Managing Tax

Introduction

Tax management is enabled by default in the system. In order to define tax, first we have to set up tax category and then tax under each tax category. By default Tax category ‘Tax standard’ is defined in the system. Under that tax type ‘VAT’ is also defined by default. Follow below steps to define custom tax details.

Adding a new tax category

Under menu Administration→Stock, click the button ‘Tax categories’. Click on the plus button to add new category. Enter tax category name in the ‘Name’ field and then press save button.

Adding a new tax

Under menu Administration→Stock, click the button ‘Taxes’. Fill the data as shown below. Fields, Name, Tax category, rate and order are mandatory. On the sales screen tax category is displayed, which internally use the tax with order number 1. This will help you to keep existing tax rates under that category in case if there is any change in tax. Always keep the active tax with order number 1 to pick the correct tax.