Money
Tax rates
A shop sets a default tax rate and whether prices include it. Any item can override both with its own rate and its own inclusive setting. Tax is worked out on sales, invoices and quotations, and shown broken out on the document.
What it does
Most shops need one rate. Some need two, because a category of goods is taxed differently or not at all.
The shop default covers the common case. Set it once and every item follows it.
An item that is taxed differently carries its own rate, and its own answer to whether the price already includes the tax.
The distinction matters more than it looks. A price that includes tax and one that excludes it are different amounts on the same number, and getting it wrong is a rounding error repeated on every line.
The breakdown is shown on invoices and receipts, so a customer who needs to reclaim the tax can see it.
Every capability
| Shop default | One rate, and whether prices include it |
|---|---|
| Per item | Its own rate, overriding the default |
| Inclusive | Set per item as well as per shop |
| Applies to | Sales, invoices and quotations |
| Documents | Tax stored per document, and shown broken out |
| Services | Carry a rate like any other line |
| Zero rated | Set an item's rate to zero |
Questions
Can I run without tax at all?
Yes. Leave the shop default empty and nothing is added.
What does tax inclusive mean?
That the price shown already contains the tax, so the tax is worked back out of it rather than added on top.
Does Fixmo file my tax return?
No. It records what tax was charged and shows it on documents and reports. Filing is between you and your tax authority.