Configure Tax Classes

Taxation in inspHire is calculated using:

To add Account and Product tax classes, head to System Setup > Tax Classes 

This is to maintain tax classifications for your customers, suppliers, manufacturers and stock. All you need to enter is a name that appropriately outlines who or what the Tax Class is for. 

Tax classes are used in conjunction with tax rules and tax rates to determine the taxes that are applied.

To add tax rates, go to System Setup > Tax Rates.

Tax rates are used by tax rules to calculate tax charges on an Order and Invoice. Some system default tax rates may have already been created for you.

A tax rate is associated with a country and optionally an area (postcode range). The options available here will vary depending on the country selected. 

Creating a tax rate is simple, you select add new tax rate and select the percentage of the rate you require. For example, for the UK 20% VAT you simply enter 20 into the box below: 

Once you have added in a Name and Rate you select the Green Add Tax Rate button.

Tax Rules

After you have made the Tax Class and Tax Rate you need to create a Tax Rule. 

Tax Rules are defined as a combination of an organization tax class and a product tax class with a tax rate. Each customer will be assigned a class and each product is assigned a tax class. Based on the class of the customer, the class of the products on an opportunity or invoice, and the region, inspHire will calculate the appropriate tax charge amount.

When calculating tax charges inspHire will select all tax rules that meet the following criteria:

Once all applicable rules have been matched, inspHire will then evaluate each rule in reverse priority order (ensuring the lowest priority rule is applied last). A tax charge is calculated using the selected tax rates for the rule - the region (address as specified above) is used to filter the selected tax rates.