Prism Users Guide - Chapter 5. Taxes
5.7.1 New Tax Rule
In Admin Console - Node Preferences - Transactions - Taxes - General, select the desired Tax Area from the drop-down. Click the Add button. The Add Tax Rule screen is displayed:
Enter a Name for the tax area.
In the Tax Rule Code drop-down, select the tax code that this rule will be applied to.
A set of check boxes let you designate the type of rule: Luxury, Rebate, or VAT Margin.
For each Threshold field, enter the amount at which the rate will be applied.
Note: Threshold 1 should be less than Threshold 2, and Threshold 2 less than Threshold 3.
Add Tax Rule screen:
Tax Rule Fields
| Field | Description |
|---|---|
| Name | Name of the tax area. Maximum 30 characters. |
| Tax Rule Code | A Tax Code is a label that designates the type of tax, if any that should be applied to the item. Each item is assigned a Tax Code. By default, items are assigned a Tax Code of TAXABLE. Each Tax Area can have its own rate defined for the TAXABLE Tax Code. Other default Tax Codes in Prism include EXEMPT. |
| Luxury | If selected, indicates that the tax rule will be applied as "Luxury Tax. Enabled = Apply tax as Luxury Tax. A Luxury Tax is different than a regular Sales Tax in that a Luxury Tax is typically only applied to the portion of an item's price above a certain threshold. This enables governments to tax so-called luxury items at a higher rate. |
| Rebate | Designates whether or not taxes applied by the Tax Rule can be rebated with Tax Rebate. Enabled = Taxes applied with this rule can be rebated. |
| VAT Margin | Designates whether VAT based tax values are calculated from the margin values. Normally with VAT you have a fixed sale price, a fixed VAT percentage and then calculate the price without tax from that (P$T$ - (P$T$ * VAT) = P$). If the "VAT Margin" option is selected in Prism Node Preferences > Taxes > Tax Areas, Prism will use the following calculation: (P$T$ - Cost) * Tax% / (100%+Tax %). |
| Threshold 1 | Designates the threshold in which Tax Rate 1 begins to be applied |
| Rate 1 | Designates the Tax Rate to be applied upon meeting Threshold 1. The actual methods for determining which portions of sale are taxed at Rate 1 may vary, depending on various settings. Specifically, the Luxury Tax flag determines if the rate slides fully or is segmented. |
| Threshold 2 | Designates the threshold in which Tax Rate 2 begins to be applied. |
| Rate 2 | Designates the Tax Rate to be applied upon meeting Threshold 2. The actual methods for determining which portions of sale are taxed at Rate 1 may vary, depending on various settings. Specifically, the Luxury Tax flag determines if the rate slides fully or is segmented |
| Threshold 3 | Designates the threshold in which Tax Rate 3 begins to be applied. |
| Rate 3 | Designates the Tax Rate to be applied upon meeting Threshold 3. The actual methods for determining which portions of sale are taxed at Rate 1 may vary, depending on various settings. Specifically, the Luxury Tax flag determines if the rate slides fully or is segmented |
| Char | Some countries have a tax requirement to show items that are taxable or non-taxable on the Receipt when both types are sold on the same transaction. The Char field is used to satisfy this requirement. |
| Message | Enter a string of characters. The characters can be printed along the bottom of the receipt as a Tax Code Legend (for example, "Non-taxable Item"). |
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