Section 4: Setup > Taxes

Taxes Overview

In this setup area you may specify which taxes you are required to collect locally, as well as how to calculate each tax. While the tax settings set up here are defaults for use throughout the entire system, custom tax rates and exemptions may be applied on a per situation basis for each customer account, repair invoice, sales invoice, or credit note. All taxes are calculated after any applicable discounts have already been applied.

Taxes may be set up for up to three major categories. Within each tax category, individual tax rules may be configured for each province or state. For example, in Canada the first tax category might be GST/HST for collection of federal taxes, and the second tax category might be PST/QST for collection of provincial taxes. In both cases, individual tax rules would be configured for each province as necessary. Reports later allow for the breakdown of taxes collected by category within each province or state.

Since, in general, taxes can be considered to be a markup on the actual invoice amounts, taxes can also be used to collect any type of surcharge that is based on a percentage of the original invoice. For example, a tax could be configured to pass on a credit card merchant’s surcharge to customers who choose to pay by credit card.


Editing Default Tax Categories and Rules