Tax Rule
Tax Rules determine which tax template to apply to a transaction based on the combination of the customer/supplier tax category, item tax category, and transaction type.
How Tax Rules Work
A Tax Rule says: "When selling to a VAT Registered customer in Riyadh (tax category), use the Standard VAT 15% template."
This allows you to handle complex tax scenarios without manually selecting tax templates on each transaction.
Creating a Tax Rule
- Go to Accounting > Tax Rule and click New.
- Enter the tax rule details:
- Tax Category: The category assigned to the customer/supplier
- Item Tax Template: The tax template to apply when this rule matches
- Sales Tax Template: The tax template for sales transactions
- Purchase Tax Template: The tax template for purchase transactions
- Valid From: Date from which this rule is effective
- Priority: Higher priority rules are checked first
- Click Save.
Example Tax Rules
| Customer Category | Transaction | Tax Template | Result |
|---|---|---|---|
| VAT Registered | Sales | Standard VAT 15% | 15% VAT added |
| Overseas | Sales | Zero-Rated 0% | No VAT (export) |
| VAT Exempt | Sales | Exempt | No VAT |
| VAT Registered | Purchase | Standard VAT 15% | Input VAT claimed |
Tax Rule Priority
When multiple rules could apply, YousrERP uses the highest priority rule. Set higher priorities for more specific rules and lower priorities for fallback rules.