Handle tax the way your country does
Define the taxes you use at the rates you use, on prices that include them or do not. Each knows its account.
More than one rate
Several rates, some of them zero, set on the item, the line or the whole document.
Inclusive or not
Prices that already contain the tax, and prices that do not, handled as two different things.
Its own account
Each tax lands where it belongs rather than everything going into one bucket you have to unpick.
Both directions
Tax you charge, tax you pay on purchases, and tax somebody deducted before paying you.
A receipt with the customer’s deduction shown separately from the cash, and the account it landed in. Awaiting a capture.
Tax happens where the document happens.
Deduct from suppliers the same way
When you hold tax back from a supplier, it becomes something you owe the authority rather than the supplier. What is remittable is a balance you read.
See how accounting worksTax reaches four places at once
Each rate carries the account it belongs to, and raising the document is the entry. The tax account moves as the sale or the purchase happens rather than at month end.
Controlled the way everything here is controlled
Questions people ask first
Can I run more than one tax rate?
Yes, as many as your trade needs, including zero rated, each landing in the account it belongs to rather than all in one.
Can I price with tax included?
Yes, per rate. A counter price that includes tax and a trade price that does not can sit in the same business without anybody doing arithmetic.
Where do I set the rate?
On the item, the line or the document, so the usual case is automatic and the exception is still possible.
What happens when a customer holds tax back?
The invoice clears in full and what they held sits in its own account as a credit you can claim. Nothing stays open pretending to be a debt.
What happens when I hold tax back from a supplier?
The supplier is settled in full and what you held becomes something you owe the authority, as a balance you can read and remit.
Can I see what I owe the authority?
What you charged, what you paid, what was withheld from you and what you withheld, each in its own account and readable over any period.
Does tax reach the books on its own?
Yes. Raising the document is the entry, so the tax account moves as the sale or the purchase happens rather than at month end.
Can rates differ by location?
Yes, where your authority says they do, so a business trading across a border does not need two systems.
What if a rate changes?
Change it, and documents raised afterwards carry the new rate. Everything already raised keeps the rate that applied when it was raised.
Does it file my return?
No. It gives you the figures the return needs, in accounts you can read and reconcile. Filing stays with you or your accountant.
Raise one and watch the tax land
Invoice with two different rates, take a payment with tax deducted, then read the tax accounts.