{"id":17477,"date":"2024-04-23T11:53:48","date_gmt":"2024-04-23T11:53:48","guid":{"rendered":"https:\/\/docs.daftra.com\/user_manual\/%d8%b6%d8%a8%d8%b7-%d8%a5%d8%b9%d8%af%d8%a7%d8%af%d8%a7%d8%aa-%d8%a7%d9%84%d8%b6%d8%b1%d8%a7%d8%a6%d8%a8-%d9%81%d9%8a-%d8%a8%d8%b1%d9%86%d8%a7%d9%85%d8%ac-%d8%af%d9%81%d8%aa%d8%b1%d8%a9\/"},"modified":"2025-05-18T12:06:39","modified_gmt":"2025-05-18T12:06:39","slug":"setting-up-the-tax-settings-in-the-system","status":"publish","type":"user_manual","link":"https:\/\/docs.daftra.com\/en\/user_manual\/setting-up-the-tax-settings-in-the-system\/","title":{"rendered":"Setting up the Tax Settings in the System"},"content":{"rendered":"<section class=\"wpb-content-wrapper\"><p>[vc_row][vc_column][vc_column_text css=&#8221;.vc_custom_1747569002203{margin-left: 200px !important;}&#8221;]<\/p>\n<p style=\"text-align: left;\">Taxes vary depending on the country, products, and other factors. Through the system, you can add all the types of taxes you want to calculate, as explained in the following guide.<\/p>\n<p>[\/vc_column_text][vc_custom_heading text=&#8221;How to add a New Tax to the Account&#8221; font_container=&#8221;tag:h2|font_size:28|text_align:center|color:%2304306b|line_height:2&#8243; use_theme_fonts=&#8221;yes&#8221; css=&#8221;.vc_custom_1715155978386{margin-left: 200px !important;background-color: #f6f9fc !important;border-radius: 4px !important;}&#8221;][vc_column_text css=&#8221;.vc_custom_1747569546395{margin-left: 200px !important;}&#8221;]<\/p>\n<p style=\"text-align: left;\">You can easily add the types of taxes you want to calculate on the system by going to <strong>&#8220;Tax Settings&#8221;<\/strong> under <strong>&#8220;Settings&#8221;<\/strong> in the main menu<\/p>\n<p style=\"text-align: left;\">Then click on the <strong>&#8220;Add&#8221;<\/strong> button and enter the following new tax details:<\/p>\n<ul>\n<li style=\"text-align: left;\">Tax Name<\/li>\n<li style=\"text-align: left;\">Tax Value as a Percentage<\/li>\n<li style=\"text-align: left;\">Tax Type: Inclusive or Exclusive\n<ul>\n<li>Inclusive Tax:\n<div class=\"wpb_text_column wpb_content_element \">\n<div class=\"wpb_wrapper\">\n<p>The inclusive tax is part of the price set for any transaction selected with the inclusive tax<\/p>\n<p><strong>Example:4<\/strong><\/p>\n<p>If you are selling a product priced at $<strong>100<\/strong>, and the tax type is set to <strong>\u201cInclusive\u201d<\/strong> in the system, then in this case, when creating the invoice, the total invoice value for the product after tax is $<strong>100<\/strong>,<\/p>\n<p>where the product cost is $<strong>89.96<\/strong>, and the tax value is $<strong>13.04<\/strong>.<\/p>\n<p>The total after tax is $<strong>100<\/strong>.<\/p>\n<\/div>\n<\/div>\n<div class=\"vc_separator wpb_content_element vc_separator_align_center vc_sep_width_100 vc_sep_pos_align_center vc_separator_no_text vc_sep_color_black\"><\/div>\n<\/li>\n<li>Exclusive Tax: The exclusive tax is separate from the selling price and is added to the product\/transaction value\u00a0 \u00a0 \u00a0 <strong>Example: <\/strong>If you are selling a product priced at $<strong>100<\/strong>, and the tax type is set to <strong>\u201cExclusive\u201d<\/strong> in the system, then in this case, when creating the invoice, the total invoice value for the product is $<strong>115 <\/strong>after tax is added,where the product cost is $<strong>100 only \u201cexclusive of tax\u201d<\/strong>,and the tax value is $<strong>15<\/strong>making the total after tax $<strong>115<\/strong>.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p style=\"text-align: left;\">then click on the <strong>&#8220;Save&#8221;<\/strong> button.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-17491 size-full\" src=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/04\/2024-05-08_11h34_42.png\" alt=\"\" width=\"1797\" height=\"718\" srcset=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/04\/2024-05-08_11h34_42.png 1797w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/04\/2024-05-08_11h34_42-300x120.png 300w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/04\/2024-05-08_11h34_42-1024x409.png 1024w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/04\/2024-05-08_11h34_42-768x307.png 768w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/04\/2024-05-08_11h34_42-1536x614.png 1536w\" sizes=\"auto, (max-width: 1797px) 100vw, 1797px\" \/><\/p>\n<p style=\"text-align: left;\">The new tax appears when you choose the type of tax applied to the product or service in invoices, as shown in the following screen<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-34627 size-full\" src=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/04\/rsfv.png\" alt=\"\" width=\"1891\" height=\"731\" srcset=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/04\/rsfv.png 1891w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/04\/rsfv-300x116.png 300w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/04\/rsfv-1024x396.png 1024w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/04\/rsfv-768x297.png 768w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/04\/rsfv-1536x594.png 1536w\" sizes=\"auto, (max-width: 1891px) 100vw, 1891px\" \/>[\/vc_column_text][vc_custom_heading text=&#8221;Viewing the Tax Accounts in the Chart of Accounts&#8221; font_container=&#8221;tag:h2|font_size:28|text_align:center|color:%2304306b|line_height:2&#8243; use_theme_fonts=&#8221;yes&#8221; css=&#8221;.vc_custom_1715156315528{margin-left: 200px !important;background-color: #f6f9fc !important;border-radius: 4px !important;}&#8221;][vc_column_text css=&#8221;.vc_custom_1747569970251{margin-left: 200px !important;}&#8221;]<\/p>\n<p style=\"text-align: left;\">When you create a new tax, the system will automatically create three accounts for this tax in the Chart of Accounts.