Calculating VAT / Sales Tax

Bluestore Live allows for completely flexible calculations covering the most complex sales tax / VAT requirements that exist worldwide.

Default tax settings are made depending on your enterprise country so, at least in countries using VAT, they should be possible to use without changes.

A store can be set to have its transactions include tax, for countries with VAT, or exclude tax for countries in which sales tax is added to each transaction.

Four elements combine to determine the value of tax to be applied to each sales transaction, rather than simply assigning a tax code directly to a product for each country/region/store. These four elements are outlined below:

1)  Tax Code

Defines a percentage rate that can be applied for a particular country / tax area. New tax codes can be created when the tax percentage changes - in this way historical tax data can be preserved and the changes are easily applied without having to amend every product record. 

 

2)  Tax Class

Freely definable grouping of products and stores that have the same tax attributes in your business. E.g. taxable items, non-taxable items, food, children's clothing, books, taxable stores, non-taxable airport stores etc. A product tax class is assigned to each product and a store tax class is assigned to each store.

 

3)  Tax Area

A geographical region which has its own tax characteristics. These are freely definable and can be anything from a whole country down to an individual postal code, depending on the requirements of the business taxation rules in your area. All countries are, by default, available as tax areas.

 

4)  Tax Rule

Defines the Tax Codes that are valid for a combination of Tax Classes in a given time period. Multiple tax rules may be valid for a particular product and store, in which case the sort order and priority values allow the user to define in which order the rules are applied and whether the original base amount is used or the incremental values are compounded.

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