Tax Management

The Tax Management module handles all aspects of tax configuration, calculation, reporting, and compliance for sales tax, VAT, GST, and other tax types.

Overview

Tax Management enables you to:

• Configure tax authorities
• Manage tax groups and rates
• Handle tax exemptions
• Generate tax reports
• Reconcile tax accounts
• Ensure compliance

Accessing Tax Management

Navigate to Tax Management from the Finance menu to access tax features.

Module Features

Tax Authorities

Configure tax collection authorities and their requirements for proper remittance.

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Tax Groups

Organize products and services into tax groups for consistent tax application.

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Tax Rates

Define and manage tax rates by jurisdiction, product type, and customer category.

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Tax Exemptions

Manage tax-exempt customers, certificates, and exemption documentation.

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Tax Reports

Generate comprehensive tax reports for filing and compliance requirements.

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Tax Reconciliation

Reconcile tax collected with tax payable and identify discrepancies.

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Key Concepts

Tax Types

Type	Description
Sales Tax	US state/local taxes
VAT	Value Added Tax
GST	Goods & Services Tax
Use Tax	Tax on untaxed purchases
Excise Tax	Special product taxes

Tax Calculation

Tax Calculation Process:

1. Determine Ship-To Address
   └─ Identifies tax jurisdiction

2. Identify Product Tax Group
   └─ Determines applicable tax type

3. Check Customer Exemptions
   └─ Apply exemptions if valid

4. Look Up Tax Rate
   └─ Based on jurisdiction + product

5. Calculate Tax Amount
   └─ Tax = Taxable Amount × Rate

6. Apply Rounding Rules
   └─ Per jurisdiction requirements

Tax Jurisdictions

Level	Example
Country	USA, Canada
State/Province	California, Ontario
County	Los Angeles County
City	Los Angeles
District	Special tax districts

Quick Start

Setting Up Basic Tax

1. Configure Tax Authorities

   • Define collection authorities
   • Set filing frequencies
   • Configure remittance accounts

2. Create Tax Groups

   • Group similar products
   • Set default tax treatment
   • Map to authority requirements

3. Set Up Tax Rates

   • Define rates by jurisdiction
   • Set effective dates
   • Configure rate combinations

4. Handle Exemptions

   • Add exempt customers
   • Upload certificates
   • Set expiration tracking

Common Tax Scenarios

Standard Sales Tax:

Sale in California:
├─ State Tax: 7.25%
├─ County Tax: 0.25%
├─ City Tax: 0.75%
├─ District Tax: 0.50%
└─ Total: 8.75%

VAT Calculation:

UK VAT Example:
├─ Net Amount: £100.00
├─ VAT Rate: 20%
├─ VAT Amount: £20.00
└─ Gross Amount: £120.00

Multi-Jurisdiction:

Interstate Sale:
├─ Origin: Texas (no destination sourcing)
├─ Destination: California
├─ Applicable: California rates
└─ Nexus: Required

Integration Points

Connected Modules

Module	Integration
Sales	Order tax calculation
Invoicing	Invoice tax
Finance	Tax accounts
Purchasing	Input tax credits
Reports	Tax reporting

External Integrations

• Tax calculation services
• Filing services
• Certificate management
• Rate databases

Best Practices

Configuration

• Complete setup before transactions
• Verify rates regularly
• Keep certificates current
• Document exemptions

Compliance

• File on time
• Maintain records
• Regular reconciliation
• Audit preparation

Monitoring

• Track rate changes
• Monitor nexus thresholds
• Review exemptions
• Check calculations

Documentation

• Keep certificates organized
• Document decisions
• Maintain audit trail
• Archive filings

Configuration

Navigate to Settings → Tax Management for:

• Authorities - Tax authority setup
• Groups - Product groupings
• Rates - Rate configuration
• Exemptions - Exemption rules
• Filing - Filing settings
• Integration - External services

Getting Help

• Tax Authorities - Configure authorities
• Tax Groups - Manage product groups
• Tax Rates - Set up rates
• Tax Exemptions - Handle exemptions
• Tax Reports - Generate reports
• Tax Reconciliation - Reconcile taxes