Tax Types
The Tax Type register is used for accounting and posting taxes, primarily value-added tax. It holds all types of taxes and their rates that are used for purchases and sales.
It can be accessed from menu Settings | Financials | Tax Types.
Here is a description of form:
Tax Types
| VAT Code |
Filter by VAT Code |
| Name |
Filter by Name |
| Show Active |
Filter by All / Active or Inactive |
| ID |
It displays the ID of this tax type, which can be up to two characters long. The predefined transparent IDs have the following meaning:
First character:
- B - goods
- S - services
- N - VAT is not accounted for or we are not eligible for a VAT refund
- R - purchase of real estate
- Z - purchases where VAT is not an expense recognized for tax purposes
- D- distance selling in the EU
- M- assembling and installment of goods in the EU
- O- fixed assets
Second character:
- 0 - tax rate 0%
- 4 - tax rate 4%
- 5 - tax rate 8.5%
- 2 - tax rate 20%
See also Alter Tax Rate.
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| Label |
It displays the label of this tax type. |
| Description |
Here you can enter description of tax type, as shown on invoices. |
| Tax % |
It displays the tax rate of this tax type.
Note that if a tax type is already used in the Items register, altering its tax rate will affect the calculated prices!
Confirmation is required before changing tax rate (see Do you really want to change the tax rate?).
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| VAT is Calculated |
It defines whether the tax for transactions with this tax type should be accounted for. See example VAT is not accounted for. |
| Included in Tax Records |
It defines whether the tax for transaction with this tax type should be included in the tax records (accounts receivable and payable). See example VAT Is Not Included in Tax Records. |
| Not Recognized for Tax Purposes |
If checked, the VAT amount charged by suppliers under this tax type is not included in the goods purchase value or is not posted to the cost account. In this case, the tax amount is posted to the account for taxes not recognized for tax purposes as set for the document type. See examples:
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| Real Estate Purchase |
It defines whether this tax type applies for purchases of real estate. This should be used only for purchases of and prepayments for real estate.
Such turnover is shown separately in box 24 and at the same time in box 21 of the VAT-O form.
See example Real Estate and Fixed Asset Purchase.
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| Fixed Asset Purhcase |
It defines whether this tax type applies for purhcases of fixed assets.
For VAT-O returns of types 0,1,2 and 3 (up to 1.5.2004), the purchase of fixed assets is considered to be the purchase of fixed assets if the switch "Purchase for fixed assets" is selected in the document type of the receipt.
The different treatment of purchases of fixed assets is only applied in the VAT return type 4 - Return after 1.5.2004.
The fact that the purchase is a purchase of fixed assets from that date onwards is indicated by selecting the appropriate code of the tariff number.
See also the example Purchase of fixed assets - after 1.5.04.
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 (Reports) |
It generates a report - an overview of tax types.
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 (Copy Record) |
By clicking it you can copy the selected tax type. This function is especially useful when tax rates are changed: clone the tax type to be replaced and assign the newly created tax type a new ID, label and rate. |
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WARNING
Data in tables can be sorted simply by clicking the column header (see Sorting data).
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HINT
See Toolbar for a general description of its functions.
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WARNING
When an existing VAT tax (column tax %) is changed, 2 warnings appear:
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