Adding and editing tax groups

Create sales and purchases tax groups to which you assign tax authorities.

Note: For SST, you must create separate tax groups for Sales Tax and Service Tax.

Note: Defining a tax reporting source currency for multicurrency companies allows you to report taxes in a currency that is different to the customer/vendor currency or the functional currency.

  1. From Tax Services, click Tax Groups to open the “Tax Groups” window.
  2. In the Tax Group field, click Finder button to select an existing tax group to edit, or click Add button to enter a unique code to set up a new group.
  3. In the Transaction Type field, select Sales.

    Image of the Tax Groups screen

  4. To use multicurrency accounting, select the Tax Reporting Currency and Tax Reporting Rate Type.

    Note: The currency of the Tax Authority must be the same as that of the tax group. All customers and vendors assigned to a tax group must use the same currency as the group.

    Note: For SST, the Tax Reporting Rate Type should be set to AV.

  5. In the Tax Calculation Method field, select the method used by the group to calculate tax.
    • Calculate tax by summary. The tax is calculated by multiplying the invoice total by the tax rate.
    • Calculate tax by detail. The tax is calculated on each invoice detail, by multiplying the tax base by the tax rate. Select this option for SST.
  6. In the table, complete the following columns for each Tax Authority.
    • If the tax charged by the authority is taxable by another authority lower down in the list, in the Taxable column, type Yes.
    • If there is a surtax on the tax amount for the authority, in the Surtax column, type Yes. In the Surtax on Authority column, select the Tax Authority on which the surtax is based.
  7. In the Transaction Type field, select Purchases, and repeat the above steps.
  8. Click Save to save your changes to the Tax Group.

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