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Tax Settings

The Tax Settings page lets you manage your tax agencies, tax rates, and tax groups. Fiskl supports multiple tax agencies in various currencies, including single rates, multiple rates, and compound taxes.

Access Tax Settings by selecting the gear icon on the top left menu, or go to Settings > Tax Settings on the web Dashboard.

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Before you can create a tax rate, you must first set up a tax agency. The tax agency determines the currency and country for all rates assigned to it.

Tax Agencies​

A tax agency represents the authority you pay taxes to, such as HMRC, the IRS, or a regional VAT office. Each tax agency is associated with 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 linked to 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 Settings
  2. Select the Tax Agencies tab
  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 this tax number in generated reports
  8. Select the filing period (for example, monthly or quarterly)
  9. Select a filing date
  10. Select Create
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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 tax rate must be assigned to a tax agency. You can designate rates as either sales tax or non-sales tax.

The currency of a tax rate is determined by its assigned tax agency. You can assign multiple tax rates to a single agency.

Add a tax rate​

  1. Go to Settings > Tax Settings
  2. Select the Tax Rates tab
  3. Select New Tax Rate
  4. Enter the tax name (for example, VAT 20%)
  5. Enter the percentage in the Rate (%) field
  6. Select the Tax Agency to assign this rate to
  7. Select whether this is a sales or non-sales tax
  8. A summary of the selected tax agency details is displayed
  9. 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 also configure compound (stacked) taxes within a group.

Standard tax group​

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

Example: Standard tax group calculation

A group with three taxes applied to a $100 item:

  • Tax A (5%): $100 × 0.05 = $5.00
  • Tax B (6%): $100 × 0.06 = $6.00
  • Tax C (4%): $100 × 0.04 = $4.00

Total taxes: $5.00 + $6.00 + $4.00 = $15.00

Compound tax group​

In a compound group, one tax is calculated on the amount plus the preceding tax.

Example: Compound tax group calculation (Quebec GST/QST)

Quebec applies both federal GST and provincial QST. The QST is calculated on the price plus GST:

  • Base price: $100
  • GST (5%): $100 × 0.05 = $5.00
  • QST (9.975%): ($100 + $5) × 0.09975 = $10.47

Total taxes: $5.00 + $10.47 = $15.47

Create a tax group​

  1. Go to Settings > Tax Settings
  2. Select the Tax Groups tab
  3. Select New Tax Group
  4. Enter a name for the group
  5. Select two or more tax rates to include
  6. If needed, select the Compound checkbox for stacked calculation
  7. Select Create

Additional Actions​

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

From any tax list, you can perform the following actions:

  • To set a default tax, select the star icon
  • To edit a record, select the edit icon. To ensure the accuracy of past transactions, tax groups, rates, and agencies cannot be fully edited after creation. You can only update the name and default status
  • To archive a record, select the archive icon. Use the Status filter to switch between Active and Inactive records
  • From the Tax Rates list, you can also filter by Tax Type
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If you need to adjust the tax composition or rates, 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 tax rate

You must create a tax agency before adding tax rates. Go to the Tax Agencies tab 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 instead.

Missing ledger account for a tax agency

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