The tax rate remains fixed after creation for two critical reasons:
- System limitation: The platform does not support tax rate modifications after initial setup
- Financial integrity: Since taxes are typically linked to multiple income and expense entries, changing rates retroactively could cause significant accounting discrepancies
Best Practice: Double-check your tax rates before creation, as they cannot be modified later.
Once you create a tax, it is not possible to change the recoverable or non-recoverable option. So therefore, you should be careful when making this choice.
You can easily deactivate or activate a tax by following these steps:
1. Navigate to the Taxes page.
2. In the rightmost column of each tax, click on the Edit symbol.
3. A pop-up window will appear.
4. At the bottom of the window, locate the ‘Is Active’ option.
- To activate the tax, check the box.
- To deactivate the tax, uncheck the box.
5. Save your changes to update the tax status.
This allows you to manage your taxes efficiently based on your requirements.
Adding new taxes is a simple process and can be done directly from the Taxes page. Follow these steps to set up a new tax:
1. Locate the “Add New Tax” button in the top-left corner of the Taxes page and click on it.
2. A new page will appear where you can input the necessary details:
- Tax Name: Provide a name for the tax.
- Rate: Enter the applicable tax rate (in percentage).
- Recovery Option: Specify if applicable.
3. Once all fields are completed, click “Add” to save the new tax.
This ensures your tax settings are updated and ready for use.