Tax Types & Rules
Last updated
Last updated
When setting up packages, you'll need to properly configure tax rules to ensure accurate billing for your customers. This guide will walk you through defining a new tax type and tax rule in the Loopit tax engine.
Tax rules allow you to specify which taxes apply to billing items based on the customer's location and the types of items in their booking. Properly configuring taxes is crucial for compliance and avoiding over/undercharging customers.
Defining Tax Types
Go to the tax section in Loopit settings and navigate to tax types.
Click on "Add Tax Type."
Enter the code and name for the tax type (e.g., VAT for the UK).
Save the tax type.
Creating Tax Rules
Proceed to tax rules within the tax section.
Click on "Add Tax Rule."
Enter the name of the tax rule (e.g., VAT).
Select the tax type (e.g., VAT).
Set the tax rate (e.g., 10%).
Choose whether the tax rule applies to specific items or all items.
Assign the tax rule to relevant items (e.g., base fee, processing fees).
Optionally, specify the tax rule by country, state, city, or postcode for more granular application.
Save the tax rule.
Ensure that the tax type and tax rules are accurately defined to avoid errors in tax calculations.
Double-check the application of tax rules to specific items to prevent incorrect taxation.
Keep tax type and tax rule names clear and consistent for easy identification.
Utilize the option to specify tax rules by country, state, city, or postcode to tailor tax application as needed.
Regularly review and update tax rules to align with changing tax regulations or business requirements.