How to Create a Tax Code in Manager.io?

Manager.io already has created tax codes for many countries. If your business is located in one of the countries that Manager.io has predefined tax codes for them, you don't really need to go through this process. However, if it doesn't have predefined tax codes for your country or the particular tax code that your company is required to pay, you can create it simply using the process taught in this article.

Create a tax code in Manager.io

Before you could create a tax code, you would need a liability account for taxes. To create a liability account go to Settings.

Click on Chart of Accounts.

On the Balance Sheet side click on New Account.

Complete the form like mine, you can select a different name. Code is optional. In Balance Sheet field select Liabilities. Then, click Create.

Now, go back to Settings and click on Tax Codes.

Next, click on New Tax Code.

Fill the fields with the right information.

Name:

Give your tax code's name here.

Label:

Give your tax code a label.

Tax rate:

Select a suitable tax rate. If you select Custom %, two more options will be activated; Type and Rate.

Type:

Either select Single rate or Multiple rates. If you select Multiple rates, you can add different rates with different names. I selected Single rate.

Rate:

Define the rate of the tax code in this field.

Account:

When you enter in Rate field, the account field appears. Select the Taxes Payable account.

Reverse charged:

If the tax code is reverse charged, activate this option.

Custom sales invoice title:

If you want the sales invoices containing this tax code have a different name, you can define one after activating this option.

Custom credit note title:

Just like the option above, activate this option and define a custom credit note title for the ones that contains this tax code.

Create:

After completing the necessary information about the tax code, click on Create to save the tax code.

Create & add another:

Alternatively, if you want to keep adding more tax codes, click on Create & add another.

Inactive:

This option will appear once you create the tax code. If you have recorded transactions using this tax code, you will not be able to delete it, even if you have no use for it. However, you can make it inactive and it will not appear among your active tax codes.