Taxes

Taxes on the platform are rates you define once and then apply to invoice and bill lines, with fiscal positions to swap the rate for particular customers or regions. Every posted document shows the tax it charged or paid. This page covers defining rates, applying them, using fiscal positions, and where to read what you owe.

Define tax rates

1. Open the Invoicing app's Accounting menus and go to the taxes list.
2. Click New and name the tax.
3. Set the type to mark it a sales tax or a purchase tax.
4. Set the rate as a percentage or a fixed amount.
5. Point the tax at the accounts that collect it.

Add one tax per rate you charge or pay.

Apply taxes on sales and purchases

Once a tax exists, set it as the default on a product. Every invoice or bill line for that product picks up the tax, and the platform computes the tax amount on the line. You can change the tax on any line before you post. Sales taxes show on customer invoices. Purchase taxes show on vendor bills.

Fiscal positions

A fiscal position swaps taxes and accounts for a group of customers or vendors. Use one when a customer is tax-exempt, sits in another region, or needs a different rate.

1. Build the position by mapping a default tax to the tax that customer should see.
2. Set the position on the customer record.
3. The platform applies the swap on every document for that customer.

See what tax you owe

Every posted invoice and bill shows its tax amount. To total what you collected and paid over a period, group posted documents by tax in the pivot analysis and read the sums.

The formatted period tax return, the report you file from, comes with the accounting package. Ask us to enable it for your workspace.

Related

• Accounting overview
• Chart of accounts & journals
• The accounting package