Create new tax rates for use in your organization, or update the current tax rates and values.
What are tax rates?
Setup the tax rates to be available for use throughout Synergy. Tax rates are made up of one or many components. The tax components available are:
- Percent - Used for sales taxes like GST (good and services tax) or VAT (value added tax). Define a percentage of the total invoice value that will be used to calculate the tax value for each invoice / expense.
- Fixed - Used for local import or export tariff's, or local municipality charges. e.g. Apply a tariff of $100 on any sales invoices with a value greater than $2000.
- Exempt - Used to create a tax free rule, to enter on tax exempt project stages or expenses. e.g. Local taxes may not charged when sending the invoice to an overseas contact.
Effective dates are used to vary the tax rate percentage / fixed values and start the change from a certain date in the future. Changing the tax rate can be required if the local governments increase / decrease the tax value that is required on sales or purchases in your region. Each Synergy organization includes a 'tax free' rate, and this rate is locked and cannot be deleted.
- Project stages - each stage is assigned a tax rate to be used for invoicing the stage work to the client. The stage level tax controls the total invoice tax value.
- Project invoices - display the tax rate description or code to the client on the invoice document.
- Staff expenses - your staff can select the tax rates when entering their travel expense from site visits, work travel, attending off-site training sessions etc. This controls the total expense value that the staff member is claiming to be reimbursed for.
- Supplier bills - enter the bill and disburse against the project using the required tax rate.
Why use tax rates?
Configure the tax rates and component(s) used for the rate that will be applied when invoicing projects, and entering staff expenses / supplier bills.
Actions available
Use the tax rates section to setup what tax rule is the default item applied to each project stage. By default each Synergy organization will be created with a 'tax free' rule. For the countries listed below a 'tax applicable' rate is also created with the current percentage GST / VAT used in these regions. The 'tax applicable' rule is automatically created based on the country entered when setting up the new Synergy organization, and is setup as the default tax code when available.
Tax name | Tax component value | Country | Component | Example |
---|---|---|---|---|
Tax Applicable (GST) | 10% | Australia | Percent |
Invoice total: $100 Tax: $10 |
Tax Applicable (GST) | 15% | New Zealand | Percent |
Invoice total: $100 Tax: $15 Total inc tax: $115 |
Standard VAT | 20% | United Kingdom | Percent |
Invoice total: $100 Tax: $20 Total inc tax: $120 |
Reduced VAT | 5% | United Kingdom | Percent |
Invoice total: $100 Tax: $5 Total inc tax: $105 |
Zero | 0% | United Kingdom | Percent |
Invoice total: $100 Tax: $0 Total inc tax: $100 |
Exempt | 0% | United Kingdom |
Exception For all date ranges |
Invoice total: $100 Tax: $0 Total inc tax: $100 |
Tax Free | 0% | All Regions except the UK |
Exception For all date ranges |
Invoice total: $100 Tax: $0 Total inc tax: $100 |
Export tariff |
Min $700 - Max (unlimited) Fixed value $75.00 |
Example only | Fixed |
Invoice total: $1000 Tax: $75 Total inc tax: $1075 |
Municipality charge |
Min $0, Max (unlimited) Fixed value $250.00 |
Example only | Fixed |
Invoice total: $1000 Tax: $250 Total inc tax: $1250 |
State and council tax |
5.00% state - Component 1 2.50% local council - Component 2 |
Example only |
Multiple percent components Compound = no |
Invoice total: $100 Tax total: $7.50 Total inc tax: $107.50 |
USA Sales Tax New York City (8.875% tax) |
4.00% New York State - Component 1 0.00% New York County - Component 2 4.50% New York City - Component 3 0.375% District Tax - Component 4 |
USA example 1 |
Multiple percent components Compound = no |
Invoice total: $100 Tax total: $8.86 Total inc tax: $108.86 |
USA Sales Tax Virginia (5.300%) |
4.30% New York State - Component 1 1.00% New York County - Component 2 0.00% New York City - Component 3 0.00% District Tax - Component 4 |
USA example 2 |
Multiple percent components Compound = no |
Invoice total: $100 Tax total: $5.30 Total inc tax: $105.30 |
USA Sales Tax Los Angeles City (9.25% tax) |
6.25% CA State - Component 1 1.00% Los Angeles County - Component 2 0.00% Los Angeles City - Component 3 2.00% District Tax - Component 4 |
USA example 3 |
Multiple percent components Compound = no |
Invoice total: $100 Tax total: $8.86 Total inc tax: $108.86 |
HST tax Ontario State 13% Canada HST tax (Harmonized sales tax) varies by state |
13% HST (Ontario state) - Component 1 | Canada example 1 | Percent |
Invoice total: $100 Tax total: $13.00 Total inc tax: $113.00 |
GST and PST tax Monitoba State - 13% GST (goods and services) and PST (provincial sales tax) tax rates vary by state |
5% GST - Component 1 8% GST - Component 2 |
Canada example 2 |
Multiple percent components Compound = no |
Invoice total: $100 Tax total: $13.00 Total inc tax: $113.00 |
Stacked compound sales tax |
5% GST - Component 1 7% PST (compounded / stacked) - Component 2 |
Canada example 3 |
Multiple percent components Compound = Yes on component 2 |
Invoice total: $100 Tax 1 total: $5.00 Sub total: $108.86 Tax 2 total: $7.62 Total inc taxes: $116.48 |
Determine what tax component is required for the tax rate in your country, state, or region. The components allowed are a 'percentage' of the invoice value, a 'fixed' value when above a minimum sales value, or 'exempt' for tax free billing. Which option required will depend on the country you are operating from, and the country you are selling the goods. Please contact your accountant for any advise on the required sales taxes in your region.
