Tax Classes & Rates

-
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.