Taxes

Your business’ financials are affected by regulatory taxes and each organization has different country specific taxes to adhere to. You may have added Taxes in the Quick Setup section. You can edit or add further Taxes through the Settings section.


Enabling Taxes

To enable taxes, follow the steps below:

Enable Tax


Adding New Taxes

To add a new Tax, follow the steps below:

New tax

Note:

What is a Compound Tax?
In some countries you might have to collect more than one tax from your customers. It is for you to pay to your local province and another to the federal authority.
In certain cases, the provincial tax is applied on the total that includes the item or invoice amount as well as the federal tax amount. Such taxes are called as Compound Taxes.

What if I uncheck the “This is a value added tax” box?

It will be considered as a Non-Value Added Tax. In some provinces, tax on purchases cannot be reclaimed. In this case, the tax cannot be treated as a liability but an expense.


Editing Taxes

To edit an existing Tax, follow the steps below:

Edit tax


Deleting Taxes

To delete an existing tax, follow the steps below:

Delete tax


Adding a New Tax Group

To create a Tax Group, follow the steps below:

Add Tax group


Adding a New Tax Exemption

There might be situations where you are exempt from paying taxes because of the item or the customer to whom you are selling the product. For example, the sale of medicines is exempt from sales tax in New Jersey.

To create a Tax Exemption, follow the steps below:

Add Tax Exemption


Adding a New Tax Agency

To create a Tax Agency, follow the steps below:

Add Tax Exemption


Other Actions

You can mark any one of the taxes added as the default tax. Default Tax can be useful for the following scenarios.

To mark a tax as the default tax, hover the cursor over the tax you want to make it as default and click on the mark as default button.

Marking Tax as a Default

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