<\/p>\n<p style=\"text-align: left;\">One main account for the required tax and within it, two sub-accounts for collected tax and payable tax.<\/p>\n<p>&nbsp;<\/p>\n<div id=\"1713866079.307389\" class=\"c-virtual_list__item\" tabindex=\"-1\" role=\"listitem\" aria-setsize=\"-1\" data-qa=\"virtual-list-item\" data-item-key=\"1713866079.307389\">\n<div class=\"c-message_kit__background p-message_pane_message__message c-message_kit__message\" role=\"presentation\" data-qa=\"message_container\" data-qa-unprocessed=\"false\" data-qa-placeholder=\"false\">\n<div class=\"c-message_kit__hover\" role=\"document\" aria-roledescription=\"message\" data-qa-hover=\"true\">\n<div class=\"c-message_kit__actions c-message_kit__actions--default\">\n<div class=\"c-message_kit__gutter\">\n<div class=\"c-message_kit__gutter__right\" role=\"presentation\" data-qa=\"message_content\">\n<div class=\"c-message_kit__blocks c-message_kit__blocks--rich_text\">\n<div class=\"c-message__message_blocks c-message__message_blocks--rich_text\" data-qa=\"message-text\">\n<div class=\"p-block_kit_renderer\" data-qa=\"block-kit-renderer\">\n<div class=\"p-block_kit_renderer__block_wrapper p-block_kit_renderer__block_wrapper--first\">\n<div class=\"p-rich_text_block\" dir=\"auto\">\n<div class=\"p-rich_text_section\">After creating the tax, click on <strong>&#8220;Chart of Accounts&#8221;<\/strong> under <strong>&#8220;General Accounts&#8221;<\/strong> in the main menu, then click on Liabilities, then Current Liabilities to find the tax account.<\/div>\n<div><\/div>\n<div class=\"p-rich_text_section\">For example, the required VAT account. Click on it to see the following sub-accounts:<\/div>\n<ul>\n<li>(Income VAT): Collected VAT and the collected amount beside it .<\/li>\n<li>(Outcome VAT): Paid VAT and the paid amount beside it.<\/li>\n<\/ul>\n<p>The total difference between the two sub-accounts appears above the required VAT account.<\/p>\n<div><\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-34629 size-full\" src=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/04\/rvfav.png\" alt=\"\" width=\"1916\" height=\"744\" srcset=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/04\/rvfav.png 1916w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/04\/rvfav-300x116.png 300w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/04\/rvfav-1024x398.png 1024w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/04\/rvfav-768x298.png 768w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/04\/rvfav-1536x596.png 1536w\" sizes=\"auto, (max-width: 1916px) 100vw, 1916px\" \/>[\/vc_column_text][vc_custom_heading text=&#8221;Tax Reports&#8221; font_container=&#8221;tag:h2|font_size:28|text_align:center|color:%2304306b|line_height:2&#8243; use_theme_fonts=&#8221;yes&#8221; css=&#8221;.vc_custom_1715156903894{margin-left: 200px !important;background-color: #f6f9fc !important;border-radius: 4px !important;}&#8221;][\/vc_column][\/vc_row][vc_row][vc_column][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text css=&#8221;.vc_custom_1715158804715{margin-left: 200px !important;}&#8221;]<\/p>\n<p style=\"text-align: left;\">To view the reports related to taxes, click on <strong>&#8220;Accounting Reports&#8221;<\/strong> under <strong>&#8220;Reports&#8221;<\/strong> in the main menu to find both the tax report and the tax declaration. View the one you want, adjust its filters as you want, and download it.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-17498 size-full\" src=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/04\/2024-05-08_11h50_21.png\" alt=\"\" width=\"1860\" height=\"766\" srcset=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/04\/2024-05-08_11h50_21.png 1860w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/04\/2024-05-08_11h50_21-300x124.png 300w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/04\/2024-05-08_11h50_21-1024x422.png 1024w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/04\/2024-05-08_11h50_21-768x316.png 768w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/04\/2024-05-08_11h50_21-1536x633.png 1536w\" sizes=\"auto, (max-width: 1860px) 100vw, 1860px\" \/><\/p>\n<p style=\"text-align: left;\">The tax report appears to you, where you choose the type of tax you want to view the report for, as well as the time period. You can then download the report as an Excel or PDF file.