Adding new tax rate for the existing tax may be needed in cases when the tax rate is going to change starting from a certain date. In other words, a tax can have several tax rates, with each of them having own effective period.
To add a new tax rate:
- In OA Billing control panel, go to System > Settings > Taxation > Taxes.
- Select the required tax and click Add New Tax Rate.
- Enter the tax rate value and the Effective since date for it.
- Click Add to finish.
Note: Only one tax rate can be effective at the time.
You can also make use of the Tax is not Effective setting that defines whether the tax is used for tax calculations or not according to the following algorithm:
- If it is not set (false) with any value set in the Tax Rate field, then the tax rate will be applied to an item during taxation calculation.
- If it is not set (false) with zero value set in the Tax Rate field, then zero tax will be applied to an item.
- If it is set (true), then the tax will not be used for taxation calculation.
This ability can be useful in situations when a service provider knows about upcoming legislation changes and wants to prepare OA Billing configuration in advance. For example, starting from 1 January 2018 the existing tax of 20% will not be effective. Hence, two tax rates can be configured:
- Tax rate of 20%, “Effective since” = blank, “Tax is not Effective” = false.
- Tax rate of 20%, “Effective since” = 01-01-2018, “Tax is not Effective” = true.