created new tax code from built in tax code list, example Myanmar CT5%
problem is the tax amount shown is less than the actual amount it should be like the image below. when I made a sales of $1000 in invoice and add CT5% included the actual 5% of $1000 should be $50 but in the invoice it shown $47.62 could not understand where is the root cause. tried figure out custom tax code both normal and flat rate. but it still does not calculated as predefined tax rate. it always show less than the actual tax amount. Could any one help with this issue? thank a lot
Are you using tax-inclusive or tax-exclusive rate? Read the Guide about choosing between them.
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Myanmar CT rate is 5 %
If You use inclusive tax rate ,it is similar to calculate = Amount/21
Because of Your amount is equivalent to 105 %, you have to pay 5 % from that amount.
If You exclusive tax rate ,it is similar to calculate = Amount /20
Because of Your amount is equivalent to 100%.
Thanks
I am Form Myanmar
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Wow, so exciting to hear reply from the person from my native country. Thank you Ma Thida for responding to my post. what I still do not clear is that, do the tax revenue department also practice the same concept as you explained, for example; suppose I collected 1000$ from customer and it is inclusive CT5% by default, so the tax revenue department will impose 47.62 out of 1000$ but not 50? I am a bit confuse…
@khine_pyisoe, your personal details were removed from your post. See FAQ - Manager Forum. If you wish to communicate privately, use the personal messaging feature on the forum.
As for your tax question, did you read Choose between tax-exclusive and tax-inclusive prices | Manager?
Hello, Tut. Thanks for your reply. sorry I am not familiar with the forum’s rule and regulations. How could I send private message to people?
Yes, I read about the guides 9502 it is clear, but I need to find out how the local tax authority is charging the tax thus I need to communicate to Thida privately. thanks
Click on your avatar in the upper right corner, then the envelope symbol. For example,
From there, the process is obvious.