Tax Configuration Guide

Understanding Tax Settings

Proper tax configuration ensures accurate charging and reporting. Navigate to Settings > Tax to get started.

Adding Tax Rates

1. Click Add Tax Rate
2. Enter a name (e.g., "Standard VAT", "Reduced GST")
3. Enter the percentage rate
4. Select applicability (products, services, or both)
5. Save

Tax Groups

For jurisdictions with multiple tax components:

1. Create individual tax rates
2. Group them under a Tax Group
3. Assign the group to products

Example: A 13% HST might be composed of 5% GST + 8% PST.

Product Tax Classification

Assign tax categories to products:

• Taxable: Standard rate applies
• Reduced Rate: Lower rate for essentials (food, medicine)
• Zero-Rated: Taxable at 0% (exports, basic groceries)
• Exempt: No tax (certain services, charities)

Tax Reporting

Your tax summary report shows:

• Total sales subject to each tax rate
• Tax collected by period
• Tax paid on purchases (input tax credit)
• Ready-to-file summaries

Regional Considerations

Different regions have different rules. Ensure you:

• Configure location-specific rates for multi-store operations
• Set up tax holidays or temporary rate changes
• Configure digital goods tax for e-commerce