Tax Rule
1. Prerequisites
Before creating and using a Tax Rule, it is advised to create the following first:
2. How to create a Tax Rule
- Go to the Tax Rule list and click on New.
- Under Tax Type select whether the tax will be applied at Sales or Purchase.
- Select the Tax Template to be applied.
- Save.
You can list Items online using the Website module. Selecting ‘Use for Shopping Cart’ will use this Tax Rule for Shopping Cart transactions also. To know more, visit the Shopping Cart page.
> Note: It is advised to not use the Sales/Purchase Template selected here in Item Tax Template, it may cause interference. If you want to use same tax rates for Tax Rule and Item Tax Template, use a different name for the Sales/Purchase Tax Templates.
3. Features
3.1 Auto applying Tax Rule based on Customer/Supplier
Choose a Customer/Supplier if the tax is intended for a specific party. If this Tax Rule applies to all Customers/Suppliers, leave it as All Customer Groups/All Supplier Groups.
Upon selecting a Customer/Supplier, their Billing and Shipping addresses will be retrieved if they are stored in the Customer/Supplier master.
3.2 Auto applying Tax Rule based on Item / Item Group
3.3 Setting a Tax Category
Setting a Tax Category allows applying multiple Tax Rules to a transaction based on different factors. To know more, visit the Tax Category page.
3.4 Validity
Set a Start and End Date if the tax is to be applied only for a specified period. Leaving both dates blank will result in the Tax Rule to have no time limits.
3.5 Priority
Assigning a priority number here will determine the order in which a Tax Rule will be applied if multiple Tax Rules have similar criteria. ‘1’ indicates the highest priority, ‘2’ denotes a lower priority, and so forth.