Creating a Percentage Tax Code

In mixed non-VAT sales invoices, use of percentage tax codes supports accurate sales breakdowns and reporting.

To create a percentage tax code:

The new percentage tax code appears in the Tax Code column on sales transactions.

See About Mixed Non-VAT Sales Invoices for a sample invoice and related details.

  1. Go to Setup > Accounting > Taxes > Tax Codes > New.

  2. Enter or set vales for the following fields:

    • Tax Code – Enter the name or abbreviation for the tax code.

    • Description – Enter a brief description.

    • Rate – Enter the tax percentage charged on items by this tax code.

    • Exempt – Don’t check this box. If you check both Exempt and Percentage Tax boxes, the system may return an error when calculating the tax summary.

    • Tax Type – Select the appropriate tax type to associate with this tax code (for example, NON-VAT PH).

      To create a new tax type, go to Setup > Accounting > Taxes > Tax Types. See Tax Types Overview for more details.

    • Available On – Select the transaction type to which this tax code applies.

    • Percentage Tax – Check this box to display the sales that is subject to percentage tax amount in the Sales Breakdown table.

  3. Click Save.

General Notices