Tax Classes & Rates

Screen-Shot-2018-11-20-at-2.04.09-am.png

  • Tax Classes can be assigned to Products and Categories, or applied when creating a Sale or Purchase
  • When assigned to Products and Categories, they will be automatically applied when adding that product or an item from that category to a Purchase or Sale  
  • When modifying Tax Classes, after the Name is set Tax Rates can be added or modified.
  • A Tax Class can contain Multiple Tax Rates
    • After setting the Name of a rate the rate Type can be set
    • Fixed rates are a fixed currency amount, e.g. $2 tax on an item regardless of it's price
    • Percentage rates are calculated from the price of the item being sold
    • Tax Included specifies whether the tax amount is already included in the item's price, or whether it should be calculated and added to the sale price when the item is added to a sale or purchase.  Taxes are calculated differently depending on whether they are included or not included
    • Reporting Only rates are calculated but do not affect totals regardless of how they are set up. These are intended for use where you may need to track percentage values of certain sales for tax refund purposes, where the tax is not passed directly to the client, but is required in later financial calculations. One example of this is withholding a percentage amount of a sale for a specific purpose (ie 2% of sales donated to charity) where you don't want to charge the customer that percentage.  These taxes will only appear on the Taxes Easy Report.