knowledge base

For many countries (most notably in Europe) user may have to include VAT in their prices and will want to set up their taxes such that they can do so depending on the product.  In many cases, certain products will have a reduced VAT and so you will need to apply more than one tax rate to the same order.  In order to do so in inFlow you will need to take advantage of the product tax codes as well as ensure you've set your taxing scheme up for your multiple rates.  Let's start with your taxing scheme:
 
You can set up your taxing scheme in the General Settings window which is accessible from the homepage on the far right or via the main menu under settings > general settings.  Within the "Pricing & Tax" tab here you can change your taxes by clicking the "edit tax codes" button.  The resulting window will look like this:



Let's use the UK VAT rates as and example.  Currently (as of July 2011) the VAT rates in the UK are as follows: Standard rate is 20% and the reduced rate is 5%.  There are also some items which might not have tax at all.  Using these rates we would say that the primary tax rate is 20% and the secondary tax rate is 5%.  It would appear as below:



Once you've set that up and clicked the "save and close" button you'll want to enable product tax by clicking the "Show Product Tax" option in the general settings window and then click the edit product tax codes button to do so.  Within this window you will be able to add your tax codes for each product.  In this case we're going to set up one that is strictly the primary tax, one that is strictly the secondary tax and a final code to which no tax is applied.  The result will look like this:



So now that you have tax codes you can apply them to each of your products.  In the product record you can select the appropriate tax code for each product (it will now be visible in the sales section of your product record).  This will result in only the primary or secondary tax being applied to each item based on its tax code.  The resulting sales order might look something like this:



If you have any further questions or concerns about this information please feel free to get in touch with us at support@inflowinventory.com