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Tax Code

Warren Hamilton
Warren Hamilton
  • Updated

Set up different tax codes and rates in the system. This involves setting up and maintaining tax schedule and rates  that will be used in the Accounts Receivable and Accounts Payable transactions.




1. From the homepage, go to Finance module.

2. Navigate to Finance Settings and Tax Code.




1. Click the Create New button.

2. Input the Tax Code name.

3. Assign a System Code for the tax code.

4. Configure whether to be used in Accounts Payable and Accounts Receivable by ticking the box.

5. Set up the Tax Schedule by clicking the Add button and populating the following:

  • Effective Start Date
  • Tax Rate %
  • Tax Rate Code
  • Validity End Date
  • Description

6. Once done, click the Save button.



Every Tax Code has a Tax Rate schedule that records change in Tax Rate overtime.  Given a transaction date, the System will apply the applicable tax rate to the selected tax code accordingly for all financial transactions (AR and AP) performed in the System.


How does the system pick up the Tax Rate?

  1. Based on the Tax Code selected for the supply.
  2. Based on settings: “By Revenue Period or Document Date, whichever comes earlier.
  3. Based on “Valid End Date” comparing against today's date
  4. For a historical Tax Rate which is no longer valid, the current rate based on Document Date will be applied.


  1. Valid End Date refers to the last day in which this rate can be use when raising a backdated charge.
  2.  The system permits users to set up a special tax code ie. "Not Applicable" for a special case when the Business Entity is not VAT registered. When performing a financial transaction for a non-VAT registered Business Entity, the System will impose the “Not Applicable” tax code. 


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