Tax Rate Determination

 

In general,  EzzyBills extract 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”.

For businesses not registered for GST or VAT”

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