Tax

Tax

RentalDesk can calculate simple taxes, or complex taxes that may be the combination of up to 3 separate sub-taxes such as a combination of a state tax and a city tax.

To access the Tax options:

For Simple Rate Taxes:

Use the New action button to create a new tax scheme or simply edit an existing scheme then rename the Description, set the Method to Standard

Select the Default Job Rental/Sales Tax box if the tax you are editing should be the default tax assigned to your jobs (see More about Taxation)

For Extended Taxes:

An Extended Tax is a tax which is a total of up to 3 separate subtaxes. Each subtax is given a name and a rate. You will need to specify how you would like these taxes to be calculated and there are several calculation methods are available for this. If you have three taxes, say a, b and c at 6%, 1% and .5% respectively, the calculation method can be one of the following:

Additive [a+b+c]%

All the 3 tax rates are added together and that is then applied to the invoice.

Example: On a $100.00 item the tax will be $7.50

Cumulative [a]%,[b]%,[c]%

Each tax will be applied individually in turn on the total including tax.

Example: On a $100.00 item the tax will be

1% of $100.00 = $1.00

+6% of $101.00 =$6.06

+.5% of $107.60 =$.54

Giving a total tax of $7.60

AddCumu [a+b]%,[c]%

The first two tax rates are added and the last tax rate is then applied on the total.

Example: On a $100.00 item the tax will be

1% + 6% of $100.00 = $7.00

+.5% of $107.00 = $. 54

Giving a total tax of $7.54

AddCumu [a]%,[b+c]%

The first tax rate is applied, then the sum of the last two tax rates is applied on the total.

Example: On a $100.00 item the tax will be

1% of $100.00 =$1.00

6% + .5% of $101.00 = $6.57

Giving a total tax of $7.57

When you save an extended tax scheme the Simple Rate is calculated for you based upon the method you have chosen for the scheme.