Set up tax rates
Add the VAT, GST or sales tax rates you charge, so invoice and bill lines work out tax for you.
Tax rates are the VAT, GST or sales tax percentages you charge. Each product has one, so invoice lines fill in the right tax, and your tax return adds it all up.
Steps
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Open Sales & Invoicing, then Tax rates. It lists your rates. The one marked Default is used on new lines without a product.
Open "Tax rates" -
Type a name and the rate. Under Add a tax rate, for example "Reduced GST" and
5.Name and rate -
Choose the VAT category (e-invoices only). Automatic is right for most rates. Pick Exempt, Reverse charge or another category if your e-invoices need it.
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Click Add rate. It can now be picked on invoice, quotation and bill lines, and on products.
Click "Add rate" -
Use it. Set it as a product's tax rate, so lines with that product fill it in.
Good to know
- Tax you charge goes to Sales Tax Payable in your books; tax on bills goes to Purchase Tax Recoverable. The tax return sets one against the other.
- Remove only takes a rate off the list for new lines; documents that used it keep it.