How Do I Manage Different Rates of Tax?
Tax Options for Invoices
When you create an invoice, Clarus WMS lets you choose how tax is applied. This means you can decide if the prices on your invoice include tax or if tax is added separately.
Step-by-Step Guide
Understanding the Tax Options Available
When you are creating an invoice, you will see a field called Amounts Are with a drop-down menu. You can select one of the following options:
1. No Tax
This option is for items that do not have tax applied. If you choose No Tax, the whole invoice must be tax-free. If you have any taxable items, you will need to create a separate invoice for them.
2. Tax Exclusive
If you select Tax Exclusive, the price of each item does not include tax, but tax will be added. The tax amount will be worked out separately and then added to the total cost.
3. Tax Inclusive
Choosing Tax Inclusive means that the unit price already has the tax included. The total cost will show this, and no extra tax will be added separately.
REMEMBER: By selecting one of these options, Clarus WMS will automatically work out the invoice totals based on whether tax is included or not.FAQs
Can I apply different tax rates to different items on the same invoice?
No, if you select No Tax, all items on that invoice must be tax-free. Otherwise, all items will have tax applied using either Tax Exclusive or Tax Inclusive.
What is the difference between Tax Exclusive and Tax Inclusive?
Tax Exclusive means that the tax is added to the item price, while Tax Inclusive means the tax is already part of the price.
Can I change the tax option after creating an invoice?
Yes, you can edit the invoice and change the tax option before you finalise it.
Is VAT automatically calculated?
Yes, once you choose the tax option, the system will automatically work out VAT based on the method you have chosen.
What happens if I select No Tax for an item?
The item will be treated as non-taxable, and no VAT or other taxes will be applied to the invoice.
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