Products can be updated as taxable or tax-exempt using the Product Template. Tax Products can be added using the Product Template.
Set Up a Product as Taxable or Tax Exempt:
- Navigate to the Products tab and select the product you wish to configure.
- Populate the Tax Type field to indicate whether your product is a Taxable Product or Tax Exempt Product.
Set Up a Tax Rate Product:
- Navigate to the Products tab and click the New button.
- Name your tax product (e.g. Australian GST Tax).
- Ensure it is marked Active.
- Populate the Revenue GL Account with the sales tax liability GL account that you have created for sales tax payable, for example, 2050-Good and Services Tax Payable.
- Set the Tax Type field to Tax Rate.
- Enter the appropriate tax percentage in the Tax Rate field.