Tax definitions and statutory deductions
A tax definition provides an invoice option. Statutory deductions affect relevant payroll calculations; do not take legal rates from guide examples.
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Before you start
Select the correct company and verify permissions. Learn in a test workspace; posting or restoring can change actual data.
Workflow
- Add the tax name, rate, type and required account, then save.
- Open a new invoice and choose the tax; check the line amount and total summary.
- Check whether price includes tax or tax is added; do not compare prices without this context.
- In deductions, verify employee and employer rates, bands and currencies with the responsible authority.
Watch this distinction
A tax being valid in the system does not prove legal compliance. Verify local rules before approving rates or reports.
Verify the result
Reopen the record and check saved values and state. For financial operations, compare the document with the relevant movement and report before continuing.