated that it will continue to be so with Retail. In fact, this was one of the major issues that prompted me to try to get our company to move away from Lightspeed. This is not a minor inconvenience. It's an audit issue!

    The other vendor we were looking at has a solution to this issue that is completely transparent to the user. It simply knows that any single normally-non-taxable item over $175 is taxable for the portion of the price over that $175 and calculates the tax automatically. We'd've had to do nothing other than switch on the option.

    So how do we handle sales that involve these items? Suffice it to say our solution is... problematic.

  • gregaricangregarican Member Posts: 953 

    Looking at this thread again, it was started almost 2 years ago. Proper sales tax calculation, tendering, and reporting should be a standard feature for any POS or E-com solution.

    After all, correcting what's essentially a money issue isn't an enhancement.

  • ethosconceptethosconcept Member Posts: 1

    Hello everyone,

    I see many others have had the same problem with the Massachusetts State tax law on Lightspeed. I still do not see a solution in the POS. Has anyone finally figured this out? Vanessa, I see from Aug 2020 Lightspeed was supposedly working on this. Am I missing something or is there not yet a solution?

    Please help, this is a major nightmare for compliance and accounting.

    Thanks

    Joe

  • VD_LSVD_LS Administrator, Moderator, Lightspeed Staff Posts: 796 moderator

    Hey there!

    Thank you all for your precious feedback.

    One of the main reasons why this is a bit tricky to implement within retail is due to the way that sales interact with taxes.

    By example, since discounts , a price rule, discount rule, other tax setups, etc. can impact the total, it becomes a tad bit more difficult to implement with all required variations.

    Of course, we want to make sure that it also isn't terribly frustrating for you all, as some of you had mentioned. There is an integration you can consult called PunkPOS to help with this.

    I've linked the main website for this integrator for those who are interested.


    Of course, this does not mean that we will be disregarding this feature request and it is still going to be considered as a requested feature enhancement.


    Thank you all for your patience and feedback!

    ———

    If you have any further questions Please do not hesitate to contact LightSpeed support or check out our Support Page.


    All the best!

    Vanessa

    Lightspeed Retail Support

    866-932-1801 ext. 2 (Toll-Free)

    514-907-1801 ext. 2 (Montreal)

  • JamireyesJamireyes Member Posts: 1

    Wondering if there is any update to this issue? We can come up with a work around for our retail but not ecomm.

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