In this mini-training, Diane Yetter compares two differently formatted invoices for the same transaction to demonstrate the importance of invoice presentation for the taxability of the services you’re providing. Wording your invoice in a certain way can increase your taxability. Watch the video to learn tips and tricks from Diane to avoid common invoice mistakes for services.
After formatting and wording your invoices, you still have to decide whether or not you should be charging sales tax on your services. This is definitely not straightforward if you provide mixed transactions like bundles or packages. To start off on the right foot, check out our free tool: the True Object Test Decision Diagram. This tool will be a quick assessment to help you determine whether or not the services you’re selling are taxable.