The Taxes feature is available in the Sales Pack extension.
The feature allows you to manage taxes, such as VAT, GST, sales tax, excise, and other taxes. With tax profiles, you can configure the system to automatically apply the appropriate taxes based on the customer or supplier and the product.
Tax codes
The tax codes functionality is the foundation of the tax engine. A tax code is a unique identifier (like VAT20 or EXMPT) that serves two important roles:
- defines tax calculation logic;
- provides reporting capabilities.
Every document line item is associated with a tax code. A single tax code can represent one tax or multiple taxes applied together. When a document, such as an invoice, is created, the system automatically calculates and breaks down the tax component of the sale. This data can then be used for reporting.
Reporting
The Sales Pack is integrated with the Reports feature of the Advanced Pack extension. It is shipped with pre-built tax-related reports: Sales Tax Summary, Purchase Tax Summary, and Sales List by Tax Code.
Documentation
Learn more about the Taxes feature in the documentation.