In this video, we will explain you how to configure sales tax.
Transcript
Hi! In this video, I'm going to show you how to configure sales tax. This option allows you to add sales tax to your sales, or through your sales tax added by the supplier to your costs.
On TourCMS, the sales tax setting allows you to:
- Add taxes through your selling price and/or supply costs.
- Vary tax amounts by product and by channel.
- Configure whether the price you load includes or excludes taxes.
- And lastly, to group products and the same sales tax level together to allow for quick editing.
I will now explain these steps for two different situations.
Situation 1: Loading Taxes for Selling Prices
The first one is to load taxes that apply to selling prices.
Step 1: Configure Price Loading
The first step is to configure whether prices are loaded, including or excluding taxes. For that, go to Configuration > System and Setup, and under your Money, click on Tax. Her,e you need to name the sales tax, for example, "VAT." The rest, leave on default, and then click on Save Changes.
Step 2: Create Sales Tax Types for Sales
The second step is to create sales tax types in sales to categorise your products. A sales tax type for sales doesn't have any value or percentage associated; it is only to group products with the same tax level together. If, for example, you have the exact same tax level for all products, then you need to create only one sales tax type for sales.
In this video, we'll create two types of sales tax: the Standard VAT and Reduced VAT. The reduced VAT is for those products that have a lower sales tax rate. For that, on the same page where you are, scroll down a bit to the Sales and Tax Types and Schemes and Sales. Then click on Tax Types. Here you can see that I created the Standard VAT, but I need to create a reduced one. So, for that, you need to write here and click on Create. Now that I've created both, you can see them up here. And in both, it shows that I have zero tours and zero options. Why? Because I'm having a product group in either type of tax.
Step 3: Apply Sales Tax Type to Products
This would then be step number three, which is to apply the sales tax type to my products. For that, I go to Products and then Tours. Select the tour, and then on the right side, go to Setup. Under the Money tab, select the sales tax type, for example, Reduced VAT, and Save Changes.
If you want to add a tax type to an option, then it is in process, but you first need to go to Products and then to Options. It's important to add here that if you don't add any sales tax type to a product, it will be considered a non-taxable item. Also, you can change the sales tax type whenever you want, and any changes you make will only affect new bookings.
Step 4: Create Sales Tax Schemes for Sales
The next step is to create sales tax schemes for sales to group channels by tax level. What is a sales tax scheme? Well, this is to define the level of tax that products of each sales tax type will have applied. Same as before, if all your channels have the same tax levels, then you only need to create one sales tax scheme. Go back to Tax and scroll down. So in my example, I will assume that I have one channel that sells in Europe and another that sells in the rest of the world. Click on this link here that says Sales Tax Schemes. Then I'm going to create both schemes. As you can see, I already did Europe, now I still have to do "Rest of the World," and click on Create.
Once this is done, click on the Setup icon on the right side to edit the tax amount. For example, I want to set it at 5% for the reduced VAT and 17.5% for the standard VAT. Then, Save Changes. You have to repeat the same process for the other sales schemes.
Step 5: Apply Sales Tax Scheme to Channel
The last step is to apply the sales tax scheme to our channel. For that, go to Configuration, System and Setup, and then under your Other Stuff, go to Channel Manager. At the top of the page, you see the channel that you are in, so make sure that you're in the right channel. Then click on Sales, Prices, Deposits and Booking Fees. Select the sales tax scheme, and as always, Save Changes. You can edit the values of the sales tax scheme at any time, and also edit the channel to move to a different sales tax scheme. This will only affect new bookings.
Situation 2: Loading Taxes for Costs
Now we will go to the second example, which is loading taxes for costs, which is very similar to loading taxes for selling prices.
The only difference here is that when you go to Configuration and then System Setup, then Tax, you will see if you scroll down until the end that is called Sales and Tax Types and Schemes or Costs. Also, these schemes are applied to individual suppliers rather than individual websites.
To set the sales tax scheme cost per supplier, you need to go to Partners, then click on Suppliers. Once you are in Supplier Manager Overview, click on the Setup icon of the supplier you wish to edit, and then select the sales tax scheme you would like to apply. And don't forget to Save Changes at the end.