While tax isn't the most exciting subject in the world its all part of running a business. Powered Now makes it easy to manage and set up. While this article talks about tax being VAT Powered Now will default to the tax abbreviation in the country you have registered for example TAX in the USA and GST in Australia.
Turning on Tax
Powered Now can work in two tax modes, tax inclusive and tax exclusive, to understand the difference:
Tax Inclusive means the tax element of a price is already included in the total price. A good example of this is the supermarket, when you buy a loaf of bread the tax is already included. You don't have to add the tax when you get to checkout its already been done! If you price like this then choose Tax Inclusive!
Tax Exclusive is just the opposite! This means the price has not had its tax element included. For example is a price was £100 you would have to add the tax element to it, lets assume tax is 20% so £100 + 20% = £120. You would normally see pricing like this for business to business transactions.
To select and set up your tax mode:
- Open settings by clicking the cog icon, the top right of the screen.
- Choose Tax Setup.
- Under Settings choose:
- To use Tax Inclusive prices, note if you keep this turned off Powered Now will default to Tax Exclusive mode.
- If you are tax registered, note if you turn this off there is no mention of tax within your prices, quotes or invoices. Turn this off if you do not use Tax at all.
- Registration number, add your tax number here for it to appear on your invoices and quotes.
- Default rate.
Setting Tax Rates
Powered Now shows with your countries default tax rates, however you may want to change what is used or add your own,
- Open settings by clicking the cog icon, the top left of the screen.
- Choose Tax Setup
- Under Tax Rates:
- Enable or disable the tax rates you would like to include within Powered Now.
- Press 'Add new tax rate' to add your own tax rates.