Tax services enable the tax calculation on invoices in Work 365. Within Tax services, there are two standard methods for tax calculation which are the Rate-Based Tax & No Tax Calculation.
Create the Tax Service:
- Filling out the mandatory fields- Type and Name, save it.
- Name: Name of the Tax Service.
- Type: They’re the method for calculating taxes in Work 365. We have a standard method for tax calculation which is the Rate-Based Tax & No Tax Calculation.
- Rate-Based Tax Service will allow you to calculate tax based on pre-defined tax rates from the system.
- No tax Calculation does not do any calculation and shall be useful in cases where certain customer invoices are not taxable and you can overwrite the same.
- Enter the Primary Address, Write-In and Default Tax Categories.
- Primary Address: Address of the Headquarter’ location.
- Write-In Tax Category: Tax category for write-in subscriptions. The tax category is defined on the product form. See more details below on tax categories.
- Default Tax Category: Tax category for products that do not have a default tax category defined. See more details below on tax categories.
- Calculate tax based on: Billing Address or Shipping Address
- Use rates directly:
- Yes- Use ‘Tax Group’ setting on the parent (eg: Billing Contract, Invoice) – taxes on all items are calculated using this. This is recommended for partners who have integration with QuickBooks US. This ensures that one rate is applied at the invoice level.
- No- Calculate tax at line item using the Write-In or Default Tax Service Categories. This is recommended for partners who have integration with non-US QuickBooks. This ensures that rates are applied at the line item level.
- Tax Region: Applies tax based on the Country or State
- Round to decimal: Refers to the decimals that are included in the calculation of the tax
- Apply Tax to overseas transactions:
- No- Calculate tax when primary address country is the same as the target country
- Yes- Calculate tax when primary address country is different from target country
Tax categories are ways to classify your product catalog based on a specific tax rate. It can be based on the region your business operates. They can be defined based on a specific tax rate and then associated with relevant products or services.
For instance, Office 365 Business is assigned the ‘Software- SaaS Downloadable’ tax category on the Product form in CRM.