UK Tax Setup

Set up of Tax for a UK based system

Tax Classes

1. Navigate to ‘Tax Classes’
2. Tax classes are simply labels for the tax types, e.g. Except, Standard, Zero and Utilities.
3. Using the Actions ‘Add Item’ to add the tax classes.
4. Save the tax class.

Tax Rate Types

1. Navigate to ‘Tax Rate Types’.
2. The Tax Rate Type determines the type of tax, e.g., VAT and the related GL control account.
3. Using the Actions ‘New Tax Rate Type’ to add the tax rate type.
4. Save the tax rate type.

Tax Zones and Rates

1. Navigate to ‘Tax Zones and Rates’.
2. The tax zones will have a header and the rates that are applied to that zone.
3. Using the Actions ‘Add’ to add a new tax zone, e.g., Standard UK, set the Country as UK and leave the Region and Post Code as blank.
4. Save the tax zone.
5. Add the tax rates to the zone using the Using the Actions ‘New Tax Rate Type’.
6. Select a Tax Class see previous.
7. Select a Tax Rate Type see previous, this will determine where the tax control account is, this should be asset as VAT (following the example in Tax Rate Types).
8. The percentage of tax can be set against the tax class.
9. An effective date range can be set as taxes change, leaving the start and end dates blank will mean the rates are always applied.
10. Save the tax rate.

Tax Groups

1. Navigate to ‘Tax Groups’.
2. Using the Actions ‘New Tax Group’ to add the tax group, e.g., Standard Taxation.
3. Save the tax group type.
4. After adding the tax group view the row and go to Tax Zones tab, add the tax zone see previous using the Maintain Zones Action.
5. Select the Tax Zone Standard UK see previous.

Customer and Supplier Accounts

1. All account customer and supplier details should be added as using the Standard Taxation Group see previous, regardless of location.
2. As the tax zone associated to the tax group was all the United Kingdom the tax can be calculated from the supplier address or the sales order delivery address.