Walkthrough: Free items and taxes

Article12/12/20231 min read

When an item is given for free to a customer (or from a vendor) and the customer is normally charged for the tax, you probably don’t want to charge that customer with the tax in this transaction.

In this case you can setup a second rule that is the same as the one that is normally used but now you add a Reason Code to the rule and set the Movement Type for that rule to Taxed.