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-17500 size-full\" src=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/04\/2024-05-08_11h56_34.png\" alt=\"\" width=\"1659\" height=\"686\" srcset=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/04\/2024-05-08_11h56_34.png 1659w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/04\/2024-05-08_11h56_34-300x124.png 300w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/04\/2024-05-08_11h56_34-1024x423.png 1024w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/04\/2024-05-08_11h56_34-768x318.png 768w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/04\/2024-05-08_11h56_34-1536x635.png 1536w\" sizes=\"auto, (max-width: 1659px) 100vw, 1659px\" \/>[\/vc_column_text][\/vc_column][\/vc_row]<\/p>\n<\/section>","protected":false},"author":13,"template":"","categories":[2054,2043],"tags":[3874,2884],"class_list":["post-17477","user_manual","type-user_manual","status-publish","hentry","category-tax-settings","category-settings","tag-taxes","tag--en"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v17.8 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Setting up the Tax Settings in the System - Daftra Knowledge Base<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/docs.daftra.com\/en\/user_manual\/setting-up-the-tax-settings-in-the-system\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Setting up the Tax Settings in the System - Daftra Knowledge Base\" \/>\n<meta property=\"og:description\" content=\"[vc_row][vc_column][vc_column_text css=&#8221;.vc_custom_1747569002203{margin-left: 200px !important;}&#8221;] Taxes vary depending on the country, products, and other factors. Through the system, you can add all the types of taxes you want to calculate, as explained in the following guide. [\/vc_column_text][vc_custom_heading text=&#8221;How to add a New Tax to the Account&#8221; font_container=&#8221;tag:h2|font_size:28|text_align:center|color:%2304306b|line_height:2&#8243; use_theme_fonts=&#8221;yes&#8221; css=&#8221;.vc_custom_1715155978386{margin-left: 200px !important;background-color: #f6f9fc !important;border-radius: 4px !important;}&#8221;][vc_column_text css=&#8221;.vc_custom_1747569546395{margin-left: [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/docs.daftra.com\/en\/user_manual\/setting-up-the-tax-settings-in-the-system\/\" \/>\n<meta property=\"og:site_name\" content=\"Daftra Knowledge Base\" \/>\n<meta property=\"article:modified_time\" content=\"2025-05-18T12:06:39+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/04\/2024-05-08_11h34_42.png\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data1\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebSite\",\"@id\":\"https:\/\/docs.daftra.com\/#website\",\"url\":\"https:\/\/docs.daftra.com\/\",\"name\":\"Daftra Knowledge Base\",\"description\":\"Daftra\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/docs.daftra.com\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"ImageObject\",\"@id\":\"https:\/\/docs.daftra.com\/en\/user_manual\/setting-up-the-tax-settings-in-the-system\/#primaryimage\",\"inLanguage\":\"en-US\",\"url\":\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/04\/2024-05-08_11h34_42.png\",\"contentUrl\":\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2024\/04\/2024-05-08_11h34_42.png\",\"width\":1797,\"height\":718},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/docs.daftra.com\/en\/user_manual\/setting-up-the-tax-settings-in-the-system\/#webpage\",\"url\":\"https:\/\/docs.daftra.com\/en\/user_manual\/setting-up-the-tax-settings-in-the-system\/\",\"name\":\"Setting up the Tax Settings in the System - Daftra Knowledge Base\",\"isPartOf\":{\"@id\":\"https:\/\/docs.daftra.com\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/docs.daftra.com\/en\/user_manual\/setting-up-the-tax-settings-in-the-system\/#primaryimage\"},\"datePublished\":\"2024-04-23T11:53:48+00:00\",\"dateModified\":\"2025-05-18T12:06:39+00:00\",\"breadcrumb\":{\"@id\":\"https:\/\/docs.daftra.com\/en\/user_manual\/setting-up-the-tax-settings-in-the-system\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/docs.daftra.com\/en\/user_manual\/setting-up-the-tax-settings-in-the-system\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/docs.daftra.com\/en\/user_manual\/setting-up-the-tax-settings-in-the-system\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/docs.daftra.com\/en\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Setting up the Tax Settings in the System\"}]}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Setting up the Tax Settings in the System - Daftra Knowledge Base","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/docs.daftra.com\/en\/user_manual\/setting-up-the-tax-settings-in-the-system\/","og_locale":"en_US","og_type":"article","og_title":"Setting up the Tax Settings in the System - Daftra Knowledge Base","og_description":"[vc_row][vc_column][vc_column_text css=&#8221;.vc_custom_1747569002203{margin-left: 200px !important;}&#8221;] Taxes vary depending on the country, products, and other factors. 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