States that require sales tax on aircraft rental often allow tax exempt status for flights where dual instruction is given.

Chronos may be configured to automatically tax exempt usages on aircraft that fall under this rule.

Forcing Tax Exempt Status for Dual Flights

  1. Edit the flight instructor bookables.
  2. Select the Accounting tab on the Bookable Edit form.
  3. Enable the Force Tax Exempt Service setting.

force tax exempt bookable

Logging Tax Exempt Usages

In order for Chronos to detect a dual flight, the usage must be logged using the Reservation drop down menu.

log exempt usage

  1. Select the Log a Usage option from the reservation drop down menu.
  2. Enter the hobbs/tach times for the flight as usual.
  3. The usage table will confirm the taxable items.

tax exempt badge

The client will not be charged sales tax for the usage, and the usage will not be included in Chronos' Sales Tax Report.

Administrator and manager users may modify the tax settings for usage entries by clicking Settings. WARNING: if the usage invoice has already been exported to Quickbooks, modifying the settings in Chronos will not automatically affect the Quickbooks document.

usage settings

Tax Exempt Activity Types

The Activity Type setting may be used to configure sales tax exempt activities.

  1. Browse to Menu / Administration / Server Settings / Lists
  2. Edit or create a new activity type.
  3. Enable the Tax Exempt setting.

    tax exempt activity setting

Tax exempt activity types will be labeled in the listing.

activity type listing showing tax exempt label

Logging Tax Exempt Usages

Assign the activity type when logging usages to enable the tax exempt handling.
tax exempt usage logging via activity type

After saving the usage entry, verify the tax exemption.
tax exempt usage

TIP: the activity type will automatically pass from the reservation to the usage entry. Assign the tax exempt activity type at the reservation level if it is known to facilitate the pass through to the activity.

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