General information about taxes
Taxes play an important role in modern business, so the RemOnline system offers a convenient tool for setting up and applying them. Thanks to this, companies can automate tax calculation processes in accordance with the requirements of the law and the specifics of their activities.
If your company is a taxpayer, RemOnline has the ability to customize and apply tax rules to products and services in orders, sales, invoices, and postings.
When applying tax rates, RemOnline calculates the total amount of tax from each document and summarizes it in a table that you can view in the Tax calculation report.
Types of taxes
When creating taxes in the RemOnline system, you can choose the “Inclusive” or “Exclusive” type.
Please note: tax is calculated not on the total amount of positions in the work order, but for each unit separately.
Inclusive tax is a tax that is included in the cost of products. That is, when using this type of tax, you need to indicate the purchase price of the products including this tax during the posting procedure.
Example 1
For example, the embedded tax is 20%. Let's take a product worth €100 as an example. That is, the product costs €100 and already includes 20% tax. Since the product already includes tax, we calculate the tax amount:
Amount including tax = €100 / (100% + 20%) = €100 / 120% = €100 / 1.2 ≈ €83.33
Tax paid: €100 - €83.33 ≈ €16.67
This means that the tax paid is €16.67.
Example 2
To find the amount of tax paid (already included in the price) at a rate of 17% and a product price of 683 €, use the following formula:
683€ / (100% + 17%) =683€ / 117% = 683€ / 1.17 ≈ 583.76
Tax included: 683−583.76=99.24
Tax included at a rate of 17% on a product worth 683 ≈ 99.24
Formula for calculating the tax paid: Price including tax - (Price including tax / (1 + Tax rate/100)) = Amount excluding tax
Price including tax - Amount excluding tax = Amount of tax paid
Exclusive tax is a tax that is paid additionally and is calculated on the final cost of a good/service. When using this type of tax, the total amount of the order/sale will differ from the total amount of the items in this order/sale. Because the tax will be calculated on the final amount of the sale.
For example, the exclusive tax is 20%. Let's take an example of a product costing €100.
Exclusive tax: 100€ × 20% = 100€ × 0.2 = 20€.
Creating taxes
If your company is a taxpayer, it is convenient to create taxes in RemOnline and apply them in various documents. Learn more about creating taxes.
Groups of taxes
For convenience, you can combine taxes into groups. This is especially useful if different tax rates apply in different locations.
Application of taxes
Taxes can be applied to documents (orders, sales, invoices, postings).
In the General rules section, add a tax or a group of taxes.
Set the priority of taxes in the list.
Learn more about Application of taxes.
Editing and deleting
Tax rules can be edited or deleted. After making changes, the user can choose whether to recalculate taxes in existing documents.
Exceptions
RemOnline allows you to set up exceptions for the entire category or separately for a product or service. For example, you can make an exception for services if they are not subject to taxes. More details about tax exceptions.