Different sales tax rates (VAT/GST) may apply to different products.
As an example, the UK has three different sales tax rates:
- Standard (20%) for most goods and services
- Reduced rate (5%) for items like children’s car seats and home energy products
- Zero rate (0%) for most food and children’s clothes
South Africa only has two tax rates; Zero rated items (0%) like brown bread, and cooking oil, and the standard VAT rate, which is set at 15%.
Skynamo provides functionality to support different tax rates. Tax rates can be set per product (order unit) and can vary per price list. This would be used in the case where different tax rates apply in different regions, for example when selling the same product in the UK and in South Africa.
It is important to keep the following in mind when working with Tax/VAT in Skynamo:
- The Tax rate (%) is applied per product (order unit) per pricelist.
- When applying discounts, tax will be recalculated per line item after all discount has been applied.
- Skynamo will only apply tax to Quotes/Orders/Credit Requests going forward. No historic data will be updated after the release. Also ensure that your whole team is on the latest version of our Android and iOS app for tax rates to apply effectively.
To create your Tax rates in Skynamo, follow the steps below:
- Navigate to Settings, and click on Tax rates (to the left of the screen).
- Click the “Add tax rate” button in the top right to add a new tax rate.
- After you have clicked the “Add tax rate” button, you can specify the Tax rate name (e.g. “VAT” or “GST”) and the tax rate as a percentage (e.g. 15%), as can be seen below. Click “Create” at the bottom of the screen to continue.
- You can also set a “default tax rate” which will automatically be applied to line items with no tax rate linked to them.
- The next step is to add this tax rate to specific products. You can do this one-by-one per product, or by doing a bulk upload.
Adjusting tax rates:
After opening the required product from your product list. Navigate to the Price lists tab and select the desired Tax rate in the column to the right. When doing this it is important to check if the price list lists products including or excluding tax.
When opening a pricelist, you will also be able to see and edit the tax rates per product for that specific pricelist. Remember to tick the “Prices include tax” checkbox if the current prices include tax, as seen below:
Applying tax rates in bulk:
Firstly, download your entire product database into an Excel spreadsheet
Each price list has its own Tax rate column to its right, where you can easily assign the correct Tax rate to the correct product, by adding the Tax rate name.
Other notable changes
On the Timeline the order will indicate whether the total value includes or excludes tax, and you will also be able to see the tax breakdown per product. The dash (-) indicates that no tax rate was set on the product unit.
The email sent after the Order/Quote/Credit Request has been submitted would also indicate if the amounts are inclusive or exclusive of tax, the breakdown per product, and an asterisk (*) next to the total amount would indicate that all the tax rates were not available for the Order/Quote/Credit Request, or no price list was assigned to the customer at the time of this transaction.
*A product with a null (empty) price, can't have a tax rate set against it.
If you have any further questions regarding Tax in Skynamo, please contact our support team on 0861 345 345, or send them a mail to firstname.lastname@example.org