Set up tax rates and tax groups

AutoShop POS calculates tax on each line of an estimate or invoice from the tax rate on that product. You create the rates once, combine them into groups where needed, and attach them to your parts and labour. This guide covers the screens; your accountant should confirm the actual rates you charge.

Before you start

• Confirm with your accountant which rates apply to parts and to labour where you trade. In the US this depends on the state and sometimes the city or county. In the UAE, VAT is 5% for most supplies. In Pakistan, check the federal and provincial rates that apply to your business.
• Have your tax registration number (TRN in the UAE, NTN/STRN in Pakistan, state permit number in the US) for the invoice layout.
• Know whether you want prices entered inclusive or exclusive of tax; see business settings.

Steps

1. Open Tax rates. Go to Settings → Tax rates. The menu may be labelled slightly differently on your account.
2. Add each single rate. Click Add, give the rate a clear name (for example “TX state 6.25%”, “UAE VAT 5%” or “Punjab services”) and enter the percentage. Save.
3. Add a zero or exempt rate if you need one. Some shops need a 0% rate for exempt customers or zero-rated items so the invoice still states the treatment clearly.
4. Create tax groups for combined rates. In the tax groups section, click Add, name the group (for example “Houston combined”) and select the single rates it contains. The group total is the sum of the rates.
5. Set the default tax. In Business settings, choose the default tax applied to new products if your account offers it, so new parts start with the right rate.
6. Apply tax to products. Open each labour service and part, or use the import template, and choose the right rate or group. Choose the inclusive or exclusive price type so the selling price is read correctly.
7. Show your tax number on invoices. Go to Settings → Invoice settings, open the invoice layout and turn on the tax number field and label, for example “TRN” for UAE invoices.
8. Test. Create a quotation with one part and one labour line and check the tax amount on each.

Check it worked

• On a test quotation, the tax on each line matches a calculator check: for exclusive prices, line price × rate; for inclusive prices, the tax portion already inside the price.
• The tax group on a combined-rate product shows both component rates in the totals.
• The printed invoice shows your tax number and a tax summary.
• The tax report for today shows the test amounts. Delete the test quotation afterwards.

Common problems

• Tax is charged on top of a VAT-inclusive price. The product’s price type is set to exclusive. Edit the product and switch it to inclusive, then re-check the selling price.
• A product shows no tax. Its tax field was left blank, often after an import. Filter the product list by tax and fix the blanks.
• A rate changes and you are worried about old invoices. To keep past records clean, add a new tax rate rather than editing the old one, and move products over to it from the change date.
• Customers in another state or emirate need a different rate. Create the extra rate or group and apply it where needed. If you regularly need to change tax per line at the counter, ask support how line-level tax editing is set up on your account.