Tax types
Configure sales tax and withholding tax rules for your workspace when the Accounting module is installed.
Where to find it
Finance → Tax types (requires accounting.view).
Tax type kinds
| Kind | Direction | Used on |
|---|---|---|
| Sales tax | Add on sale | Invoice, credit note, quotation, estimate, and purchase order lines |
| Withholding | Deduct on payment in | Customer payments (tax withheld by the customer) |
| Withholding | Deduct on payment out | Expense pay (tax you withhold from a vendor) |
Each tax type has a fixed rate (%), optional authority reference (free text for your jurisdiction’s section or code), and optional GL account mapping.
Starter GL accounts
When Accounting is first used, these system accounts are seeded (or backfilled):
| Code | Name | Role |
|---|---|---|
2100 | Tax Payable | Sales tax liability on invoices |
1150 | Withholding Tax Receivable | Customer withholding on payments |
2150 | Withholding Tax Payable | Vendor withholding on expense pay |
Map tax types to these accounts (or your own liability/asset accounts) on each tax type record.
Sales tax on billing documents
On invoice and related line editors, pick an active sales tax type or enter a manual rate. When a tax type is selected, its rate is applied automatically.
When an invoice is sent (with Accounting installed), the accrual journal splits:
- Dr Accounts Receivable (total)
- Cr Revenue (subtotal)
- Cr Tax Payable (tax total)
Withholding on customer payments
On a payment, Amount is still the gross applied to AR. Withholding reduces the deposit only.
Example: $1,000 payment with 4% withholding → deposit $960, WHT receivable $40, AR credit $1,000.
Optional authority reference can be stored on the payment (copied from the tax type when blank).
Withholding on expense pay
When marking an expense paid, gross expense (amount + tax) is debited to the expense account. Cash credited is net of withholding; the withheld portion credits WHT Payable.
Counterparty defaults
- Contacts — default withholding type for customer payments (payment in).
- Vendors — default withholding type for expense pay (payment out).
These pre-fill payment and expense pay forms when the contact or vendor is selected.
Workspace tax profile
Settings → General (optional, for PDFs and reports):
- Tax country — ISO 3166-1 alpha-2
- Tax registration ID — your workspace tax identifier (printed on the invoice PDF seller header when filled; omitted when blank)