In the United States and many other countries, tax jurisdictions vary in how they tax services and expenses. If you want to tax individual activities and expense items, first determine jurisdiction requirements. You can customize tax field labels for your jurisdictions using Custom Labels (for example, changing MET/MST to GST or VAT).
If the tax authority in your area imposes taxes only on invoiced labor or expenses, set up the MST and MET. If the tax authority charges one tax on top of another, use both the MST and item tax fields.
You can define MST and MET percentages on the Company screen. Each time you set up a new client, BillQuick Online carries forward those rates to the Client profile. You can edit them as needed. In turn, when you set up a new project for a client, MST and MET carry from the Client profile to the Project profile. Again, you can edit these rates.
Line item taxes for labor/services are set on the Activity screen. Similar taxes for expenses are set on the Expense screen. If you do not charge individual taxes on activities and expenses, you can turn off these fields on a company-wide or user-basis from the Global Settings and Preferences screens.
When specified in Expense or Expense Log screen, BillQuick Online subtracts the Purchase Tax from the Cost Amount before charging the client. For example, if you paid a taxi fare of $110 that included 10% GST, you can specify this as the Purchase Tax while recording that expense. BillQuick Online calculates the Charge Amount for this expense on the pre-tax Cost Amount. Thus, while the company will reimburse you for $110, it will charge the client for $100 plus taxes.
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Taxes |
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Purchase Tax |
The rate can be set in the Expense screen. Check ‘Cost Includes Purchase Tax’ option and specify it in the Expense Log screen. |
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Tax 1/2/3 |
The default rates can be set up in the Global Settings-Options screen. Else, you can define these item taxes in the Activity and Expense screen. |
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Main Service Tax Main Expense Tax |
You can specify the main tax rates in the Company screen. BillQuick Online carries them to the Client screen but you can change them there. These rates then carry to the Project screen but you can change them there. You can update these rates globally from the Global Settings screen. |
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Exempt Item Taxes
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Individual projects can be exempted from item taxes (Tax 1/2/3) by checking this option on the Project-Details screen. You can exempt all projects of a client from these taxes by checking this option on the Client-Details screen. |
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MST/MET to Exclude Item Tax
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Main taxes can exclude item taxes (Tax 1/2/3), if desired. You can directly apply the main taxes to labor/service and expense amount on invoices. You can apply these settings at the project level (Project-Details screen) or client level (Client-Details screen). |