Taxation Rules is a feature in Erply where taxes can be flexibly assigned:
- to a location, or multiple locations;
- to a product group, or multiple product groups;
- and the rules can have an optional price threshold,
- and an optional date range.
Use the Taxation Rules module to set up the following special cases of taxation:
1 - Sales Tax Holidays (tax-free weekends) - US
Configure a lower rate or a 0% rate to apply on the specified dates. In some states, the sales are fully tax exempt during a sales tax holiday; in others, only the state tax is omitted and customers still pay country
A list of tax holidays for 2026 is available from various online sources, for example here.
Use the product group restriction if the tax free weekend only applies to certain categories of goods.
2 - Taxes dependent on item price - US
This taxation rule is present in multiple states and often applies to items of clothing. Some examples are:
- New York – Clothing & Footwear Items under $110 per item are exempt from state sales tax.
- Vermont – Clothing Similar to New York: clothing items under $110 are exempt from state sales tax; $110 and over are taxable.
- Connecticut – Clothing & Footwear Items of clothing or footwear sold for under $50 per item are exempt from the state's 6.35% sales tax.
- New Jersey – Clothing Most clothing is exempt, but fur clothing and formal wear above certain price points are taxable.
Make sure to consult your local legislation.
3 - State or provincial differences in exempted goods - US & Canada
Tax-exempt categories of goods vary across US states.
Similarly, in Canada, each province defines the categories of goods for which only GST is collected (and no PST), or which are fully tax exempt.
Formerly, Erply allowed to configure this in the “Product groups” module, by location.
The new Taxation Rules module is more convenient, since:
- It is possible to select groups of locations, and it is not necessary to repeat the setup for each location individually.
- It is possible to select multiple product groups, and it is not necessary to repeat the setup for each group individually.
- The tax rate applied to a product group applies to items in sub-groups as well.
4 - Where to find Taxation Rules
Open Apps > Apps > App store.
Search for an application “Tax rates and VAT rates”. Update the app to the latest version.
Open the app and navigate to “Taxation Rules” (new)
5 - Priority of the taxation rules
In Erply's hierarchy, the new taxation rules have the highest priority, outside special tax exemption cases.
In decreasing order of priority (rules at the top take precedence over subsequent ones):
- Tax-free sale
- Tax exemption
- Tax-free product
- Taxation rules (NEW)
- Product-group specific tax rates
- Location multi-tier tax
- Register tax
- Product tax rate
The rules of priority are explained in depth in the Algorithms > Taxes article.