(Classic Version) Trade In Tax Credit cannot exceed Unit Tax

Modified on Mon, 19 May at 3:40 PM

This article will give information of a tax setting where 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 from the Trade In ($275) exceed the Sale Tax payable from the new Unit purchase ($250) and in this example, it will exceed it by $25

To stop the above scenario then you will need to enable the relevant Tax Setting

How to enable Trade In Tax Credit cannot exceed Unit Tax

From the Blackpurl Header > click and then select

Go to Settings tab > General Settings > Trade tax credit cannot exceed unit tax

When disabled (as above) - there will be no limit on the amount of sales tax calculated for trade-in

To enable so that the Trade tax credit cannot exceed unit tax, 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

If you have made a change, don't forget to scroll down to find the

to save the change

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