If the standard VAT/GST/Tax rate used in your country changes, then it is always recommended that you add a new rate rather than editing an existing rate. In some cases, the tax authority will expect you to apply the old rate for credit notes, refunds etc.
Under no circumstances should you change the rate of any existing Tax Rate codes. These are not date delimited and changing them could result in incorrect tax being calculated on older transactions that you edit.
Add or Edit Tax Rate
- Navigate to the Settings tab.
- Click on the Tax Rates link.
- To add a new Tax Rate, click the 'Add New Tax Rate' button.
- Create a minimum of two new tax rates to represent the new rate coming into effect.
- nn% Purchases.
- nn% Sales
There are a number of areas that Tax Rates might have been assigned and you will need to change this yourself as appropriate:
- Recurring Invoice items
- Chart of Accounts items with a default vat rate
- Bank Import Rules
- Price List items
In addition, please check the website of your tax authority to understand the specific rules on managing scenarios that arise from a rate change, e.g.:
- Invoices raised after rate change relating to sales/services provided prior to this date
- VAT on sales/services provided before and after this date that are billed on a single invoice