How to Configure Tax-Free Holidays in Bravo

Tax-free holidays can be a great opportunity for your customers to save, and configuring these events in Bravo ensures you're prepared to apply the correct tax rates during the holiday period. Follow the steps below to set up and manage tax-free holidays in your store.

You can check out the entire article or simply click on these links to go straight to specific sections!

• Updated your existing Tax Rate Tables
• Create an Alternate Tax Rule for exempt sales
• Applying the Alternate Tax Table for exempt sales
• How-to Video

Step 1: Update Tax Nexus Settings

1. Head to 'System Configuration' 

2. Click on the Company and head to the 'Taxes' Tab
3. Click on the 'Tax Nexus' you want to update and click 'Edit'
4. Click 'Add Effective Date' to add an updated tax table.  
5. A new table will be added. Update the 'Effective Date' to the start date of the holiday. This will automatically adjust the expiration date of the previous tax tables.
6. Click 'Add Effective Date' to configure your regular tax rates. 
7. A new table will be added. Change the 'Effective Date' to the day you want the regular tax rate to go back into effect. This will automatically update the prior tax tables expiration date.
8. Click 'Save'

Step 2: Configure Alternate Tax Rules

Alternate tax rules allows us to create an alternate tax table for sales that exceed the tax-free threshold.

Quick Reminder: To access the Taxes tab, go to 'System Configuration' and select the 'Taxes' tab. Click 'Edit' to make changes.

1. Click the Configure Alternate Tax Rule. If you don't see this call our Support Team at 888-407-6287 

2. Click 'Add Effective Date' to configure your Alternate Tax Rule.
3. Update the Tax Table with your usual sales rates for sales that go over the tax-free limit.
4. Click 'Save'

Step 3: Applying the Alternate Tax Table Over the Tax-Free Threshold

We will begin with the transaction screen for a sale that exceeds the threshold. For transactions over the tax-free sales limit during the holiday, please follow these steps:

1. Click on 'Edit' by the customer profile

2. Click 'Edit Customer' and head to the 'Business' tab
3. Click 'Use Alternate Tax Table' and Click Save

Step 4: Verification and Testing

After setting up these configurations, it’s a good practice to test a few transactions to ensure the tax rates apply correctly. For example, simulate a sale under the threshold to verify that no tax is applied, and then test a sale over the threshold to confirm that the alternate tax table is used.

If any issues arise, double-check your settings in the Tax Nexus and the customer's profile to ensure everything is configured correctly.

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