Overview
Setting up sales tax is essential for accurately calculating and collecting taxes on the services and products your business provides. This guide walks you through configuring your sales tax rates and settings based on your business location and requirements.
Who uses this feature
Administrators, office employees, managers, accountants, and bookkeepers
Applies to all business types
Applies to all trades
Feature configuration
Account configuration is required to use this feature. Please contact Technical Support for details.
Things to know
ServiceTitan is not responsible for knowing the tax rules of your jurisdiction. We’ve listed the basis of some tax laws to help jump-start your setup.
When setting up your account for sales tax, you may need to ask your success or implementation manager to make certain features available to you, such as:
Allowing multiple tax rates per tax zone
Allowing separate tax rates for labor and materials
Allowing technicians to set sales tax status per item while out in the field
Setting all commercial customers as taxable and residential customers as non-taxable by default
Automatically changing the sales tax status for the service location to be the same as the sales tax status for the bill-to customer
Adding Washington state sales tax
Set up sales tax by tax zone
The Sales Tax by Tax Zone setup allows sales tax to be tracked by location-specific rates. To do this, you need to create tax zones and set the tax rates for each tax zone.
To set up your tax zones in ServiceTitan:
Go to the navigation bar and click Settings
.In the side panel, go to Invoicing > Tax Zones.
Click Add Tax Zone.
Enter a Name for the tax zone. For example, you can enter Glendale or Los Angeles County.
Enter a Tax Rate.
Enter the zip codes you service into the ZipCodes field. This is how ServiceTitan determines which tax zones are assigned to your customers.
If you have certain sales tax rates that only apply to one or more zip codes, enter that zip code or those zip codes.
If you have one rate for all zones for your business, you can enter an asterisk (*) instead of listing the zip codes. This assigns the tax zone to every customer by default, unless their address has a zip code that is listed in another tax zone.
If you don’t want taxes to be calculated and instead want taxes applied on a job-by-job basis for the zone, leave the ZipCodes field blank.
Click Save and repeat these steps for each tax zone as needed.
After creating the tax zones, click Set Tax Zones. This applies the changes and assigns your customers their respective tax zones.
Set up multiple sales tax by tax zone
You can also track multiple sales tax rates within the same tax zone. This is ideal if your tax zone contains both state and county taxes, and you want to separate these to make tracking and filing sales taxes easier.
Note: Account configuration is required to use this feature. Please contact Technical Support for details.
To set up multiple sales tax in a tax zone:
Go to the navigation bar and click Settings
.In the side panel, go to Invoicing > Tax Zones.
Click Add Tax Zone.
Enter a Name for the tax zone. For example, you can enter Glendale or Los Angeles County.
Select Charge multiple taxes for this zone.
Enter a Tax Name for each rate as required. For example, you can enter Culver City or Santa Monica.
Enter a Tax Rate. Click Add Another for each of the remaining rates you need to add.
Enter the zip codes you service into the ZipCodes field. This is how ServiceTitan determines which tax zones are assigned to your customers.
If you have certain sales tax rates that only apply to one or more zip codes, enter that zip code or those zip codes.
If you have one rate for all zones for your business, you can enter an asterisk (*) instead of listing the zip codes. This assigns the tax zone to every customer by default, unless their address has a zip code that is listed in another tax zone.
If you don’t want taxes to be calculated and instead want taxes applied on a job-by-job basis for the zone, leave the ZipCodes field blank.
Click Save and repeat these steps for each tax zone as needed.
After creating the tax zones, click Set Tax Zones. This applies the changes and assigns your customers their respective tax zones.
Set up separate taxes for labor and chargeable materials
You can also set up separate tax rates for labor and materials.
Note: Account configuration is required to use this feature. Contact the ServiceTitan Technical Support for more information.
Go to the navigation bar and click Settings
.In the side panel, click Invoicing > Tax Zones.
Click Add Tax Zone.
Enter a Name for the tax zone. For example, you can enter Glendale or Los Angeles County.
Select Charge different tax rate for labor and chargeable materials.
Enter a Labor Tax Rate and a Material Tax Rate.
Enter the zip codes you service into the ZipCodes field. This is how ServiceTitan determines which tax zones are assigned to your customers.
If you have certain sales tax rates that only apply to one or more zip codes, enter that zip code or those zip codes.
If you have one rate for all zones for your business, you can enter an asterisk (*) instead of listing the zip codes. This assigns the tax zone to every customer by default, unless their address has a zip code that is listed in another tax zone.
If you don’t want taxes to be calculated and instead want taxes applied on a job-by-job basis for the zone, leave the ZipCodes field blank.
Click Save and repeat these steps for each tax zone as needed.
After creating the tax zones, click Set Tax Zones. This applies the changes and assigns your customers their respective tax zones.
Set up taxable equipment and services
For sales taxes to be calculated properly, configure your taxable equipment and services in ServiceTitan.
To set equipment and services as taxable:
Go to the navigation bar and click Pricebook.
In the side menu, click Services or Equipment.
Make sure Edit Mode toggle is set to On.
Click More next to the item.
Select View/Edit Service or Equipment from the dropdown.
On the Edit Equipment or Edit Service screen that opens, select Taxable.
When finished, click Save.
Set up multiple pricebook items as taxable
If you need to change multiple items, you can export then re-import Pricebook
To do this:
Go to the navigation bar and click Pricebook.
In the side menu, click Import / Export.
On the Import/Export screen that opens, click Export.
Select your export settings and click Export.
Open the resulting Excel file.
In the appropriate Excel tab, go to the Taxable column.
Enter 1 in the Taxable column if the item is taxable. Enter 0 in the column if the item is nontaxable.
Save your work and import the Pricebook back into ServiceTitan. For more, see Import and export your pricebook.