6.1. Tax Categories

Tax categories represent groups of VAT rates that have the same fiscal product categorisation. The tax categories are indicated when defining a product. Each product is associated with a tax category, which allows for more control when changing tax percentages.

The Tax Category window is used to define tax categories, located in the Performance Analysis -> Accounting Rules -> Taxes menu. The following fields are available:

Name, Description - are used to identify the tax category within the system;
Commodity Code - the commodity code is used in tax calculations;
Active - indicates whether the category is active in the system;
Default - if checked, this record will be used as a default value;

The Translation tab is used to enter the translations for tax categories.

Tax Category Assignment - Product

In the next step, enter the corresponding tax category during the product definition. In the Product window, in the Tax Category field, select one of the available tax categories.

For further information on tax rates application, see Tax Rate application rules.

Tax Category Assignment - Expenses

There are different types of expenses (costs) that are invoiced to a customer. In SocrateCloud, the generic name of these is "Costs".

One type of costs can be a transportation tax, a bank commission, or a manipulation commission. Each cost type needs to have a corresponding tax category.

Assigning tax categories-products is done by accessing the Charge window, located in the Performance Analysis -> Accounting Rules menu.