In this article, we will explain you more about how to add/create a group tax so that you can assign it to an item in an Invoice.
When you should create / use a Group Tax?
A group tax should be created for following reasons:
- To apply multiple primary taxes to an item in an Invoice.
- To apply a single primary tax or multiple primary taxes with a compound tax to an item in an Invoice.
How is group tax calculated?
Following example shows how group tax is calculated. Example contains a Group Tax with two primary taxes and one compound tax.
Example : Item Price = $1000
CGST – Primary Tax : 10% = $100 ( 1000 * (10 / 100))
SGST – Primary Tax : 12% = $120 (1000 * (12 / 100))
Compound Tax 5% : (1000 + 100 + 120) * (5 / 100) = $61
Total Tax : 27%
Effective Tax : 28.1% = $281 ($100 + $120 + $61)
iOS and Android
- From side menu tap / click on Taxes under Settings
- Before adding a group tax you need to create primary taxes if you have not already created.
- Tap / Click on option available at top right corner or tap / click on Add tax button.
- Tap / click on Add Group Tax.
- Enter group tax title as per your choice.
- You will see a list of primary taxes and compound taxes that you have added/created.
- Select primary tax / taxes or Primary tax / taxes with a compound tax that you want to group together so as to apply it to an item in Invoice.
- Tap / Click on Save.
Web
- From side menu click on Settings.
- Click on Taxes.
- Before adding a group tax you need to create primary taxes if you have not already created.
- Click on Add Group Taxes.
- Enter group tax title as per your choice.
- You will see a list of primary taxes and compound taxes that you have added / created.
- Select primary tax / taxes or Primary tax / taxes with a compound tax that you want to group together so as to apply it to an item in Invoice.
- Click on Save.