A tax is a compulsory contribution to government revenue, imposed by the government on personal income and business profits or added to the cost of certain goods, commodities, services and transactions.
When issuing an invoice, a bill or an estimate and for each item entry, you can add the relevant (associated) taxes.
Before issuing an invoice, make sure that you have already added the relevant taxes.
Elorus categorizes the taxes into 3 types. Each type differs in the way that it affects the payable amount.
These 3 groups are presented further below:
In this category, you can create your own tax. You can define whether the tax value will be a fixed amount or a percentage, and you can also choose the sign of the tax. These taxes are applied to each product listing and not to the total invoice value.
See how to add a simple tax here.
VAT taxes are levied on the price of each product entry included in an invoice. These taxes are specially treated by various application features (Tax reports, e.t.c.).
See how to add a VAT/GST tax here
A withholding tax is a state claim that is thus withheld or deducted from the payable amount due to the recipient.
Therefore, it must be a division between the total value of an invoice and the client’s payable amount.
See how to add a withholding tax here.