The Tax Free Holiday (TFH) feature allows you to set up an item or group of items for a store or group of stores that are eligible to be sold as nontaxable for a given period of time in POS. The item(s) can be set up with a specific tax code and a maximum selling price during the tax free period.
You can have up to nine categories of items that are eligible for the TFH. Each category is assigned to a specific User Code position and corresponding User Code value. The item(s) that have this User Code value in the specified position in Inventory Maintenance are considered a member of the given category.
You also have the flexibility to enable or disable any category for a specific store. For example, some stores may only have five of the nine categories enabled for a given TFH, while other stores can have all or none of the categories enabled. For each enabled category for a given store, you can establish a maximum selling unit price as well as a specific tax code. Each store participating in the TFH can activate and deactivate the TFH, as well as establish a unique End Date for it.
Typically you would set up the TFH ahead of time, setting the Enabled field to N until you are ready to activate the TFH.. Note: On saved transactions (Suspended transactions, Orders, Special Orders, Estimates, and Layaways), an item's eligibility for tax-free status is determined at the time the item is posted to the transaction, not when it is invoiced; therefore, the Tax Free Holiday must be in effect at the time the item is posted to the saved transaction.
Using Returns Validation is required in order to use the Tax Free Holiday feature (option 8305 must be set to Yes in Options Configuration). This ensures that any returns that occur after the tax free holiday is over get returned at the correct, original tax code and rate.
