Sales Taxes and Charges Template
A Sales Taxes and Charges Template defines the tax structure that is applied to sales transactions. It specifies which taxes are charged on each sales document.
Creating a Sales Tax Template
- Go to Accounting > Sales Taxes and Charges Template and click New.
- Enter a Title (e.g., "Saudi VAT 15%", "Export Zero-Rated").
- Select the Company.
- Check Is Default to make this the default for new sales transactions.
- Add tax rows:
- Type: Select the type (e.g., "On Net Total" for VAT)
- Account Head: The tax account (e.g., VAT Output)
- Rate: The tax percentage (e.g., 15 for 15%)
- Description: Text that appears on invoices (e.g., "VAT @ 15%")
- Cost Center: If applicable
- Click Save.
Tax Calculation Types
| Type | Description |
|---|---|
| Actual | Fixed amount per item |
| On Net Total | Percentage on the net (pre-tax) total |
| On Previous Row Amount | Calculated on the amount of a previous tax row |
| On Previous Row Total | Calculated on the running total |
| On Item Quantity | Fixed amount multiplied by quantity |
Standard Saudi VAT Template
For Saudi Arabia, a typical Sales Tax Template:
- Type: On Net Total
- Account Head: VAT Output (15%)
- Rate: 15
- Description: "VAT @ 15%"
Applying to Transactions
Sales Tax Templates can be applied at:
- Customer Level: Set a default template on the Customer master
- Item Level: Through Item Tax Templates
- Tax Rule Level: Through Tax Rules based on tax categories
- Transaction Level: Manually selected on the Sales Invoice or Sales Order