Settings regarding VAT, taxes, fees, etc.
You can edit your VAT settings in your company settings.
1. Click on your company name in the top menu. Select Company Settings from the drop-down menu.
2. Click the Go To button next to the heading VAT,sales* *taxes,fees,**etc. to define VAT rates and specify when to apply them.
3. Click Add New in the top right corner
4. Add a name eg. ‘DK VAT’
5. Enter the rate for VAT. If it is Danish VAT, the rate is 25%
6. In the field Calculation Base, you can choose whether the calculation basis should include other taxes and fees or whether the tax should be calculated on the basis of Subtotal, the value of goods and services on the order.
7. Indicate whether it is an expense that will be covered at a later date (eg Danish VAT) in the field Recoverable.
8. The Weight field indicates how high the rate is placed on documents. Click Save to create.
9. Once you have created and defined a VAT, it will appear in the list. By clicking on the Rules button next to a given VAT, it is possible to set up rules for when a given VAT rate is to be applied.
10. You can set up a rule depending on Document type, Country, SKU or Line category. In the field SKU is, the expense can be attached to the specific SKU. Regarding the Danish VAT it is relevant to set up a rule related to Partners located in Denmark.
11. You can link the tax to a partner via tags in the field Partner has tag. In the same way you can link the tax to a SKU or a service line in the fields SKU has Tag or Line has Tag.
12. If ou select Yes in the field Negate rule, the tax will automatically be applied in cases where the settings of the rule are not valid. An example could be if the rule is reversed to document type Invoice. The reversed rule will then be applied to other documents than invoices. Another example is for companies that are VAT exempt, eg certain institutions and airlines. Here, the rule can be reversed so that airlines are not invoiced for VAT. Then the partner tag will have to be linked to the partner.
13. You can apply several rules by clicking Add empty rule. Remember to click Save rules.