How to Create & Apply a New Tax Option?

Summary

This guide explains how to set up and configure tax options for your business. We recommend starting with these three standard tax rates, though additional rates can be added as needed:

  • Standard Rate (20%) – applies to most items.
  • Reduced Rate (5%) – for items with a reduced tax rate.
  • Zero Rate (0%) – for tax-exempt items.

For more details on VAT rates, please refer to the official Government VAT website.


Step-by-Step Guide

  1. From the Home page, go to the System Configuration module.

    System

  2. Select Tax Options.

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  3. Click on Create New Tax Option.

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  4. Enter Tax Details:

    • Name: Provide a name for your tax option (e.g., "Standard Rate").
    • Percentage: Enter the tax rate (e.g., 5%).

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  5. Click Save to complete the setup.


Applying Tax Options

You can apply tax options to either Pricing Options or Facilities:

A) Apply a Tax Option to a Pricing Option

  1. If you haven’t created a Pricing Option, please refer to the Pricing Option Types guide.
  2. Once the Pricing Option is created, go to the General tab.

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  3. In the Tax Option field on the right, select the desired tax option from the dropdown menu.
    • Alternatively, choose Inherit from Facility to automatically apply the facility’s default tax rate.
  4. Click Save to confirm.

B) Apply a Tax Option to a Facility

  1. If you haven’t created a Facility yet, please refer to the Create a New Facility guide.
  2. When setting up the Facility, locate the Tax Option field.
  3. Choose the desired tax option from the dropdown menu.
    • For example, if Facility A has a tax option set to “Standard Rate,” all purchases made at Facility A will apply this tax rate, unless overridden at the Pricing Option level.

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Your tax options are now configured and ready to be applied across your business!

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