Add a tax rule

Add a tax rule when a service needs a tax treatment your country rules do not have yet, for example a zero-rated rule for international transport or an exempt rule.

Before you start

• You need permission to change settings.
• In Saudi Arabia, a rule that is not standard rate needs one of ZATCA's official reasons (VATEX codes). Check with your accountant which one applies.

Steps

1. Open Settings → Taxes.
2. Press Add rule at the top, or Rule next to the country's name. The New tax rule window opens with that country's usual rate filled in.
3. Type the Name in English (required, for example VAT 15%) and the Name in Arabic.
4. Check the Country. Choosing another country fills in that country's rate and category again.
5. Choose the Category: Standard rate, Zero rated, Exempt or Out of scope.
6. For Standard rate, type the Rate % (above 0, up to 100). For the other categories the rate is 0 and cannot be changed.
7. For the other categories, choose the Reason. In Saudi Arabia it is ZATCA’s official list (required on e-invoices); elsewhere you may pick one or choose Write your own below. Picking a reason fills in the printed wording.
8. Check or type Reason printed (English) and Reason printed (Arabic). This is the text on the invoice.
9. Tick Prices include tax if your prices already contain the tax: The tax is worked out of the price the customer sees, so the total stays as priced. Untick it to add the tax on top.
10. Tick Default for this country if new lines in this country should start with this rule.
11. Press Save. The message Tax rule saved appears and the rule shows in the country's table.

After you save

• The rule can be chosen on branches (Tax rule for new lines), trips and booking lines in that country.
• If you ticked Default for this country, the previous default is no longer the default, and new lines without another rule use this one.
• Invoices already issued do not change.
• If you leave the reason empty outside Saudi Arabia, the invoice prints Exempt from VAT, Zero rated or Not subject to tax in English, with the matching Arabic wording, depending on the category.

If something goes wrong

• Save stays grey: the English name, the rate or the country is empty.
• A standard-rate rule needs a rate above 0: type a rate, or choose another category.
• Zero-rated, exempt and out-of-scope rules have rate 0: set the rate to 0 or choose Standard rate.
• Choose the exemption reason (needed for e-invoicing): in a country with e-invoicing, pick a Reason.
• Choose a reason from the official list: pick a code from the list instead of another one.
• This reason is for category …: the reason belongs to another category. Pick a reason of the category you chose.