Tax & VAT Settings¶
Configure tax rates and categories for expense tracking and reporting.
Accessing Tax Settings¶
- Click Admin in the sidebar
- Click Tax & VAT Settings
- Manage rates and categories
Finance Role Required
Finance and Admin users can manage tax settings.
Overview¶
Tax settings help with:
- Accurate expense categorization for tax purposes
- VAT/GST recovery tracking
- Compliance with local tax regulations
- Financial reporting accuracy
Tax Rates Tab¶
Creating Tax Rates¶
- Click Add Rate
- Enter rate details:
| Field | Description |
|---|---|
| Name | Rate name (e.g., "Standard VAT") |
| Country | Country code (US, GB, DE, etc.) |
| State/Province | For regional taxes |
| Tax Type | VAT, GST, Sales Tax, etc. |
| Rate | Percentage (e.g., 20%) |
| Is Recoverable | Can this tax be reclaimed? |
| Is Compound | Calculated on top of other taxes? |
| Effective Dates | When rate applies |
- Click Save
Common Tax Types¶
| Type | Regions | Typical Rates |
|---|---|---|
| VAT | EU, UK | 5% - 27% |
| GST | Canada, Australia | 5% - 10% |
| Sales Tax | US | 0% - 10% |
| HST | Canada | 13% - 15% |
Managing Rates¶
| Action | Description |
|---|---|
| Edit | Modify rate details |
| Deactivate | Keep history but stop using |
| Delete | Permanently remove |
Seeding Default Rates¶
Click Seed Default Rates to automatically add:
- Common US state sales tax rates
- EU VAT rates by country
- Canadian GST/HST rates
Tax Categories Tab¶
Creating Tax Categories¶
- Click Add Category
- Enter category details:
| Field | Description |
|---|---|
| Name | Category name (e.g., "Business Travel") |
| Code | Short code for reports |
| Description | What this category covers |
| VAT Code | Standard VAT code |
| Default Rate | Linked tax rate |
| Is Taxable | Subject to tax? |
- Click Save
Common Categories¶
| Category | Taxable | Typical VAT |
|---|---|---|
| Business Travel | Yes | Standard |
| Meals | Yes | Standard |
| Office Supplies | Yes | Standard |
| Books/Publications | Sometimes | Reduced |
| Public Transport | Sometimes | Zero/Reduced |
Tax Reference Tab¶
The reference tab provides:
- Common VAT codes explained
- Tax rate quick reference
- Recovery rules by country
- Compliance tips
VAT Recovery¶
Recoverable Taxes¶
Track which taxes can be reclaimed:
- Mark rates as "Recoverable" when creating
- Expenses with recoverable tax are flagged
- Export reports for VAT recovery claims
Non-Recoverable Examples¶
- Entertainment expenses (most countries)
- Meals (varies by country)
- Personal-use portions
Best Practices¶
- Research local requirements - Tax rules vary by jurisdiction
- Keep rates updated - Monitor for rate changes
- Use categories consistently - Improves reporting accuracy
- Track effective dates - Historical rates for audits
- Consult tax professionals - For complex scenarios
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