Add Taxes

Steps to Add a Tax Type to Your Expense Options

1. Open Settings Manager
   From the top of your screen, click the Settings Manager module.
   
2. Access the Taxes Section
   Click on Taxes in the left-side navigation menu.
3. Select Add Tax
   Click on the Add Tax option in the Taxes section of the left-side navigation menu.
   
4. Fill in Tax Details
   The Tax Editor window will open.
   
   Enter the following information:
   1. Name: Enter the name of the tax you are creating.
   2. Is Tip: If checked, the Rate field will no longer be fillable.
   3. Rate: Enter the tax rate. The Tax will be calculated based on this rate.
   4. Country: Select the country where the tax applies from the dropdown list (only one country can be selected).
   5. Region: Select the region where the tax rate applies (multiple regions can be selected). For example, in Canada, the GST rate affects BC, AB, SK, MB, and QC.
   6. Note: For VAT, the country would be the European Union, and the region would be the countries sharing the same VAT percentage.
5. Add a Region (If Needed)
   If the required region is missing, you can create one by clicking the Add Region button.
   
   This will open the Region Editor window, where you can enter the name of the new region.
   
   Click OK to save.
6. Additional Options
   You can also select the following options by checking the boxes:
   1. Reclaimable
   2. GL Default: If checked, you must enter the GL Segment and GL Code to set this tax as the default.
7. Save the Tax
   Once all necessary information is entered, click OK to save.
   After saving, the new tax will appear in the Tax List in the Taxes workspace.

Additional Information

• Non-reclaimable taxes typically go into the debit line of the expense.
• In output files from the Automation Manager, this will create a debit line and a tax link for the expense. For example, for a total cost of $105.00, there will be two lines: one debit line for goods at $100.00 and one line for the $5.00 tax.

For more information on the Is Tip checkbox, please refer to this article.

Watch the video below for a visual guide on managing Taxes.