If your business needs to apply a 0% sales tax (e.g., for zero-rated items or services), follow these steps to configure it properly in NuMetric. This setup ensures compliance while still tracking the invoice value and tax classification.
Step-by-Step Guide:
Go to your Profile.
Click on Settings.
Navigate to the Accounting & Tax section.
Click Create Tax.
In the Tax Name field, enter a name (e.g., Zero Sales Tax).
Add an appropriate Abbreviation (e.g., ZST).
Provide a Description to clarify usage (optional).
Set the Tax Rate (%) to 0.
➡️ When you enter “0” as the tax rate, two new options will appear:Exempted
Zero Percentage Tax
Select Zero Percentage Tax to classify this as a zero-rated tax, not an exemption.
For sales tax on Sales, assign the tax to the Liabilities category.
→ NuMetric will track all related amounts from invoices under this account.Click Create.
✅ Important:
Do not manually add sales tax accounts in the Chart of Accounts. NuMetric will automatically generate and link the correct accounts when the tax is created using this process.
1. Navigate to your "Profile"
2. Select and click on "Settings"
3. Navigate to "Accounting & Tax"
4. Click "Create Tax"
5. Click the "Tax Name" field and Type "Tax Name"
6. Add the "Abbreviation" you need.
7. Add a "Description".
8. Add the "Tax Rate (%)" field (Numbers Only) in this scenario it will "0"
Once you have "0" in the "Tax Rate (%)" field, additional two options will appear. "Exempted" and "Zero Percentage Tax"
9. Select "Zero Percentage Tax"
10. For Sales Tax on your Sales, select Liabilities.
NuMetric will recognize all sales tax on sales (Invoices) calculated to the created account.
11. Click "Create."
Once you click Create, NuMetric will create the required account under Liabilities in the Chart of Accounts.
⚠️ Importnat Note
Do not create sales tax accounts under the "Chart of Accounts." NuMetric, once Tax is created, will establish them.