Setting up
tax details
The product
or service that you sell may attract taxes; you can specify all those
taxes in tax settings.
Adding taxes
in the settings page make the process of adding the product/service
very simple. The taxes added here are shown in a drop down while adding
a product/service; all you have to do is select the appropriate tax
that applies to that product or service. This saves you from entering
the tax details again and again for each and every product.
To add a new
tax :
- Click on the "Settings" at the top right corner.
- Click on the "Tax settings" link on the left side.
- Fill in the details for the fields tabulated below.
- To add a new row in the table you can use the "Add New Tax" link.
- Use "X" at the left of the table to delete the rows.
- Click on the "Save" button to save the changes; alternatively you
can click on "Save & Next" to save and proceed with the next
setting.
| Field Name |
Description |
| Tax
ID |
Identifier for the tax that you have to pay. |
| Percentage |
The tax percentage. |
| Apply On |
This field is used to specify whether the tax is a
compound/stacked tax (eg: QST, PST). If the tax is a compound tax
select "Item Amount + Tax1" as value for this field and specify this
tax as "Tax2" while associating it to the item or else select "Item
Amount" as value for this field. For details refer the example below
|
Example:
In certain
provinces you are required to charge two taxes, the best example is GST
(Goods and Services Tax) and PST (Provincial Sales Tax).
GST is
generally charged on the selling price before PST, whereas PST
depending on the province may be charged either on the selling price or
on the total of selling price plus GST. Now you can handle both these
scenarios easily in Zoho Invoice.
Scenario1: PST is charged on
the selling price + GST
| Item/Service Price |
$100.00 |
| GST @ 5% |
$5.00 |
| Sub Total |
$105.00 |
| PST @ 7% |
$7.35 |
| Total |
$112.35 |
To achieve
the above scenario, add two taxes (PST & GST) in the tax settings,
for the "Apply On" field select "Item
Amount" for GST and "Item
Amount + Tax1" for PST and associate them to the item for which
the tax has to be calculated. While associating the taxes to the item
specify GST as Tax1 and PST as Tax2.
Scenario2: PST is charged on the
selling price
| Item/Service
Price |
$100.00
|
| GST @ 5% |
$5.00
|
| PST @ 7%
|
$7.00
|
| Total
|
$112.00
|
To achieve
the above scenario, add two taxes (PST & GST) in the tax settings,
for the "Apply On" field
select "Item Amount" for both
these taxes and associate them to the item as Tax1 & Tax2 for which
the tax has to be calculated.
Hope this
page was helpful, feel free to post your comments about this page. You
can also -
I'm sorry, but I find the explanation of how to set up a compound tax amount nearly incomprehensible. For example, the directions say, "While associating the taxes to the item specify GST as Tax1 and PST as Tax2."
Associating how? What item? Specify where?
Zoho has some of the worst help directions I've ever seen.
Hello,
Sorry for not being clear in our help docs.
To get more details on this, please refer the following blog :
http://blogs.zoho.com/general/support-for-stacked-or-compound-taxes-in-invoices/
Hope this helps you. Please get back to us in case of any queries.