Defining Complex Sales Tax


This Solution describes how to set up and collect complicated taxes, such as value added tax. (VAT) or compound taxes. You can set up taxes so that they incorporate various local and provincial taxes. (5173)







Big Business supports VAT (Value Added Tax) and other complex sales tax structures. You can define and use sales tax rates that combine multiple individual taxes--local, provincial, and federal, for example. To define complex sales tax structures, choose Show List from the Tax Status QuickPop in the History tab of a Customer Card. To add additional taxes, click on the plus button and enter the appropriate Sales Tax name, Account Code, and Tax Rate. To add more than one tax, click on the plus button and insert additional Account Codes and Tax Rates. If you click on the Calculate First checkbox for a tax, the tax will be calculated before calculating additional taxes (compound). If any of the individual taxes use the Calculate First option, the effective tax rate will be calculated and displayed.

The breakdown of compound taxes is automatically included in the Notes field on built-in Invoice forms.

To define complex sales tax structures:
1. Choose Show List from the Tax Status QuickPop list in the History tab of a Customer Card.
2. Click the Add button.
3. In the Add Sales Tax Item dialog box, define the tax, then click the OK button.

Taxes which use the Calculate First option are itemized in the Notes for an Invoice.



Related:

  Chapter 77 Sales Taxes

Return to Help