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Tax Management

This guide explains how to set up the tax agencies, rates, and groups that apply to your transactions. Fiskl supports multiple jurisdictions, currencies, single rates, and compound taxes.

Before You Begin​

Before you begin, ensure you have:

  • At least one tax agency created — the agency determines the country and currency for every rate assigned to it

For help with other accounting settings, see Accounting Settings.

Tax Agencies​

A tax agency represents the authority you pay taxes to — for example, HMRC, the IRS, or a regional VAT office. Each agency is linked to a specific country and currency.

When you create a tax agency, Fiskl automatically creates a matching Liability ledger account in your Chart of Accounts. All transactions involving taxes for that agency are recorded as journal entries in this ledger account. If you rename a tax agency, the corresponding ledger account is also renamed.

Set Up a Tax Agency​

  1. Go to Settings > Tax Management
  2. Select Tax Agencies
  3. Select New Tax Agency
  4. Enter the tax number
  5. Select a country and currency from the dropdown menus
  6. Enter a prefix (optional)
  7. Select whether to include the tax number in generated reports
  8. Select the filing period, for example monthly or quarterly
  9. Select a filing date
  10. Select Create
tip

If your business operates in multiple countries, create a separate tax agency for each jurisdiction. For example, create one agency for UK VAT (GBP) and another for French VAT (EUR).

Tax Rates​

Tax rates define the percentage applied to your transactions. Each rate must be assigned to a tax agency, and its currency is determined by that agency. You can assign multiple rates to a single agency. Rates can be designated as sales tax or non-sales tax.

Add a Tax Rate​

  1. Go to Settings > Tax Management > Tax Rates
  2. Select New Tax Rate
  3. Enter the tax name, for example "VAT 20%"
  4. Enter the percentage in the Rate (%) field
  5. Select the Tax Agency to assign this rate to
  6. Select whether this is a sales or non-sales tax
  7. Review the tax agency summary displayed on screen
  8. Select Create

Tax Groups​

Tax groups let you combine two or more tax rates into a single selection. This is useful when multiple taxes apply to the same transaction. You can configure groups as standard or compound.

Standard Tax Group​

In a standard group, each tax is calculated independently on the original amount.

Compound Tax Group​

In a compound group, one tax is calculated on the original amount plus the preceding tax. This is used for tax systems like Quebec's GST/QST.

Create a Tax Group​

  1. Go to Settings > Tax Management > Tax Groups
  2. Select New Tax Group
  3. Enter a name for the group
  4. Select two or more tax rates to include
  5. Select the Compound checkbox if you need stacked calculation
  6. Select Create

Managing Tax Records​

Select Refresh to make sure you are viewing the most up-to-date information.

From any list in Tax Management, you can:

  • Set a default — Select the star icon next to a rate, group, or agency
  • Edit — Select the edit icon to update the name and default status
  • Archive — Select the archive icon to hide records you no longer need
  • Filter by tax type — Select a filter from the Tax Rates list to narrow results

To protect the accuracy of past transactions, you can only update the name and default status after creation. Filter by Status to show active or archived records.

warning

To change the composition or percentage of a tax group, archive the existing group and create a new one. For example, if a tax rate changes, create a new tax group with the updated rate.

Common Issues​

Cannot create a new tax rate

You must create a tax agency before adding tax rates. Go to Settings > Tax Management > Tax Agencies and set up at least one agency first. The agency defines the country and currency for the rate.

Tax rate shows the wrong currency

A tax rate inherits its currency from the assigned tax agency. To use a different currency, create a new tax agency with the correct currency and assign the rate to that agency.

Liability ledger account is missing for a tax agency

Fiskl creates a Liability ledger account automatically when you add a tax agency. If the account is missing, check your Chart of Accounts for an account with the same name as the tax agency.