Tax Rates
Create and manage tax codes — configure once and the system applies them to every invoice, bill, receipt and payment.
Tax codes are the rules that tell Trabalance how to calculate and post tax on documents. Define one once — its type, its rate or amount, the base it applies to, and the ledger account — and it is applied every time it is selected on a document. When the document is created the tax line posts with the rest of the journal.
Navigate to: Finance → Taxes → New Tax
Tax Types
| Tax Type | Applied On | Direction | Default Ledger Account |
|---|---|---|---|
| Sales | Customer invoices and cash sales | Added to the total; the customer pays it, you remit it | Sales Tax Payable |
| Purchase | Vendor bills | Included in the bill; you pay it and recover it | None — choose the account (Purchases Tax Recoverable is created for you) |
| Receipt (Withholding) | Customer receipts | The customer pays less than the invoice; the invoice is still cleared in full | WHT Receivable |
| Payment (Withholding) | Vendor payments | You pay less than the bill; the bill is still cleared in full | WHT Payable |
The Taxes List
Each row shows Name, Type, Rate, Ledger Account ("Default" when the type's system account is used), Documents, Total Tax and Status (Active / Inactive). Tabs filter by type — All · On sales · On purchases · Withheld from us · Withheld by us — and the search matches the name. Clicking a row opens the code's page; Edit Tax there opens the same modal pre-filled.
Creating a Tax Code
Tax Type
Four cards in a two-column grid:
| Card | Description on the card |
|---|---|
| Sales | Applied to customer invoices |
| Purchase | Applied to vendor bills (recoverable) |
| Receipt (Withholding) | Deducted by customer from payments |
| Payment (Withholding) | Deducted from vendor payments |
Choosing a withholding type shows a note: "This tax type reduces the cash amount in receipts/payments", with which side deducts it.
Tax Details
| Field | Required? | Details |
|---|---|---|
| Tax Name | Yes | Placeholder "e.g., VAT, WHT, Sales Tax". 2–255 characters. This is what users pick on documents. |
| Method | Yes | "Percentage of a base" or "Fixed amount" |
| Rate (%) | When Percentage | 0–100, step 0.01. Placeholder "Enter percentage (e.g., 7.5)". |
| Amount | When Fixed | An amount per document or line |
| Applies to | Percentage only | "The document's gross total" or "The value excluding other taxes". Declared here, resolved from the document — never inferred from the cash received. |
| Effective from | No | Leave empty for today. Documents keep the rate that was in force on their own date. |
| Description | No | Placeholder "Add any additional details about this tax..." |
Ledger Account
| Option | Details |
|---|---|
| Use the system account for this tax type | Sales Tax Payable, WHT Receivable or WHT Payable by type. A Purchase code has no system default — leaving this blank means its tax never reaches the books, and the Taxes page will name it. |
| A specific account | The dropdown groups Recommended accounts (names that match the type) above All Accounts. Use it for a second authority or separate tracking. |
Advanced Settings
Collapsed by default; two checkboxes, both off:
| Setting | Description on the modal | Effect |
|---|---|---|
| Compound Tax | Calculate this tax on top of other taxes | Stored on the code and shown as a pill on its page. Document forms do not currently change their calculation for it. |
| Tax Inclusive | Prices include this tax by default | Stored on the code and shown as a pill on its page. Only the withholding calculation reads it; document line totals are not backed out. |
Save
Add Tax creates the code (the button reads Save Changes when editing and "Processing..." while it saves). The new code is immediately available on every document form.
Editing a Tax Code
Open the code from the list and click Edit Tax. Every field is editable, including the type.
Changing a code affects documents created after the change; it does not re-post historical journals. Use Effective from to date a rate change rather than editing the rate in place, so older documents keep the rate that applied to them.
What a Code Posts
| Account | Debit | Credit | Description |
|---|---|---|---|
| Accounts Receivable | 115.00 | — | What the customer owes |
| Sales | — | 100.00 | Revenue |
| Sales Tax Payable | — | 15.00 | The code's account — the system default for a Sales code |
The code's page shows the same figures back: its rate, the tax posted to the books, the documents that carry it, and its ledger account — with a warning when no account is set.
Related
- Tax Management — your position, read from the ledger
- Withholding tax — both directions of WHT
- Chart of Accounts — the classification system every report draws from
- System accounts — the accounts the app posts to on your behalf