Setting up Taxes

An important part of managing a retail business is proper control of taxes.

Taxes can be managed in the Settings page.

There are three levels to taxes in RepairQ: Tax Groups, Tax Classes, and Tax Rates.

 

Tax Groups

The highest level of tax management in RepairQ is Tax Groups. Tax Groups are used to determine how taxes display on tickets, and reports are calculated based on each Tax Group.

To add a new Tax Group, click the New Tax Group button at the top right of the manage page. To edit an existing Tax Group, click the Edit button under the Actions column for the appropriate Tax Group.

The Tax Group Name is what displays on receipts or invoices. The description is an optional field that allow for extra information about the Tax Group to be tracked. The Change Log provides information about what staff member edited aspects of this Tax Group, and what information was updated.

Tax Classes

The second tier of tax management are Tax Classes. Tax classes define the tax type, tax rate, and which Tax Group to add the tax class amount into.

The following diagram demonstrates a popular Tax Group/Tax Class hierarchy. 

In this setup, we can set the different Tax Rates for Merchandise and Services appropriately, and create an easy-to-understand Tax Report since both Tax Classes will aggregate under the Sales Tax Group.

Similar to the Tax Groups page, the Add Tax Class button will create a New Tax Class. Clicking the Edit button for an existing Tax Class will edit the information for that Tax Class. 

For Tax Groups that have one child Tax Class, the name of the Tax Class can match the name of the parent Tax Group to avoid confusion (seen in the example below). 

The Type field controls whether this Tax Class is treated as a Tax Rate or Surcharge. The Percentage field is how taxes are calculated.

The third and final level of tax management in RepairQ are Tax Rates. Tax rates are where you apply Tax Classes (tax type and rate) to specific Item Types for specific Locations.

Changes to Tax Rates will NOT retroactively change the tax amounts saved for ticket items that exist before the change. However, when a ticket is edited after making a tax rate change, the tax amount will be recalculated according to the new settings.

 

The Add Tax Rate button will create a new Tax Rate. In the Actions column, the Edit button will edit the corresponding Tax Rate.

 

 The Delete button will remove the Tax Rate. This action cannot be undone.

The Item Type field controls what Item Type this Tax Rate is applied to. The Location controls what location the Tax Rate is applied to. The Tax Class controls what Tax Class this Tax Rate will apply to items of the chosen Item Type.

If an item type is flagged as “bundle-able” then there are additional tax rate settings.

With the "Tax when bundled" option turned on, when an item of the Item Type is bundled to another item, a tax will be applied based on this tax rate. The "Bundled tax basis" field controls whether this tax applied is based on the cost or price of the item. Check out this article for more information on how bundles are handled in RepairQ.

You can filter the Tax Rate page for certain Locations, Tax Class, and Item Type with the filters above the Tax Rate table. After the filer criteria is entered, the Apply button will show a list of Tax Rates that fit the filters.

TIP: When editing a location in the Settings, there is a “Tax Settings” tab that shows all the item types for that location, and which ones have a tax rate applied. This screen makes it easier to visualize where you might be missing tax rates for a location. There is also a “copy tax settings from another location” button that should make setting up new locations easier (when it comes to tax settings).

 

 

Sales/VAT Tax Resources:

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