Tax & e-invoicing

The Tax module holds the rules every document is taxed by: who you report tax to, the rates you charge, and which rate applies to which item. It also signs and sends your invoices to the tax authority’s e-invoicing platform where the law asks for it.

How it fits together

Part	What it is
Tax authority	The government body you report tax to, with the country it covers. A tax code only applies in its authority’s country.
Tax code	One tax at one rate, such as standard VAT at 15% or a zero-rated export. It says what kind of tax it is, whether it is used on sales, purchases or both, and which posting profile its tax books to.
Rate history	The rates a tax code has charged over time. A rate change starts a new period, so older documents keep the rate of their own date.
Tax group	The set of tax codes charged together on a line. Most groups hold one code; a group can add a second tax on top of the first.
Item tax group	Each item names the group it is taxed under, so a line takes its tax from the item.
Prices include VAT	A switch on each price list. When it is on, the listed prices already contain the tax.
E-invoicing device	A certificate your subsidiary signs its invoices with, registered with the tax authority.

How a line’s tax is found

1. The line takes the Tax group of its item. On a document you can pick another group for one line.
2. Of the group’s codes, only those whose authority covers your subsidiary’s country, and that are used on this side of the trade (sales or purchases), apply.
3. Each code charges the rate in force on the document’s date.
4. The tax is worked out on the line’s amount after discounts, and rounded to the currency’s decimals.

The details are in How tax is worked out.

What a taxed sale creates

• Every quotation, order, invoice and bill shows its tax per line and a breakdown by kind and rate under the lines.
• When an invoice posts, its tax books to the Tax payable account of each code’s posting profile; a bill’s tax books to Tax receivable. See Book tax to the ledger.
• In Saudi Arabia, the posted invoice or credit note carries a QR code, and with a connected device it is signed and sent to the tax authority. See E-invoicing.

Note

When you add a subsidiary in Saudi Arabia, the United Arab Emirates, Egypt or Jordan, Axon Suite sets up that country’s tax authority, its usual tax codes and a tax group for each. Check them before your first sale, and give each code that charges tax a posting profile.

Before you start

Each task checks the access level of the user doing it:

Task	Access level needed
See tax authorities, codes or groups	View on Tax Authorities, Tax Codes or Tax Groups
Add one	Create on the same resource
Change one, or a rate	Edit on the same resource
Archive or restore one	Full on the same resource
See the e-invoicing devices	View on E-Invoicing
Start connecting a device	Create on E-Invoicing
Run the compliance check, activate a device, or make it the primary	Approve on E-Invoicing
Revoke a device	Full on E-Invoicing

Where to start

1. Review the starting taxes and add the codes you are missing.
2. Build the tax groups your items are taxed under, and give each item its group.
3. Point each tax code at its accounts.
4. Set prices with or without tax on your price lists.
5. In Saudi Arabia, prepare the subsidiary and connect a device.