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Sales Tax Rate
Encapsulates a specific sales tax rate that must be paid for income or may be claimed for expenses in the business.
Remarks
All external financial transactions in the system should have a sales tax rate applied as part of the reconciliation process. This will make the transactions available for sales tax return generation.
Properties
| Property | Definition |
|---|---|
| In Active | Marks the tax rate in inactive so that it becomes unavailable for new transactions. … |
| Is Default | For each of the tax types (Purchases/Sales/Exempt), on tax type can be specified as the default, and the system will suggest this when new transactions are added to the system. |
| Name | Display name for the tax rate. |
| Rate | Percentage tax to apply for the tax rate. … |
| Type | Specifies whether the Sales Tax Rate applies to Purchases (Expenses), Sales (Income), or Tax Exempt transactions. |
In Active
If a tax rate has been associated with any transactions it will not be possible to delete it. Marking it as inactive will prevent it from being displayed as an option to associate with any future transactions.
Rate
When sales tax rates are changed by the taxation authority, create a new Sales Tax Rate with the new rate percentage and mark the old tax type as inactive. Changing the rate for a tax type that has already been applied to historic transaction will have the effect of changing the tax rate for all those historic transactions, breaking the integrity of your accounts.
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