Gross Sales and Taxable Measure in Reporting Files
Overview
Gross Sales is any debit or credit transaction amount sent to AvaTax for Communications (AFC), plus any tax or fees that the tax is applied to. Credit transaction amounts are added to Gross Sales. If a tax is exempted, the transaction amount is still added to Gross Sales.
Taxable Measure = Gross Sales - Exempt - Adjustments
Tax Amount = Tax Rate * (Taxable Measure - Adjustments)
These formulas hold true for all reporting files produce by AFC, except for the EZComPrep utility.
A customer is charged $100.00 on Intrastate/Toll and then later credited $50.00 on Intrastate/Toll using an Adjustment API. The Custom Sort utility is run to produce the .ssf reporting file below. Local (tax level 3) sales tax (tax type 1) is an example of the calculations used for taxable measure and tax amount. You can also see the implications of tax or fees added to the tax base for local sales tax can create larger tax base than the transaction amounts sent to AFC.
| Field | Value |
|---|---|
| Taxable Measure | 107.235324 |
| Gross Sales | 160.852986 |
| Exempt | 0.000000 |
| Adjustments | 53.617662 |
| Tax Amount | 0.536177 |
| Tax Rate | 0.010000 |
Taxable Measure: 107.235324 = 160.852986 - 0.000000 - 53.617662
Tax Amount: 0.536177 = 0.010000 * (Taxable Measure)
.SSF Format
Country, State, County, Locality, Tax type, Tax level, Tax rate, Tax amount, Gross sales, Exempt, Adjustments, Taxable measure, Minutes
Comma-delimited .SSF file
USA, , , , 6, 0, 0.030000, 1.614853, 161.485290, 0.000000, 53.828430, 107.656860, 0.0
USA, TX, , , 9, 1, 0.001667, 0.089232, 160.585290, 0.000000, 53.528430, 107.056860, 0.0
USA, TX, , , 10, 1, 0.006000, 0.300000, 150.000000, 0.000000, 50.000000, 100.000000, 0.0
USA, TX, , , 13, 1, 0.056500, 2.867076, 152.234113, 0.000000, 50.744704, 101.489409, 0.0
USA, TX, , , 26, 1, 0.012500, 0.661354, 158.725050, 0.000000, 52.908350, 105.816700, 0.0
USA, TX, DALLAS, DALLAS, 1, 1, 0.062500, 3.351104, 160.852986, 0.000000, 53.617662, 107.235324, 0.0
USA, TX, DALLAS, DALLAS, 1, 3, 0.010000, 0.536177, 160.852986, 0.000000, 53.617662, 107.235324, 0.0
USA, TX, DALLAS, DALLAS, 33, 3, 0.010000, 0.500000, 150.000000, 0.000000, 50.000000, 100.000000, 0.0
EZComPrep Utility
The EZComPrep utility calculates Gross Sales and Taxable Measure differently than all other AFC reporting and sorting utilities. Credit transactions are not added to Gross Sales.
Let's use an example of a customer being charged $100.00 on Intrastate/Toll and then later credited $50.00 on Intrastate/Toll using an Adjustment API. The EZComPrep utility is run to produce the reporting file below. Local (tax level 3) sales tax (tax type 1) is an example of the calculations used for taxable measure and tax amount. Gross Sales is the $100.00 charge plus any taxes or fees that local sales tax taxes.
The same calculations are used to determine Taxable Measure and Tax Amount:
| Field | Value |
|---|---|
| Taxable Measure | 53.617662 |
| Gross Sales | 107.235324 |
| Exempt | 0.000000 |
| Adjustments | 53.617662 |
| Tax Amount | 0.536177 |
| Tax Rate | 0.010000 |
Taxable Measure: 53.617662 = 107.235324 - 0.000000 - 53.617662
Tax Amount: 0.536177 = 0.010000 * (Taxable Measure)
Comma-delimited LOG.RPT file from EZComPrep
USA, , , , 6, 0, 0.030000, 1.614853, 107.656860, 0.000000, 53.828430, 53.828430, 0.0
USA, TX, , , 9, 1, 0.001667, 0.089232, 107.056860, 0.000000, 53.528430, 53.528430, 0.0
USA, TX, , , 10, 1, 0.006000, 0.300000, 100.000000, 0.000000, 50.000000, 50.000000, 0.0
USA, TX, , , 13, 1, 0.056500, 2.867076, 101.489409, 0.000000, 50.744704, 50.744704, 0.0
USA, TX, , , 26, 1, 0.012500, 0.661354, 105.816700, 0.000000, 52.908350, 52.908350, 0.0
USA, TX, DALLAS, DALLAS, 1, 1, 0.062500, 3.351104, 107.235324, 0.000000, 53.617662, 53.617662, 0.0
USA, TX, DALLAS, DALLAS, 1, 3, 0.010000, 0.536177, 107.235324, 0.000000, 53.617662, 53.617662, 0.0
USA, TX, DALLAS, DALLAS, 33, 3, 0.010000, 0.500000, 100.000000, 0.000000, 50.000000, 50.000000, 0.0