Configuring the Tax Setup when using Clever Accounting

Here is a short explanation of configuring the tax setup in Clever Accounting:

Under the Setup Tab there are three choices for Taxes:

(i) Taxes;
(ii) Tax Groups and
(iii) Item Tax Types

i)    Taxes contain all the different rates we need to use to comply with VAT law. Below is an example for Malta:

TaxTypes (Malta)

ii) Tax Groups: In the case of Malta, we have two tax groups: Domestic VAT (for local clients) and Intra-Community & Non-EU Trade (for clients who are not charged VAT as they are not local). So our clients will have their TAX group set to one of the two entries. Note that the Domestic Group includes a number of VAT Types.

TaxGroups (Malta)

iii) Item Tax Types: This links the actual Tax to the Item. So in the example below the VAT @ 18% is only allowed the VAT(F 18%) entry.

ItemTaxType (Malta)

When we move to setting up Clients and Suppliers, we have to choose in which Tax Group they fall. For Malta we have two choices:

Customer Entry

Then we have to set the Item to the proper TAX to be charged:
Item Entry

This way, when you include an item to a client, it will be allocated the proper vat value.

When receiving items from suppliers outside of the Malta (in our case), VAT is automatically not added.

We hope you understood how the tax setup works. If you have any issues, please open a support ticket via Camem, our membership platform. To access Camem, login from here.

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