How Do Mobile Apps Calculate Sales Tax?

Mobile-payment apps like GoPayment can perform many tasks beyond processing credit card transactions: They can email a receipt to the customer. They can display a client’s purchasing history quickly and easily. And they can accurately calculate the proper tax on a sale, no matter where you happen to be in the U.S.

How to Calculate Sales Tax Automatically

GoPayment’s mobile app is configured so that it can calculate sales tax automatically based on the seller’s location. Using your mobile device’s built-in geolocation feature, the app determines where you are and cross-references your location with a database of sales-tax figures. The app then computes the proper amount of tax for every taxable item or service being sold and adds it to the total due.

With GoPayment, it’s easy to set up sales-tax computation: Using your mobile device, go to the GoPayment app’s main screen and select the Settings icon and then the word Tax. Slide the digital switches for both Sales Tax and Location-Based Rate from OFF to ON.

This enables your device to search for and retrieve the appropriate sales-tax rate based on your current location — even if you’re in a special tax district.

How to Enter Sales Tax Manually

GoPayment offers sellers some flexibility when dealing with sales tax. If you want to enter sales tax manually, leave the Location-Based Rate switch in the OFF position and key in the rate you wish to charge.

Because not all goods or services are taxable in a given location, you can record whether or not a certain item or service is taxable in the GoPayment database.

Also, if you ever have to compute sales tax based on a municipality other than the one you are currently in, you can access the sales-tax database manually to figure out the proper tax rate.

If you’re currently using a desk calculator to figure out sales tax for purchases, GoPayment can eliminate that hassle among all of the other benefits it provides.

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