Setup Taxes

To set up taxes and VAT accurately, determine applicable tax rates based on location and regulations. Configure your system to apply these rates to transactions. This ensures compliance with tax laws and ethical business operations.

Amount Limits

Amount limits apply only to percentage-based taxes, ensuring the tax amount is within a specified range, regardless of the calculated percentage.

Minimum Amount Limit

- This sets a floor for the tax amount.
- If the calculated tax is below this minimum amount, the tax will be set to the minimum amount.
- For instance, if the minimum tax amount is $5 and the calculated tax is $3, the tax will be adjusted to $5.

Maximum Amount Limit

- This sets a ceiling for the tax amount.
- If the calculated tax exceeds this maximum amount, the tax will be capped at the maximum amount.
- For example, if the maximum tax amount is $10 and the calculated tax is $15, the tax will be capped at $10.

Taxes Default

This feature allows you to set up commonly used taxes. Taxes are automatically applied when a new transaction or invoice is created.