To add a Tax type to your Taxes options on the Expenses, go to the Settings Manager module from the top of your screen.
Then click on the Add Tax option from the Taxes left side navigation menu:
This will open the Tax Editor window:
From here, you can enter the following:
- Name - enter the name of the tax you are creating
- Rate - enter the rate for this Tax. The Tax will be calculated according to the rate you set in this field.
- Country - select the country from the dropdown list to choose where this Tax will be applicable. Multiple selection is not allowed.
- Region - multiple selection allowed. This area can have various rates based on where you are. Example Canada GST rate affects BC, AB, SK, MB , and QC.
Note: The VAT Country would be the European Union, and the Region would be the Countries that have the same VAT %
If you are missing a required region, you can create one. To add a region, click on the Add Region button.
It will open the Region Editor window to let you enter the name of the region you wish to add/create.
Click OK to save.
You can also check the boxes for the two available options:
- Reclaimable and
- GL Default – If you mark this checkbox, you will be required to input the GL Segment and GL Code for this Tax to set it as a default.
Once you enter all the necessary information, click OK to save.
Generally, any non-reclaimable Taxes will go into the debit line of expense.
Note: In the output files from the Automation Manager this will create a debit line and a tax link for the expense. For example, the whole cost is $105.00. There will be two lines: one for the debit of goods for $100.00 and the following line for $5.00 for the tax.
As soon as you save it, the created Tax should be available in the Tax list on the Taxes workspace.
Watch the video below about managing Taxes.