Taxes
Taxes are a very important aspect of a company and the Odoo platform allows you
to create and configure the various taxes for your company operations and the taxes
menu can be accessed under the accounting section available from the configuration
tab of the invoicing module.
Invoicing -> Configuration -> Accounting -> Taxes
The image of the taxes window is depicted below.
In this taxes window, you can view all the taxes described in the platform along
with the tax name, tax type, label on invoices, and the name of the company.
The Odoo platform supports a wide range of tax types such as Value Added Tax (VAT),
eco-taxes, federal/state/city taxes, retention tax, withholding tax, and many more.
The chart of accounts that you defined is automatically preconfigured with the main
taxes of the country.
Now we can discuss how to define new taxes in the platform.
The new taxes can be configured by accessing the creation window available. In the
creation window, you can provide the tax name, allocate tax computation from the
drop-down menu, along with the tax scope, tax type, and amount. The tax scope defines
where the tax is selectable which means with sales, purchase, or none and none means
the tax cant to be used by itself. However, it can still be used in a group. Using
the tax scope option we can restrict the use of taxes to a type of product. There
are four different types of tax computations available under the tax computation
option. Which are the group of taxes, fixed, percentage of the price, percentage
of price tax included. Moreover, you have the option active and you can set active
to false to hide the tax without removing it.
Under the definitions tab, the taxing rule for the distribution of invoices and
credit notes can be configured.
Based on Invoices: the tax is due as soon as the invoice is validated.
Based on Payment: the tax is due as soon as the payment of the
invoice is received.
So far we were discussing the tax configuration in the platform and now let us move
on to the next feature Fiscal positions in the platform.