Creating Tax Rules
This article will guide you on how to create Tax Rules for use with Sales Taxes
TAKU Retail's feature for creating tax rules allows you to accurately apply taxes to your sales. This guide will show you how to step up a tax rule to make tax exemptions, offer tax rebates, and apply taxes.
From the main screen, go to Settings > Business Settings > Taxes. Once the Tax screen opens, make sure to select the "Rules" tab then click the "Add Tax" (Add) button, the system will open the "Tax Rule Details" screen.
Once the the "Tax Rule Details" screen opens, you will need to enter the information that is required and other information that will be required from under the following sections: General Information, Geography, Time Limits, Tax Categories and Others.
Tax Name: This is name of the tax, you can select from the list of Sales Taxes created previously.
Tax Rate: This is the percentage used for the tax, this is the percentage specified by the Tax Agency that taxes are reported to.
Effective Date: This is the date that the tax will be active from.
End Date: This is the date that the tax will active until (If this tax does not expire, select the last possible date).
Country: This is the country that the tax agency applies for.
Postal/Zip Codes: In here we can specify the zip code(s) or Postal Code(s) that this tax will apply to, this will be used if certain tax applies to a specific Postal/Zip Code(s) range.
Regions: This is where we select the regions this tax will apply to.
Cities: This is where we select the cities this tax will apply to. This will be used if a certain tax applies to a specific city or cities.
Time-Based: This option will activate the Starting and Ending Time fields.
Starting Time: In here we can specify the Starting Time (Hours and Minutes) for a tax to take effect.
Ending Time: In here we can specify the Ending Time (Hours and Minutes) for a tax to end.
Account Categories: This option will allow to use any categories that you have created for customer accounts.
Inventory Categories: This option will allow to use any categories that you have created for inventory products.
Tax Calculation Type: This option will allow you to choose from 3 different option: Positive, Rebate and Exempt.
- POSITIVE is used by default when setting up a tax.
- REBATE is used when applying rebates to certain taxes (Please check with Tax Agency that taxes are reported to).
- EXEMPT is used when exemptions need to be made with taxes (Please check with Tax Agency that taxes are reported to).
Tax Rule Priority: This option will allow you to set priorities for different taxes, based on the number you enter here, where 1 represents the tax that will have the first "Priority", 2 will be the tax with lower priority than the tax created with "Priority" 1 but higher than a tax with "priority" 3, etc.
The System allows you to use multiple taxes with the same priority, therefore it is very important that you set up taxes priorities with full knowledge of all the other taxes that have been setup previously, in the case of 2 taxes conflicting due to the priority, the system will use the tax that was created first.
Once you have entered the information that is needed, you can click on the "Save" button located at the top right corner, to save all the tax settings that you have entered.
The System will display a "Service Message", to let you know that all tax settings have been saved.