Tax Rates
The Tax Rates section lets you view and manage all tax rates used across your organization’s transactions. After you enable VAT, the following default rates are automatically available.
Default Tax Rates
The following rates are created by default and cannot be edited or deleted.
| Tax Name | Rate (%) | Tax Type |
|---|---|---|
| Reduced Rate | 8 | Value Added Tax |
| Standard Rate | 16 | Value Added Tax |
| Zero Rate | 0 | Value Added Tax |
Note: Default tax rates cannot be edited, deleted, or marked as inactive.
Add a Tax Rate
To add a new tax rate:
- Click Settings in the top right corner of the page.
- Click Taxes under Taxes & Compliance.
- Click Tax Rates.
- Click + New Tax in the top right corner.
- Enter the following details:
| Field | Description |
|---|---|
| Tax Name* | A name to identify this tax rate. |
| Rate (%)* | The percentage at which this tax is charged. |
| Tax Type* | Select the type of tax: Value Added Tax, Special Tax on Production and Services, or Local Tax. |
| This tax is a compound tax | Check this option if the tax is calculated on top of a primary tax (i.e., a second tax charged in addition to the primary tax). |
- Click Save.
Edit a Tax Rate
Note: Default tax rates (Reduced Rate, Standard Rate, and Zero Rate) cannot be edited.
To edit a tax rate:
- Click Settings in the top right corner of the page.
- Click Taxes under Taxes & Compliance.
- Click Tax Rates.
- Hover over the tax rate and click the dropdown icon at the right end of the row.
- Click Edit.
- Make the required changes and click Save.
If the tax rate has already been applied to transactions, you will be asked to confirm whether to update the rate in those transactions as well.
Delete a Tax Rate
Note: Default tax rates (Reduced Rate, Standard Rate, and Zero Rate) cannot be deleted.
To delete a tax rate:
- Click Settings in the top right corner of the page.
- Click Taxes under Taxes & Compliance.
- Click Tax Rates.
- Hover over the tax rate and click the dropdown icon at the right end of the row.
- Click Delete.
- In the pop-up, click OK to confirm. The rate can no longer be applied to transactions.
Mark a Tax Rate as Inactive
If you no longer use a tax rate but do not want to delete it, you can mark it as inactive. Inactive tax rates will not appear in transaction dropdowns.
Note: Default tax rates (Reduced Rate, Standard Rate, and Zero Rate) cannot be marked as inactive.
To mark a tax rate as inactive:
- Click Settings in the top right corner of the page.
- Click Taxes under Taxes & Compliance.
- Click Tax Rates.
- Hover over the tax rate and click the dropdown icon at the right end of the row.
- Click Mark as Inactive. The rate can no longer be applied to transactions.
Mark a Tax Rate as Active
To restore an inactive tax rate:
- Click Settings in the top right corner of the page.
- Click Taxes under Taxes & Compliance.
- Click Tax Rates.
- Click the Active taxes dropdown at the top of the list and select Inactive taxes.
- Hover over the tax rate and click the dropdown icon at the right end of the row.
- Click Mark as Active. The tax rate can now be applied to transactions.
View Associated Records
To view the transactions a tax rate is applied to:
- Click Settings in the top right corner of the page.
- Click Taxes under Taxes & Compliance.
- Click Tax Rates.
- Hover over the tax rate and click the dropdown icon at the right end of the row.
- Click View Associated Records.
The Associated Records pane will list every transaction where the tax rate is applied.
Tax Groups
A tax group lets you combine two or more tax rates and apply them together on a single transaction line item. The total rate of a tax group is the sum of all rates in the group.
Create a Tax Group
To create a tax group:
- Click Settings in the top right corner of the page.
- Click Taxes under Taxes & Compliance.
- Click Tax Rates.
- Click the dropdown arrow next to + New Tax and select + New Tax Group.
- Enter the Tax Group Name.
- Select the taxes to include by checking the boxes next to each rate.
- Drag the rates to reorder them if needed.
Note: Compound taxes are always placed at the bottom of a tax group, regardless of the order you set.
- Click Save.
Edit a Tax Group
To edit a tax group:
- Click Settings in the top right corner of the page.
- Click Taxes under Taxes & Compliance.
- Click Tax Rates.
- Hover over the tax group and click the dropdown icon at the right end of the row.
- Click Edit.
- Make the required changes and click Save.
If the tax group has already been applied to transactions, you will be asked to confirm whether to update the group in those transactions as well.
Delete a Tax Group
To delete a tax group:
- Click Settings in the top right corner of the page.
- Click Taxes under Taxes & Compliance.
- Click Tax Rates.
- Hover over the tax group and click the dropdown icon at the right end of the row.
- Click Delete.
- In the pop-up, click OK to confirm. The tax group can no longer be applied to transactions.
Mark a Tax Group as Inactive
If you no longer use a tax group but do not want to delete it, you can mark it as inactive. Inactive tax groups will not appear in transaction dropdowns.
To mark a tax group as inactive:
- Click Settings in the top right corner of the page.
- Click Taxes under Taxes & Compliance.
- Click Tax Rates.
- Hover over the tax group and click the dropdown icon at the right end of the row.
- Click Mark as Inactive. The tax group can no longer be applied to transactions.
Mark a Tax Group as Active
To restore an inactive tax group:
- Click Settings in the top right corner of the page.
- Click Taxes under Taxes & Compliance.
- Click Tax Rates.
- Click the Active taxes dropdown at the top of the list and select Inactive taxes.
- Hover over the tax group and click the dropdown icon at the right end of the row.
- Click Mark as Active. The tax group can now be applied to transactions.
View Associated Records
To view the transactions a tax group is applied to:
- Click Settings in the top right corner of the page.
- Click Taxes under Taxes & Compliance.
- Click Tax Rates.
- Hover over the tax group and click the dropdown icon at the right end of the row.
- Click View Associated Records.
The Associated Records pane will list every transaction where the tax group is applied.