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.
I am working with two taxes scenario 1, and need to show "Sub Total" ($105.00 as in the example) in Estimates and Invoices.
I cannot see subtotal shown by default, in any template.
Could you tell me please if there is a menu option anywhere to get this subtotal iten activated?
If not, could you tell me please the variable code name so I can add it through html?
Thanks a lot,
Carlos Perez
Hello Carlos,
Sorry for the inconvenience. If you are using a custom template, you need to add the placeholder for the subtotal. Please add the placeholder (Percentage symbol)InvoiceSubTotal(Percentage symbol) in your custom template and assign that template to your invoices, you can view the sub-totals. Please contact us at support at zohoinvoice dot com, in case you need further assistance.
Where specifically do you add the placeholder for the subtotals to show? I am not using a custom template.
@lilshoppa
Hi,
We are unable to understand your request, please send us more details on your request to support [at] zohoinvoice [dot] com. We would be glad to assist you.
Regards
Nagendra
Zoho Invoice Team
Help I don't know how to solve this problem
what if I have three taxes and one is negative?
In Italy professionals who has to invoice to companies have this typical scenario:
Net Price 1000
rivalsa INPS 4% +40 (additional insurance costs) not a tax but necessary
-----------------------------------------
First net total =1040
IVA 20% +208 (VAT)
________________________
TOTAL =1248
Ritenuta d'acconto 20% -208 customer antcipates this payment for IVA tax
________________________
TOTAL DUE =1040 what the customer owes to the professional
Hello,
We are yet to support more than two taxes in our system. Our forum post on this topic will provide more insight -
http://discussions.zoho.com/zohoforums?ftid=2266000000030456
We will update you as we progress. Thanks for your patience.
Regards
Nagendra
Thanks Nagendra. That's it!
If you rpvide a third tax for INPS it would be perfect, otherwise customers complain that the price is no what has been agreed upon, if this 4% is not declared explicitly but pre-calculated in the NET price.
BTW thank so much for addressing me. I'll propose Zoho line to my customers!
NBe