Question

Dawn's Technology Co provides computer services to which special sales tax rules apply. The company set up a taxable product/service item for sale and accepted the default Sales Tax category

How will Automated Sales Tax calculate sales tax on invoices for this product?
(select one)

A) It will not calculate sales tax at all
B) It will always calculate the sales tax based on the street address of the seller
C) It will calculate sales tax based on the normal state rate, not the speciality rate
D) It will calculate the sales tax based on the shipping address of the customer

Answer 1

Correct answer:

Option(D) is correct answer that the Automated Sales Tax calculate sales tax based on the shipping address of the customer because the sales tax is based on area where the product or service is to be delivered to the customer.

Incorrect answers:

Option(A) is incorrect answer because the sales tax is calculated on all products or services to be delivered based on the shipping address of the customer.

Option(B) is incorrect answer because the sales tax is calculated based on the the shipping address of the customer and not on the street address of the seller.

Option(C) is incorrect answer because the sales tax is not based on the normal state rate and not on the Speciality rate, but it is based on the shipping address of the customer.

So correct answer is option(D)