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Configuring Sales Tax

Configuring Sales Tax

Every time you sell something, your system needs to know how much sales tax to charge. This page walks you through setting up your state sales tax so it is automatically applied to every sale.

How Sales Tax Works in CloudFFL

When you add a product to a sales order or POS transaction, CloudFFL looks at the default sales tax to calculate the tax amount. For example, if your state rate is 6.25% and you sell a rifle for $500, the system automatically calculates $31.25 in tax.

You set this up once and it applies everywhere — sales orders, invoices, and the point of sale.

Step 1: Open the Tax Settings

    Go to Invoicing (or Accounting) from the app grid. Click Configuration → Taxes. You will see a list of existing taxes. A fresh install may have a generic "15% Tax" — this is a placeholder and needs to be replaced with your actual rate.

    Step 2: Create Your State Sales Tax

      Click New to create a new tax. Fill in the fields:
      FieldWhat to Enter Tax NameYour state name + rate, e.g., "TX Sales Tax 6.25%" or "FL Sales Tax 6%" Tax TypeSelect Sales Tax ComputationSelect Percentage of Price AmountYour state's sales tax rate (e.g., 6.25 for Texas, 6 for Florida, 7 for Indiana)
        Click Save.

        Tip: Not sure what your state's sales tax rate is? Search "[your state] sales tax rate" online, or check your state's Department of Revenue website. If your county or city adds additional tax on top of the state rate, add the combined total here (e.g., if your state is 6% and your county adds 1%, enter 7%).

        Step 3: Create a Purchase Tax (Same Rate)

        You also need a tax entry for purchases (when you buy from vendors). Repeat the steps above, but:

          Click New again. Set the Tax Name to something like "TX Purchase Tax 6.25%". Set Tax Type to Purchases. Set the same Amount as your sales tax. Click Save.

          Step 4: Set Your Default Taxes

          Now tell CloudFFL to use these taxes automatically on every new sale and purchase:

            Go to Settings (the gear icon on the home screen). Scroll down to the Invoicing section. Find Default Taxes. Set Sales Tax to the sales tax you just created. Set Purchase Tax to the purchase tax you just created. Click Save.

            Step 5: Remove the Placeholder Tax (Optional)

            If there is a generic "15% Tax" left over from the initial setup, you can deactivate it so it does not accidentally get used:

              Go to Invoicing → Configuration → Taxes. Open the "15% Tax" entry. Click Action → Archive (or toggle it to inactive).

              Important: Tax rules can be complicated, especially if your state has exemptions for certain items. If you are unsure about your rate or whether firearms and ammunition are taxed differently in your state, check with your accountant. You can always adjust these settings later.

              What About Tax-Exempt Customers?

              Some customers may be tax-exempt — for example, law enforcement agencies buying duty firearms, or other FFL dealers purchasing for resale. CloudFFL handles this with Fiscal Positions, which automatically remove tax for specific customers. Setting up fiscal positions is optional for now. If you have tax-exempt customers, you can handle it on a per-invoice basis by manually removing the tax line, or ask your CloudFFL support contact to help set up fiscal positions later.

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