In most Accounting systems you can define a number of Tax Rates. Invitbox facilitates this in a variety of ways depending upon how we connect with your Accounting software.
Within invitbox, you can manage tax codes and rates on an account level via: Admin > Tax Rates The tax rate set here will be the default for all taxable components except where there is a default rate set for a particular supplier.
You can set a specific tax code to a supplier from within the supplier profile within invitbox. This will override the account default tax rate for this supplier only.
On the Account Tax codes screen you can view all your Tax Codes at account level once they have been imported. Please set 2 default Tax Codes; one for items you receive that are taxed by the supplier/vendor, and one for items you receive that are not taxed. We need your default tax codes set so we can set the tax amounts for your bills.
This image below shows how you should have your tax rates ticked in a typical setup. One for GST Free and one for GST on expenses. Do Not put 2 ticks on the one line.
Depending on your country or on the make up of your company, the tax rate you are charged by a supplier/vendor may not be the same as the tax rate you claim.....
The tax you are charged DOES NOT equal the tax you claim back.
For organisations such as charities in the UK, or financial institutions in Australia (not an exhaustive list) the tax you are charged may not always equal the tax you can claim back (if any).
In this situation you will need to add a Supplier Tax Rate to the required Tax Code in the list. You can do this by highlighting the Tax Rate, and clicking edit to view this screen:
In this scenario, the Tax Rate in your Accountancy software is 0%, but suppliers/vendors charge you 10% tax.
invitbox will use the supplier's rate to perform calculations on the data you see in the InTray etc. so it corresponds with the supplier bill. This will also assist with your validation and approval process as well as allowing us to ensure the supplier/vendor has not overcharged you.
However, when you export your data invitbox will use the rate from your accountancy software so the data there will reflect your own rates as expected.
By way of example, lets say the supplier/vendor has billed you $120 plus 10% sales tax. Bill total $132. In invitbox, we will display the value of the row as $120 plus tax. But what we need to send the accountancy software is that the cost of the row is actually $132, i.e. there is no tax to be claimed. So while invitbox will display $120 (taxable at 10%), what will be sent to your software will be $132 (taxable at 0%).
Xero, QBO, MYOB ARL & Saasu
Using invitbox & Xero/QBO/ARL/Saasu prior to 1st Aug 2013?
Until now invitbox has always used the default Tax Codes that have been provided with your system. If you now wish to import all the Tax Codes from your system simply go to Admin > Tax Codes > edit and import from your system. Once you do so you will be able to set your default tax code for taxable, and for non-taxable items.
New to invitbox & Xero/QBO/ARL/Saasu from 1st Aug 2013?
When you choose your system as your Accounting software via the Admin tab, and then connect to your system, invitbox will bring back all of your Tax Codes automatically as part of the initial synchronisation, allowing you to set your defaults. Any new Tax Codes you create in your system after initial synchronisation will need to imported from your system via Admin > Tax Codes > edit and import from your system.
Note - if you delete a Tax Code from your accountancy system you will need to re sync these with Invitbox again, just go to invitbox Admin tab> Tax Codes > edit and import from your system. This will refresh the selection of Tax Codes invitbox holds, removing the deleted one.
MYOB desktop, Reckon Accounts, Sun Systems & Other
For Accountancy Software suites that invitbox connects to via manual file import and export, you need to maintain Tax Codes manually, either by entering them manually, as below, or by uploading a file containing your tax codes.
To manually enter a Tax Code Admin > Tax Codes > Edit >
To upload a file with your Tax Codes Admin > Tax Codes > Edit >
Your file needs to be saved as a csv or txt file, and it may contain a header column if you wish. It must be contain the data in the following sequence, and each field is mandatory.
Column 1 - Code
Column 2 - Name of Tax Code/Description
Column 3 - Tax rate as a number (so 10% would be 10, not 0.1, and it should not contain the % symbol)
You will be asked whether your upload file contains a header row or not so please check this prior to uploading.
Multiple Tax Codes are not applicable to Adept because Adept's import routine does not include details of tax codes, but simply the $ value of tax.
What does this mean in real terms?
Example 1 - Countries with multiple tax rates across different sectors
In Ireland (as with a lot of other countries) different services attract different levels of VAT (restaurant meals 13.5%, agriculture sector 5.2%, standard rate 23% etc). These changes to invitbox will allow an Irish client using invitbox to define that an expense row on a bill has been taxed at a certain rate, as opposed to just saying it is taxed.
Example 2 - A purchase that is to be treated as a Capital addition as opposed to as an expense
In Australia, for example, when you are completing a BAS return you are asked to define those purchases which are capital acquisitions. To do so, you can simply tell your accountancy that the purchase was a capital acquisition. These changes to invitbox will allow you to identify the item as such within invitbox, which will then tell your accountancy software of the fact accordingly upon export.
For more detailed information on these changes, look to the FAQ section within your accountancy software section of this help.