Tax Rates are configured in Setup / Finance / Taxes / Tax Rates
Tax rates represent individual taxes (a sales tax, provincial tax, service/hardware specific tax, etc.). The tax rates you setup on this screen are added to tax codes in order to tax transactions. When a charge is applied to an account (e.g. when an account-service is billed) the system checks to see if a tax code is applicable to the charge (see the tax codes help for details on how tax codes are selected), at that point the tax rates configured on the selected tax code are applied to the transaction charge.
Note: you do not need to configure tax rates if you are using a third party tax integration (e.g. AvaTax). Charges passed to a third party solution will determine the appropriate tax rates to apply. Tax rates are only applicable when using the native LogiSense tax vendor to apply taxes.
General ledger codes need to be setup if you wish to assign GL codes to tax rates
The Tax Rates panel on the left of this screen allows you to select existing rates to view and edit on the Edit Tax Rate panel to the right. Actions are also available in this panel which are shown as icons above the Filter text box. The available actions are described below.
Deletes the tax rate if not in use
Adds a new tax rate
The information in this panel reflects the currently selected tax rate. From here you can change rate details (fields will display a red left border if a value is required and purple text if the field is read-only and cannot be modified).
Tax Rate Fields:
Name: a unique name for the tax
Display Name: a friendly name that can be used on reports or invoices. E.g. the tax 'Name' for internal purposes could be set as 'Value Added Tax' and the display name set as 'VAT' for display on web-portals or invoices
Rate: the tax rate. E.g. 0.015 would be a 1.5% tax rate
GL Code: allows you to associate a general ledger code with the tax rate
Tax Category: tax categories that can be set via API and used to organize taxes that are presented on invoices
Under the Tax Rates heading on the left click the icon
Under the Add Tax Rate heading on the right specify the tax rate details described above
Under the Tax Rates heading on the left click the tax rate you wish to edit
Under the Edit Tax Rates heading on the right modify the tax rate details described above
Click Save when finished making changes
Under the Tax Rates heading on the left select the tax rate you wish to delete
Under the same Tax Rates heading click the icon
On the confirmation dialog that appears select Yes