Hi. I wonder if there is a way to record Income tax sale on the invoice. This tax is not charged to the client is something the company has to pay over income. Ex rent for an apartment is $600 and for that amount I have to pay 12.75% in taxes each month. It is not a sales tax it is an Income Tax. There are other lines in the invoice such as maintenance that are tax free; also in some cases, dependen on the amount we have to charge sales tax also.
It is unusual for income tax to be imposed as a flat rate on the value of each sale. If that is the case you should generate a sales report every month and calculate 12.75% income tax on the gross sales total.
You can enable withholding tax feature , in sales invoice entry, enter tax value, proceed further.
Detailed description available as help in manager website
Yes inusual but it is what it is. I would ike to calculate the tax for each invoice so that I would be able to know how much I owe for that particular tax at that moment.
You can create a tax code named Income Tax and link it to an income tax liability account but the income tax will show on the sales invoice and cannot be removed.
Is it a problem if the invoice makes all these different tax requirements visible or does your income tax liability need to be hidden?
For each line item, exactly what combinations of taxes may apply in practice?
Depending on the answer to the above 2 questions, either use
multipart tax codes or
tax codes tagged to indicate if income tax liability accrues or not. Then use the tax summary report each month.
The income tax can be visible but not charged to the customer. It can be either sales tax, income tax or both.
Not even with a custom theme?
Create / use the following tax codes
- Sales tax
- No sales
- Sale tax(I)
- No sales(I)
Use the tax codes with an (I) if income tax liability accrues for you. Use tax code without an (I) if income tax does not accrue with that item. (Or some other identifier in the tax code name such as capitalisation).
Configure the tax codes so sale tax from both “Sales tax” and “Sales tax(I)” accumulate in the same account.
Then use the tax summary report to calculate your Income tax to be paid for each period as required.
Final solution found al last. This way the customer is not charged nor the tax shows in the invoice and the amount get recorded on the tax account each time an invoice is issued.
You are making a serious mistake, @BaldeSeca. Flat rate tax codes in Manager are not for income taxes. They support so-called flat rate VAT schemes under which businesses assess and collect output VAT as usual, but, instead of tracking and offsetting specific input VAT on purchases, pay a fixed percentage (the flat rate) of sales including output VAT. See the Guide: https://www.manager.io/guides/8901
Since only one tax code can be applied to a line item, your custom flat-rate code calculates zero tax to be collected from the customer. It does, indeed, record a 12.75% tax liability. But it also shows the application of your tax code to the line item, even though no amount for the tax is added to the subtotal.
Further, your various tax reports will be nonsensical, as the program treats the custom tax code as though it were VAT. But most importantly, your income figures will be understated, because Manager treats the difference between output VAT and flat rat VAT as additional income. And, since your output VAT is zero, that additional income is negative. Every line item to which you apply it will be understated in your income accounts by 12.75%.
Ok. Makes sense, I’ll check my numbers to clearly see what you say. The way I was proposing is usefull since I have to pay each month that tax over income and it is reflected on the report.