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Tax

A unit's VAT or GST rates — the tax a government charges on what is sold and bought, called VAT in many countries and GST in others — for what it sells and what it buys: each rate's figure, its kind, whether tax paid on purchases can be reclaimed, the accounts the tax waits in, and its box on the tax return.

Start with a set of rates

  1. Choose the unit in Settings for, if there are several.
  2. Press Add a starter set.
  3. Type What your tax is called: VAT, GST, Sales tax.
  4. Check the rates you need, name them, and give the standard and reduced figures your tax authority uses.
  5. Choose where tax owed waits, and where tax to reclaim waits — or leave each to be added to the chart.
  6. Press Add these rates.

Then: Each rate is offered on sales and purchases, and reclaimable. Zero-rated, exempt and outside the tax are 0%. A rate the unit already has by that name is left as it was.

Meridian's Boston office types VAT, keeps Standard at 20% and Reduced at 5%, and lets ORG-APP add VAT owed and VAT to reclaim: five rates and two accounts in one go.

Add a rate, or change one

  1. Press Add a rate, or Change on a rate's row.
  2. Give its Name, its Kind and its Rate (%).
  3. Choose what it is Used on: sales, purchases, or both.
  4. Choose where tax on sales is owed — not asked of a rate for purchases alone, which collects nothing to owe.
  5. For purchases, leave Reclaimable. checked where the tax can be claimed back, and choose where it waits; clear it where it cannot, and it stays in the cost.
  6. Under Boxes on the return, type the box each part goes in, if the authority's form numbers them: Sales before tax, Tax on sales, Purchases before tax, Tax on purchases.
  7. Press Save the rate.

Then: It is offered on the lines of invoices, bills, claims and Money out at that unit, on the side it is for. A rate already charged keeps its figure and its kind: to charge another figure, add the new rate and retire the old one.

Rather not? Press Retire at the end of a rate's row, then Retire it: it is no longer offered on a new line, and what was charged at it stays as it was. Bring back offers it again.

Who: Whoever keeps the organization's chart of accounts changes the rates: the top unit's finance keeper, an Owner or an Admin. Anybody else who reads the unit's book sees them.

If the tax on some purchases cannot be reclaimed

  1. Press Add a rate for a rate of its own — say, VAT 20% on meals, which the authority does not let you claim back.
  2. Choose Used on: Purchases.
  3. Clear Reclaimable.
  4. Press Save the rate.

Then: A purchase at that rate keeps its tax in what it cost, on a line of its own. The return shows it as kept in costs, never as tax to reclaim. Every tax figure is worked out on each line, in whole cents, half a cent rounded away from nothing, so a document and the return add up to the cent.

Grace adds VAT 20% on meals, for purchases, not reclaimable. A team lunch of 60.00 claimed with it puts all 60.00 in Meals, 10.00 of it the tax, kept in the cost.

Each unit keeps its own rates, as it keeps its own book. You see the units where you hold See the books.