- Go to: Settings > Financial > Tax.
- Click the 'add' button in the top right corner.
- Type the tax 'code'.
- Type a 'description' for the tax rate.
- (Optional) Mark the tax rate as the default option. This will shown by default on all project stages, supplier bills, and staff expenses entered in Synergy. The other tax rates are available in the drop down list.
- Setup the tax component by
- Type a name for this tax component. e.g. GST or state tax
- Enter the rate value as a percentage (%).
- (Optional) Add another component to add an additional tax percentage, e.g. city or council tax.
- Save and close.
Tips:
- Only the tax code and description is displayed on invoices to your clients.
- If using Accounting add-ons then this tax code should be the same as your accounting system. e.g. the VAT or GST code found in your accounting system like MYOB AccountRight Live, Xero, or QuickBooks Online.
- If a fixed value is required then save the rate without any components, and enter the fixed value on the next step.
- Go to: Settings > Financial > Tax.
- Click the 'add' button in the top right corner.
- Type the tax 'code'.
- Type a 'description' for the tax rate.
- Save.
- In the rules table shown on the 'tax' edit page complete the following steps:
- Click the row action button on the 'percent' rule that was auto added and select 'delete'.
- Click the 'advanced rates' button and select the 'add fixed value' option.
- Type the 'code' and 'description' to be used for the tax component. This is normally the same code shown at the top of the screen in tax rule.
- Type the 'minimum value' from when this tax tariff will be applied. e.g. All sales over $100 (minimum value) will get this tax.
- Type a 'maximum value' where applicable. If $0 is entered then this is applied to anything over the minimum value, or if you enter $1000 then the tax is not applied to any sales over that value.
- Type the 'value' to be applied as a fixed tax value to an invoice each time this tax code is applied.
- Check that the 'effective from' date is correct, or click into the field and change it from the calendar.
- Define an 'effective to' date if the tax rate is only to be applied for a limited date range.
- Save.
- Save and close the tax rate.
Tips:
- Only the tax code and description is displayed on invoices to your clients.
- If using Accounting add-ons then this tax code should be the same as your accounting system. e.g. the VAT or GST code found in your accounting system like MYOB AccountRight Live, Xero, or QuickBooks Online.
- Go to: Settings > Financial > Tax.
- Click the 'add' button in the top right corner.
- Type the tax 'code'.
- Type a 'description' for the tax rate.
- Save.
- In the rules table shown on the 'tax' edit page complete the following steps:
- Click the row action button on the 'percent' rule that was auto added and select 'delete'.
- Click the 'Advanced rates' button and select the 'add exception' option.
- Type the 'code' and 'description' to be used for the tax component. This is normally the same code shown at the top of the screen in tax rule.
- Check that the 'effective from' date is correct, or click into the field and change it from the calendar.
- Define an 'effective to' date if the tax line rule is only to be applied for a limited date range.
- Save.
- Save and close the tax rate.
Tips:
- The tax code and description is displayed on invoices to your clients.
- If using Accounting add-ons then this tax code should be the same as your accounting system. e.g. the VAT or GST code found in your accounting system like MYOB AccountRight Live, Xero, or QuickBooks Online.
Mark the tax rate as inactive to stop the tax code/rate from being used in the future. Inactive tax rates are removed from drop-down lists but are still kept as applied to any existing items. When a tax rate has been used on a project stage or expense it cannot be deleted. Change a tax rate to be inactive by:
- Go to: Settings > Financial > Tax, and use one of the following methods:
- Single row - Click the row action button, and select 'edit'. Uncheck the 'active' box, and then save and close.
- Multi-row - In the list check the box(es) on the left of the name column, and then click the multi rows action button and choose the 'set as not active' option.
- The list refreshes and only the active items remain in the list.
Tips:
- Use the list filter 'all' to find both active and inactive tax rates.
- A strike-out style is applied to rows that are inactive.
- If you delete all components within a rate, then the rate is automatically marked as 'inactive'. A tax rate must have at least one component to be used in Synergy.
Search
When a large number of items exist to use the search or filter options to limit the number of rows shown in the list.
Search by clicking the search button and typing the keyword into the search box. To return to seeing all items in the list click the clear button in the search bar.
Filter
Filter the list by selecting the search button. See the available filters by clicking the word 'active'. Select a filter from the drop down list and click the search button to apply the filter. The filter options are:
- Active - the default list filter that shows the items that can be used (seen in drop down lists).
- Inactive - see the items that can no longer be used, and are only shown when still linked to existing records.
- All - see both active and inactive items in the list.
Tip: Return to the default view by choosing the clear button in the search bar.
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