This article will provide the option of having a Trade In Tax Limit so that the sales tax credit for trade-ins will not exceed the sales tax for the unit/s being purchased by the customer
For example:
- Mr. Smith is buying a new unit and the Sales Tax payable on that new unit is $250
- Mr. Smith is trading in a unit and the Sales Tax credit on that unit is $275
- The Dealership cannot have the Sales Tax credit ($275) exceed the Sale Tax payable ($250) and in this example, it will exceed it by $25
The option of setting up a Trade In Tax Limit will stop the above scenario from occuring
How to setup a Trade In Tax Limit
- From the Blackpurl Header > click on
> System settings
- From the System Setting Dashboard click on
- From the Settings & Controls options > Tax Settings - Trade tax credit can not exceed unit tax
When disabled - as per below - there will be no limit on the amount of sales tax calculated for trade-in
To enable, move the toggle and there will now be a limit on the amount of sales tax calculated for trade-in
The sale tax credit for trade-ins will now not exceed the sales tax for the new units being sold
Please note: If your Dealership has Tax included Pricing (our Dealerships in Australia and New Zealand) then this feature will not be available to you