Item Tax Template
An Item Tax Template defines which taxes apply to a specific item or item group. When an item is added to a sales or purchase transaction, the associated taxes are automatically applied.
Creating an Item Tax Template
- Go to Accounting > Item Tax Template and click New.
- Enter a Title (e.g., "Standard VAT 15%", "Exempt").
- Add tax rows in the Taxes table:
- Tax Type: The tax account (e.g., VAT Output 15%)
- Tax Rate: The percentage (e.g., 15)
- Click Save.
Assigning to Items
- Open an Item record.
- In the Tax section, select the appropriate Item Tax Template.
- Save the item.
Now, whenever this item is used in a Sales Invoice or Purchase Invoice, the specified taxes are automatically added.
Common Tax Templates
| Template | Use Case |
|---|---|
| Standard VAT 15% | Most goods and services in Saudi Arabia |
| Zero-Rated | Exports, specific zero-rated goods |
| Exempt | Exempt goods and services |
| VAT 15% + Withholding 5% | Combined tax template |
Tax Template vs Tax Rule
- Item Tax Template: Linked to specific items — taxes that always apply to that item.
- Tax Rule: Uses tax categories to determine which tax template to apply based on the customer/supplier category and transaction type.