Change in GST % of Maldives

1

Hi

Maldives has changed it’s GST from 6% to 8% effective from January 1st.

I noticed that Maldives is not available under default GST % (at least in the Desktop version). So we have been using the custom tax code.

My questions are:

  1. How do we change the GST % to 8 % as system default and can this be applied by default to all invoices?
  2. Earlier, I have been using tax % when I created inventory items, now do I need to change all those items from 6% to 8%?

Help is appreciated.

Thanks

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2

You need to create a new tax code and not change the rate on an existing tax code

See here Make tax codes inactive | Manager and here Create and use tax codes | Manager

3

We’ve also had a change in our VAT rate in Zimbabwe, so I’m going through the same process.

To apply your new tax code (created as per the guide @Joe91 linked to above) by default to all invoices, you need to consider what appears in your invoices. If you use inventory items or non-inventory items, then update the tax codes on those. You can use batch update to do this. If you manually type line items, you can set a tax code in the form default.

Something else to watch for, although it may not apply to your workflow: We use sales orders for a lot of our jobs. When the jobs are complete, we copy these sales orders to new sales invoices. In some cases, we have sales orders that were created before the change in VAT rate. When we copy these to a new sales invoice, the line items are copied with the old VAT rate, even though I set it to be inactive. So, you will need to watch for this and manually change these items to use the new tax rate.

4

Thanks both @Joe91 @GrahamvdR

I didn’t change the current tax code, but archived and created a new tax code for the newly changed rate.

But since all inventory items we sell are in previous tax code, I guess batch update is the only option to change them at once OR have to change each one manually right?

5

Right.