Tax is the tax to be charged (for example, VAT 20%). Tax is defined by Tax ID, Tax Name and Rate.
To add a tax:
- In OA Billing control panel, go to System > Settings > Taxation > Taxes.
- Click Add New Tax. The adding new tax dialog is displayed. Fill out the form:
- Enter a tax ID into the Tax ID field. For example, VAT.
- Enter a tax name into the Tax Name field. For example, VAT.
- Define a way the tax is to be calculated in by selecting option from the Calculation Level group. Two options are available:
- Level 1 means that tax is calculated as a percent from the service (resource) price only;
- Level 2 means that tax is calculated as a percent from the service (resource) price plus all the Level 1 taxes. For example, Tax_level_2 = % of (Item_Amount + Tax_Level_1 + Another_Tax_Level_1 + ...)
- Selecting one way or another exclusively depends on tax authorities of customer's country.
- Define whether the tax is to be calculated per entire document (invoice) or per each item of the document particularly by selecting the respective option from the Calculation Type group. Since the taxes' resulting amount is rounded, these calculation types can give different resulting value of the tax. Selecting one way or another is also exclusively depends on tax authorities of customer's country.
- Select whether the tax amount is to be extracted from the service price (rather then added to it) by selection of the Extract Tax Amount from Item Amount option.
- Input a tax rate into the Tax Rate field. The fractional part format is "10.00". Always use dot as a decimal separator.
- Input a free-form description of the tax into the Description field.
Note: OA Billing supports 4 decimal places in tax rates. This allows to work correctly with tax rates that have more than two digits after decimal point: for example, tax legislation in Canada sets 9.975% tax rate for the Quebec province.
If a longer fraction is specified for a tax rate, it will be rounded to 4 decimal places. - Click Add to finish adding new tax.