This example shows how to create a tax component for a flat amount tax e.g. tax rate on per unit of goods.
Step 1 - setup tax component
| Tax Component: | $0.6 Flat Amount Tax on per unit/gallon of LNG |
|---|---|
| Tax Information: | |
| Tax Code: | Flat Tax on LNG |
| Tax Description: | Flat Tax on LNG |
| Account Code Description: | Purchase Tax or another payable account code |
| Tax ID Number: (optional) | |
| Country: | United States of America |
| Tax Based On: | Flat Amount per Unit |
| Decimal Round Up: (optional) | 2 |
|
Apply On: |
Extended Price |
| Computation Rules: | |
| Percentage of Goods and Services: | 100% |
| Minimum taxable amount: | 0 |
| Maximum taxable amount: | 99,999,999 |
| Percentage of Tax/VAT to apply: (e) | |
| a. Flat Rate: | $0.6 on per unit/gallon |
| b. Postal Rate: | Tax Rate from postal code. See Also: System Setup > Postal Codes |
| Minimum Taxable Amount: | 0 |
| Maximum Taxable Amount: | 99,999,999 |
Step 2 - setup tax scheme
| Tax Scheme: | Kentucky State Excise Tax on Diesel Fuel |
|---|---|
| Tax Information: | |
| Tax Code: | Flat Amount Tax |
| Tax Description: | Flat Amount Tax |
| Country: | United States of America |
| Tax Type: | Sales |
| EC Goods and Service: | NA |
| EC Sales or Purchase: | NA |
| EC Notional Rate: | NA |
| Tax Components: | |
| Selected Tax/VAT Component: | Flat Tax on LNG |
So that:
Extended Price: $4.22
Flat Tax per unit/gallon: $0.6
$4.22 + $0.6 = $4.28
Next Steps:
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Assign default sales or purchase tax. See Also: Customer Class Templates | Customers Ship To Class Templates | Supplier Class Templates
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Maintain sales or purchase tax. See Also: Other Tax Options