The tax configuration in iXERP is flexible enough to accommodate all tax rules and requirements in 26 countries.
The system contains the following configurable elements:
Tax ratesDefinitions of all used tax rates/types used in Item Tax Types and/or Tax Groups for customers and suppliers.
Please note that every created tax-rate should be assigned to the dedicated general ledger account in the chart of accounts, you cannot use one tax account for all tax types.
Customers and Suppliers Tax GroupsTax rates sets for various groups of customers and suppliers. This can accommodate different customers and suppliers tax rates in different industries and based on your country tax rules, this group may also include shipping tax if applicable, for example, a group can be created for the domestic customers (Local Tax rates and VAT) and another for international customers (Export Tax rates).
As part of tax integration with iXERP sales module and for more flexibility, Tax groups are assigned to customer branches, so at least one customer branch record must be created for each customer (It is created automatically during customer creation), otherwise, the customer is unusable for tax purposes. This is because the taxation does not depend on the legal company registration address, but on where the real business activity is performed. Therefore it has to be selected at the branch, not customer level.
iXERP sales module integrates with tax groups using Sales Types and price lists, to define if your business or some of your customers are using sales prices with tax included, so iXERP will calculate the Tax and VAT out of product provided price in the used price list.
Products/Services Tax TypesThis tax type and grouping can group all tax rates/types appropriate for some kind of goods or services sold. Please note, products/services Tax Types are defined in a reverse way, for example, by default iXERP includes all products/services tax type contains all tax rates that are not explicitly exempted. When creating a products/services tax type, you should exclude the tax types/rates that are not needed in this type.
Basically, the tax calculated is selected as an intersection of the set of taxes applicable to the products/services and a set of taxes applicable to customer/supplier.