This section allows you to setup the various Taxes applicable to your country.
Adding and Editing Tax Types
- Navigate to the Tax screen from the Settings menu.
- Click New on the actions menu, or select an item to edit.
- Add a Name and Code for the Tax you would like to add. The code will be used as a reference for you to identify the Tax in various ChiDesk screens.
- Set the Percentage for this Tax.
- Click the Save button to save your changes.
Tax Groups allow you to setup a Tax rate that is made up of one or more taxes, fees or charges. Simply tick which Taxes make up the Tax you are setting up and this split will be shown on Invoice reports.
Compound Tax Rates
If you have a more complex tax structure there are ways to support this using tax groups.
For instance, consider the following example where Service sales have a Municipal Tax of 7%, a Service Charge of 10%, VAT of 5%, and VAT on the Service Charge.
To support this setup you would need to create a Municipal Tax of 7%, a Service Charge of 10%, a VAT rate of 5% and an additional VAT rate of 5.5% to account for the extra 0.5% vat on Service Sales (5% of the 10% Service Charge rate). Finally, you would create a Services tax and tick the Municipal, Service Charge and Vat at 5.5% taxes. For other items, you would use the standard 5% rate.
- When a Client Invoice or Slip is printed all tax groups will be shown split out along with their calculated amounts. In the above example both the two VAT rates would show, so in order to avoid this you can simply name the two rates with the same VAT 5% name, and this will then merge the rates on the print-out.
Deleting Tax Types
- From the Taxes screen open the required item that you would like to delete.
- Click the Delete button on the action bar.
- If the item is not being used you will be prompted to confirm the delete by clicking the Delete button.