3. Tax Rate Determination

I. EzzyBills extracts tax rates from the invoices.

• The tax rates can vary by line.
• EzzyBills uses the default tax code in Xero Contact in the following circumstance:  several tax codes in your Xero have the same rate, but you prefer to use a particular one (that you set in your Xero Contact for this supplier). One example is “VAT Free” or “No VAT”  (both has 0% VAT): if “No VAT” is set in Xero Contact for this supplier, it will get used, instead of “VAT Free”.

II. For businesses not registered for GST/VAT:

• there is an option of use zero GST/VAT rate for all transactions regardless what is stated on the invoice.
• Settings > “Advanced Options” > “Convert Invoice to Tax Free”: if this setting is ticked, we will export all bills as Tax Free to Xero or QuickBooks Online. The invoice total will include the tax (but with the tax code as tax free).

III. Set default tax codes on workflows

For locations that have multiple tax codes for the same tax rate, there is an option to set the default in a workflow, on the workflow task “Xero Export“. It is rarely used, but could be very useful if you have special needs. You may have multiple workflows and for one of them, you set special tax codes (screenshot below).