When adding items to a sales order, tax management depends on whether the item is taxable or tax exempt.
Managing taxes on a taxable item #
Tax added to item is:
- The customer’s tax.
- If the tax field of the chosen customer is empty, the tax is determined with the shipping address of the sales order.
- If no shipping address is provided, the tax is determined using the billing address of the sales order.
- If no billing address is provided, there will be no tax.
Managing taxes on an exempt item #
The tax added to the item is:
- The tax chosen in the Default tax to invoice on items when they are exempt.
- If the configuration is empty, there will be no tax.
Configure taxes by region #
If a customer does not have a tax set, ALIX must rely on the shipping or billing address to choose the correct tax. To do this, you must define taxes per region in the configurations.
In order for ALIX to find the correct tax based on the address, the Province and Country fields must be filled in. If one of these two fields is missing, the address will not be taken into account.
It is possible that country or province names are written differently in customer addresses. In order for ALIX to find the right region, you need to add synonyms to them. See how to do this here.
- In Settings, go to the Accounting section, then Taxes.
- All possible regions are already in the app. To add the correct tax to the correct region, click on the desired region, then click Edit at the top right of the screen.
- Choose a tax, then click Save.
Configure the default tax to invoice on items when they are exempt #
In the integration with Zoho Books, it expects to receive a tax when invoicing, regardless of whether the item is taxable or not. In the case of a tax-exempt item, you must choose a tax to send in the configurations.
- In Settings, go to the Integration section and click Details next to Zoho Books.
- Choose the desired tax under the Default tax to invoice on items when they are exempt.
