Tax rates (VAT) and tax groups

Adding a tax rate

Settings › Tax Rates › Add: name (e.g. "VAT 16%") and rate (16). Save.

Tax groups combine several rates into one, for example VAT plus a levy.

Where tax applies

• Product tax: on each product (Applicable Tax), with prices inclusive or exclusive of tax.
• Order tax: on the whole sale, set by default under Settings › Business Settings › Sale › Default Sale Tax and changeable on each sale.

Use one or the other. Using both taxes items twice.

Not VAT registered?

1. Set Default Sale Tax to None (Business Settings › Sale).
2. Leave Applicable Tax empty on products.
3. Optionally untick Enable inline tax in purchase and sell (Business Settings › Tax).

Tax on invoices and reports

Add your tax number (e.g. KRA PIN) under Business Settings › Tax. It prints on invoices that show tax. Reports › Tax Report shows tax collected on sales and paid on purchases for any period.