Please note that this setup is for old taxes like VAT, Service Tax. For setting up GST check here – GST Setup
If you required to charge any tax such as VAT, Service Tax etc on your sales then you can use Tax Code to keep track of these indirect taxes. You can create new tax code from two places in Refinebooks.
- By using New + option available in header bar.
- Using Add Tax Code button available in Taxes-> Setup in left side menu.
Once you select the option of adding tax code, it will open a new window where you are required to enter various details for the tax code.
- Tax Code
Enter the name of the Tax Code which you want to use such as Input VAT 12% or Output VAT 14% or ST – 14% or CST -2%. The name should specify the tax type as well as tax rate so you can easily remember which tax code should apply on your particular sale or purchase.
- Tax Rate
Enter the tax rate for the tax code. You can enter tax rate upto 3 decimal.
Select the type of the tax code.
Input Tax – If you pay this tax on your purchase then the tax type should be Input Tax. Input tax is available every where other than sales invoice.Output Tax – If you collect this tax on your sales then the tax type should be Output Tax. Output is available every where other than purchase invoice.Other – You can select Other for tax type such as CST. Tax having Other is available every where even in Sales invoice as well as in purchase invoice.
Select account in which the tax entry should post. Only accounts in the nature of Duties & Taxes are available here.
- Click on Save.