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Set up tax groups and rates

Growmax ARC works out tax from tax rates and tax groups. A tax rate is one percentage, such as a sales tax or VAT. A tax group bundles one or more rates into the tax a product carries. Set these up once, choose your defaults, and quotes, orders and invoices pick the tax up from the product.

Before you start​

  • You need access to Settings.
  • Decide how your tax works: one rate, or several rates combined, such as the central and state parts of a goods and services tax.
  • There is no Tax item in the sidebar. Open it from Settings.

Create a tax rate​

  1. Go to Settings > Tax Configuration. The page lists your tax rates and tax groups.
  2. In the rates list, choose Create.
  3. Fill in the form:
    • Tax Name and Tax Code. The Auto button builds a code from the name. Codes must be unique.
    • Tax Type, such as Sales Tax, VAT, GST or CGST.
    • Tax Rate (%), from 0 to 100.
    • Country, which is filled in from your organization. State or province, city and postal code are optional.
    • Calculation Method: Tax Inclusive (already in the price), Tax Exclusive (added on top), Compound (calculated on the price plus earlier taxes) or Additive.
    • Jurisdiction, for example federal or state.
    • Optional Minimum Amount and Maximum Amount the rate applies to, and Valid From and Valid To dates.
  4. Switch Default Tax Rate on if this should be your default, and keep Active on.
  5. Save.

Create a tax group​

  1. In Settings > Tax Configuration, choose Create in the groups list.
  2. Enter a Name and Code, an optional Description, and the Calculation Method for the group.
  3. Use Add Tax Rate to add rates to the group. Only active rates are offered. The form shows the Total Rate as you add them.
  4. Keep Active on and save.

A group must keep at least one rate. You can open a group later to add or remove rates.

Choose your defaults​

On Settings > Tax Configuration:

  • Tax System Type describes how your tax is structured.
  • Default Sales Tax Group is the group used for sales when a product has none of its own. Choose None (require product-level tax) if every product must carry its own group.
  • Default Purchase Tax Group is the group used for purchases. Leave it on Same as sales if they match.

New documents calculate tax as exclusive by default: the tax is added on top of the price.

Apply tax to products and customers​

  • On a product. Open the product and choose its Sales tax group, or leave it on Organization default. Switch on Tax exempt for a product that carries no tax, and give a reason. See Products and variants.
  • On a customer. Open the customer and use the Tax-Exempt Customer card to record that they are exempt, with a certificate number, validity dates and a reason. See Manage customers.

Quotes, orders and invoices then show the tax on each line, and the totals follow it.

Change or retire a rate or group​

Open a rate or group from the list to edit it, switch it off, or delete it. ARC refuses to delete a rate that a group still uses, and shows the reason. Remove the rate from the group first. If a switch or delete is refused for any other reason, the message says why.

Tips​

  • Use Tax Inclusive only if the prices in your catalog already contain tax.
  • Give rates and groups clear codes, such as the tax name and region, so they are easy to find in the product form.
  • Check a new group by adding one line to a draft quote and reading the tax shown.