Settings – Taxes

In the Taxes tab, you are allowed to add taxes that may be applied to your buy or sell transactions, including both the buy and sell prices, or to the margin.

For tax Type Buy, only the name and percentage can be set up.

For Tax Type Margin, Sell, or Buy/Sell, in addition to the name and percentage, you can set taxes per Brands, Country Areas, Product Category, and you must choose a Calculation Type that defines how the calculation is made at the arrangement level (when the product to which the tax is applied is booked into a Deal).

Add A New Tax

Use + ADD TAX to add a new tax entry in the system.

The Name might be, for example, VAT 19%, so that it is explicit for you during the price calculation process, as the names are displayed in the Tax Code drop-down of the Product – Price entry and Arrangement – Price entry sections.

If you select Buy – the drop-down will show the entry in the Buy price section.

The same for Sell, the drop-down will display the entry in the Sell price section.
If Buy/Sell is selected, the tax will appear in both the Sell and the Buy tax fields.

If Margin is selected, the tax will be applied to the margin calculated on the arrangement. It will be automatically applied per arrangement in the booking process.

Each tax can be edited or deleted by selecting it and using the Actions button.

The system allows setting a single tax Type (Sell, Buy/Sell, or Margin) for the same combination of brand and country area.

The considered brand will be that of the Deal, and the Country area will be considered that of the product.

Sell Type Tax

The tax calculation on the arrangement level is based on the Calculation Type as set in the Tax details

• If the Calculation Type is set to None – the original calculation of sell tax is used.
• If the Calculation Type is set to Sell Exclusive Tax – Sell Exclusive Tax is calculated from Sell Inclusive Tax with backward calculation.
• If the Calculation Type is set to Sell Inclusive Tax – Sell Inclusive Tax is calculated from Sell Exclusive Tax by applying the tax.
• If no tax is found matching the combination, use the Sell tax set at the Product/Price level and calculate based on Calculation Type.
• If no tax is found matching the combination and there is no sell tax set at the Product/Price level, no sell tax will be applied.

Tax on Margin

Tax on margin is automatically applied to the sell price.

Margin may represent:

• Net Sell minus Gross Buy (Buy including tax) – if calculate_margin_with_buy_ex_tax = false
  • or
• Net Sell minus Net Buy (Buy without tax) – if calculate_margin_with_buy_ex_tax = true

When the price is loaded as an arrangement, based on the brand of the deal (which is set as the brand of the arrangement) and the country area of the product, the tax on margin will be applied even if those prices already have a tax set at the Product/Price level.

The search to identify the tax on margin, which is set by country, is done in such a way to match all products from a certain country even if in the Country Area of the product a lower level is set.

The tax calculation on the arrangement level is based on the Calculation Type as set in the Tax details

• If the Calculation Type is set to None – the original calculation of sell tax is used.
• If the Calculation Type is set to Sell Exclusive Tax – Sell Exclusive Tax is calculated from Sell Inclusive Tax with backward calculation.
• If the Calculation Type is set to Sell Inclusive Tax – Sell Inclusive Tax is calculated from Sell Exclusive Tax by applying the tax.
• If no tax is found matching the combination, use the Sell tax set at the Product/Price level and calculate based on Calculation Type.
• If no tax is found matching the combination and there is no sell tax set at the Product/Price level, no sell tax will be applied.

When the tax on margin is applied, only the sell price is recalculated in the arrangement. The buy price remains as set, without being altered by the calculation.

Certain products, like insurance products for example, should not have tax calculated. For these kinds of products, the tax will be set to 0 at the arrangement level.

For arrangements where tax on margin is applied, the system displays:

• Sell ex tax calculated – in the current Unit Price field from the Sell section
• Profit percentage
• Markup percentage – in the current Markup % section
• Margin value on which the tax on margin is applied – label Margin for Tax on margin
• Tax amount on margin – label Tax amount on margin
• Tax percentage on margin – label Tax % on margin

Deal Details – Arrangements – Totals

Totals: Total buy is the total buy incl. tax; Total Sell is the total sell ex tax.

Commission: Commission incl Tax.

Net Total: Total ex tax – commission.

Tax on Margin: if custom margin for tax on margin is not 0.

Tax: other taxes, if any.

Total Incl. tax: Net total sell + tax on margin + other tax.

Margin percentage: is calculated from the sell price without deduction.

Margin net percentage – is calculated from the sell price with deduction.

Profit net percentage = calculated as (1 – total Buy Price / (total Sell Price NoTax – deduction)) * 100

• Profit Net = total Sell Price NoTax – Deduction – total Buy Price (Margin Net)
  • Calculated depending on the following
    • if there is a final Supplier invoice added – taken from the total invoiced by the supplier * buy exchange rate)
    • if there is no final Supplier Invoice, and if calculate_margin_with_buy_ex_tax = false, this is the total of Buy Total Price HC fields of arrangements
    • if there is no final Supplier Invoice, and if calculate_margin_with_buy_ex_tax = true, this is the total of Buy Total Price Exclusive Tax HC fields of arrangements